An original version of this article was first published by Business Brief, August 2024.

As part of its Climate Change Policy and Action Plan approved in 2020, the States of Guernsey has set a target of achieving ‘net zero’ greenhouse gas emissions by 2050. One measure under consideration to meet that goal is the introduction of an energy performance rating and certification system for buildings, known as Energy Performance Certificates (EPCs).

The UK's model for for energy efficiency

The United Kingdom introduced EPCs in 2007 in implementation of EU legislation. The legal framework has evolved over time and EPCs are now mandatory for all residential and commercial properties that are built, sold, or rented.

An EPC provides essential information about a property’s energy efficiency, including:

• An asset rating
• Detailed property information
• A recommendation report
• Green deal information

Properties are rated on a sliding scale from A (most efficient) to G (least efficient).

The UK’s law on Minimum Energy Efficiency Standards (MEES) further requires properties to have an EPC rating of at least E to be let, subject to certain exemptions.

EPC scores consider factors such as insulation, heating, ventilation, and air conditioning systems, as well as the age of the building. This information helps buyers and tenants understand energy costs and the overall sustainability of the property, supporting broader Environmental, Social, and Governance (ESG) goals.

The introduction of MEES has also driven property owners to make necessary improvements, ensuring buildings meet minimum energy efficiency standards and reducing overall carbon emissions.

Jersey's tailored approach

Jersey’s Carbon Neutral Roadmap, approved in April 2022, includes plans to introduce its form of EPC regime, to be known as Jersey Energy Performance Assessments (JEPA).

JEPA will use a similar rating scale to the UK’s EPCs, ranging from A (most efficient) to G (least efficient). From 1 January 2026, all properties sold or starting new lease agreements in Jersey must have a JEPA. By 1 January 2028, minimum energy performance standards will be introduced to improve the energy efficiency of the least efficient buildings.

Jersey’s approach mirrors the UK’s commitment to energy efficiency but adapts it to local needs. This localised approach ensures that Jersey’s property market characteristics are addressed, facilitating smoother implementation and higher compliance rates.

Anticipating changes in Guernsey

While the specific form of an EPC regime in Guernsey is yet to be determined, it is anticipated that some form of energy performance assessment will be in place before the 2050 target.

Developers and landlords can take steps now to prepare for such a regime and make their properties more attractive to tenants where ESG goals are important to their long-term occupation requirements.

One effective strategy is adopting the BREEAM (Building Research Establishment Environmental Assessment Method) standards. BREEAM certification can be applied at various stages of a project, from design and construction to operation and refurbishment. BREEAM provides a comprehensive framework for assessing and improving the environmental performance of buildings, significantly enhancing a property’s marketability and long-term value.

Landlords may also consider future-proofing long-term lease documents by including clauses that require tenants to:

1. Cooperate in preparing an EPC and recommendation report.
2. Allow access to energy assessors when necessary.

These provisions would ensure landlords can comply with future regulations without significant obstacles from tenants.

Moving forward

Understanding and improving the energy and carbon impact of properties will be essential not only for legal compliance in the long term but also to ensure that assets remain valuable and relevant in a sustainable future. By taking steps now to improve energy performance, Guernsey property owners can stay ahead of regulatory changes and ensure that the local property market remains competitive and resilient.

Going forward, collaboration among developers, landlords, tenants, and policymakers will be crucial. By aligning efforts to prioritise energy efficiency, Guernsey will be one step closer to achieving its climate goals.