A Low-Carbon Economy: New Business Models in the Built Environment

Buildings account for approximately 47% of UK carbon emissions, including lighting, HVAC and other equipment. This project explores the opportunity for new business models to deliver these products and services in the context of policy and technological change. Led by Oxford University’s Environmental Change Institute, the project looks at changing roles for energy companies, telecommunications businesses and the real estate sector, and the ways these organisations might reformulate themselves in a changing policy context.

About the project

This research explores the impact of policy measures to deliver a low-carbon economy (both near-term and more extensive policy change) on the development of new business models in the built environment. As a consequence of policy changes and alongside technology changes, the business landscape which delivers and manages solutions for the built environment is likely to undergo major reorganisation, for both new and existing organisations. These new business models may not exist solely in the commercial sector. They may exist as partnerships between the private sector and public sectors, and even at the intersection of the private sector with civil society.

Theoretical perspectives

The research will utilise a range of existing theoretical perspectives in science and technology studies (STS), including:

Impact summary

This research is important to achieving high levels of carbon emissions reductions in the built environment, through two main outcomes:

Government has put a great deal of money into technological innovation; however, what we need are new service models and new ways of achieving high levels of market penetration for technologies we already have. At the moment, policy is heavily focused towards incumbents. This is perhaps because government policy making is heavily consultation oriented; equivalent policies on the continent have created new market entrants.

About the research team

Mark Hinnells has been working in one aspect or other of the energy sector since 1992. This includes time in academia, in government, and in the private sector. At the same time as holding a part-time post at ECI under the Future of Cities programme, Mark is Solutions Director of a private company Susenco (www.susenco.com). Susenco offers a range of consultancy services and is developing financing and will operate a portfolio of renewable energy installations. At present Susenco is working on an asset portfolio of in excess of £100million. Mark is also a founder of the networking site for low carbon business, 2degrees (www.2degreesnetwork.com). Prior to this, Mark has had two spells each more than 4 years at the Environmental Change Institute in Oxford. The first of these was supporting development of EU energy labels and minimum standards for domestic and non-domestic equipment. The second, leading a research team at ECI exploring scenarios for large-scale carbon emissions reduction for the UK building stock (both residential and non-residential which, together account for 47% of UK CO2 emissions). This latter programme had over 80 publications via a range of journals and conferences. In between spells at ECI, he has served at both DEFRA and at the Energy Saving Trust in designing and delivering government policy to reduce emissions. This included managing a team of 18 to deliver a £50m government capital investment programme called Community Energy.