As one of the most significant contributors to global carbon emissions, the way that the real estate industry constructs, manages and operates built assets is a central focus for governments and policymakers in the race to reach net zero.

Yet, while a lot of investment and innovation has focused on reducing carbon in new-build construction, this is only part of the problem. Given that 80 percent of the building stock we will have in 2050 has already been built, battle lines should arguably be drawn with greater emphasis on reducing the daily operational emissions created by inefficient existing properties.

Retrofit is therefore key to achieving net zero carbon (NZC) with its focus on optimising the energy performance of existing assets. This retrofit journey can be paralleled to the rise of the health and safety agenda over the past 30 years. On the contrary, the retrofit market cannot take decades to mature – a great leap forward is needed within the next five years to mitigate against risk, meet demand and unlock a sizeable opportunity.

Building a scalable model

Rapidly scaling up retrofit activity requires radical interventions and systemic change. Despite a recent uptick in activity in some key markets, typically focused on upgrading public sector stock, the retrofit sector still has the hallmarks of being a ‘cottage industry’ that is small scale, high intensity and decentralised.

Industrialising the existing market without first transforming the way it operates would be a strategic misstep. The current UK retrofit sector is subsidy dependent and focused on small-scale, bespoke solutions on individual homes that risk delivering limited fuel or carbon savings, with no clear return on investment.

We need to break this cycle, creating a simple and desirable retrofit product that is both business and consumer focused. To play its part in addressing the climate crisis, retrofit needs to become a fully self-funding market with a programme- led, lean and digital delivery model.

Start of the green industrial revolution

We face an unrivalled opportunity to move towards a virtuous circle of retrofit investment that will ultimately help generate a ‘gold standard’ model for retrofit, which can be rolled out across global regions.

Market adoption of new practices and upskilling workers can typically take multiple decades, but when it comes to net zero, we do not have the luxury of time. We are set to see an exponential rise in demand for retrofit projects in the coming years from the current low base – growing in both complexity and scope.

To meet this requirement, it is imperative we rigorously apply construction sector best practice.

Many of the areas that have been a focus for the construction sector for decades – digital design and build, off-site manufacture and precision engineering – will be critical to the successful delivery of retrofit programmes. BIM, for example, provides essential modelling to build a clear picture of whole-life carbon impacts.

Retrofit is a rare, greenfield opportunity for our industry that is driven by a critical and socially motivated purpose. It is therefore our collective responsibility to use retrofit as a catalyst for a ‘green industrial revolution’ – which will help our market, clients and future generations to thrive.