This chapter is about the places we live and work, how they serve their purpose and users and their impact on carbon emissions and the environment. It looks at how buildings use and affect demand for energy and keep us warm and cool. It is about how new buildings will be designed and constructed and how current buildings will be adapted and optimised, and how these elements fit into the net zero 2050 puzzle.
Ultimately, it is about how we can move away from fossil fuels in the construction, powering and heating of our buildings and how we can educate building users on energy demand and efficiency, and the processes by which we can make less carbon intensive choices.
I’ve heard about alternative energy sources but would like to know more about how they can be used in a normal home environment.
Buildings are a huge and integral part of our lives and are a unique part of the historical and cultural identities of our communities. Buildings house individuals and families, allow businesses and public services to provide goods and services, and provide safety and security from the effects of climate change.
Buildings require energy to provide power and heat in the delivery of their functions – whether this is home appliances or manufacturing equipment. net zero depends upon ensuring that buildings, whether through retrofit or new construction, are fit for purpose and energy efficient alongside ensuring that the users of buildings understand their role in minimising energy demand and consequentially emissions resulting from building use.
Building emissions are estimated at 313 ktCO2e for 2023, equating to 65% of total energy system emissions – this excludes emissions from waste and land use, land use change and forestry.
Heating comprised 48% of total energy across the County Borough with homes accounting for 72% of all heat demand.
In Caerphilly there are 81,000 domestic buildings:
96% of homes are connected to the gas grid, above the regional average of 91%. 5% of housing stock is unoccupied, below the Welsh average of 8.4%. CCBC’s Caerphilly Homes team have 10,682 homes to manage, maintain and improve.
It’s amazing the difference that something small, like dialling back the heating one notch, can make.
The energy efficiency of housing stock varies across the County Borough. Homes in Blackwood, Hengoed and Caerphilly exhibit higher average Energy Performance Certificate (EPC) ratings. Smaller settlements outside of these main population centres typically have lower EPC ratings.
In 2019, 9% of households in Caerphilly County Borough were regarded as being in , compared to 14% of households across Wales.
There are 5,500 non-domestic buildings:
The UK has a legally binding target to reduce net emissions by 100% by 2050 (compared to 1990 levels). The Climate Change Committee has stated that the UK will not meet its decarbonisation targets without almost complete decarbonisation of housing stock with residential buildings accounting for 20% of UK-wide GHG emissions.
The Heat Strategy for Wales, published in 2024 by Welsh Government, is led by five fundamental principles in tackling the challenge of heat decarbonisation in Wales:
The strategy emphasises a whole-system approach, involving collaboration with the UK Government, industry, and local communities to achieve these goals. The accompanying action plan supplements the building specific actions outlined in Carbon Budget 2.
The Welsh Housing Quality Standard (WHQS) ensures that all social housing in Wales is of good quality and suitable for residents’ needs. It requires homes to be in a good state of repair, safe and secure, energy-efficient, and equipped with modern kitchens and bathrooms. The standard also emphasises creating attractive and safe environments for tenants.
The Optimised Retrofit Programme (ORP) is a key tool in decarbonising social housing, offering funding to Registered Social Landlords (RSLs) and Local Authorities (LAs) to install energy efficiency measures. It takes a whole house, pragmatic approach, considering the building fabric, heating systems, energy storage, and energy supply, while also addressing ventilation and renewable energy technologies where appropriate.
Central to ORP delivery are PAS 2035, PAS 2030, current building standards, in particular, Part L of the Building Regulations. PAS 2035 sets out a whole-house, fabric-first approach, requiring comprehensive property assessments, including Retrofit Assessments and Retrofit Coordination, to apply the right measures in the correct sequence, avoiding issues like damp or poor ventilation. PAS 2030 defines competency requirements for installers, ensuring accredited contractors deliver high-quality installations that comply with the relevant technical standards. Part L establishes minimum energy efficiency standards, driving improvements in insulation, heating, and carbon emissions, aligning retrofit works with the government’s long-term net zero objectives.
ORP funding is contingent on adherence to these standards, ensuring consistent quality and maximum carbon savings. It also requires ongoing monitoring and evaluation of the retrofit measures to demonstrate performance outcomes. The programme’s third phase concludes in financial year 24-25, with its continuation set to play a critical role in the long-term decarbonisation of social housing.
By embedding these standards, ORP funding not only improves energy efficiency now but also lays the foundations for sustainable, net zero social housing in the future, helping to future-proof homes and improve residents’ comfort and wellbeing.
Promote the fitting of bird, bat and insect bricks/boxes to enhance new and existing structures for biodiversity to assist without zero targets.
New build projects are likely to have an improved efficiency compared to older stock however the private housing market is still producing homes that are not fit for a zero-carbon future, we need to meet net zero standards and at scale.
All new homes (social and private) should be fitted with solar panels as standard. This would greatly help to meet the net zero targets and would also prevent valuable green land from being covered in solar panels. thousands of houses in the borough with their own solar supply. Such an opportunity.
The Local Area Energy Plan (LAEP) for Caerphilly County Borough provides a clear strategy to transition the local energy system to net zero emissions by 2050. The plan identifies the most effective actions to reduce energy demand, improve energy efficiency, and increase the use of renewable energy across homes, businesses, and public buildings. It highlights low-regrets interventions – such as insulation upgrades, heat pumps, and smart energy systems – which deliver immediate carbon savings, lower energy bills, and improve the comfort of buildings.
The LAEP supports the shift towards decentralised energy systems, promoting local renewable energy generation through solar, wind, and district heating networks. This approach strengthens energy security and resilience, reducing reliance on fossil fuels while protecting communities from rising energy prices and supply disruptions.
The 2nd Replacement Local Development Plan (2RLDP) will embed these principles into future developments, setting policies that require new residential buildings to meet Passivhaus standards and encouraging the use of low-carbon materials and integrated renewable technologies. Industrial, commercial, and public buildings will also be guided by policies promoting sustainable construction methods, higher energy performance, and retrofitting of existing properties to improve energy efficiency.
A just transition to net zero will require the involvement of local communities. Engagement programmes will provide advice and support to help residents and businesses improve their energy efficiency, while community energy projects will enable neighbourhoods to benefit directly from locally generated renewable energy. The plan will also create green job opportunities and support skills development in retrofitting and low-carbon construction.
Collaboration between Caerphilly County Borough Council, local businesses, housing associations, and community groups will be essential to deliver these ambitions. Access to Welsh Government funding programmes such as the Optimised Retrofit Programme and other funding streams will help unlock investment in low-carbon infrastructure, creating a more resilient, inclusive, and sustainable energy future for Caerphilly County Borough.
Although it is important for new residential development to decarbonise and provide energy resilient solutions, it is equally important that new industrial, commercial and institutional development also plays a role in reaching net zero. Therefore, the 2RLDP will also contain policy and guidance that will promote net zero construction with increased energy efficiency and reduced energy demand in these sectors.
By 2050, we want our buildings to be demanding less energy, generating renewable forms of energy, adapting to a changing climate, and still serving their purpose to families and the community, whilst providing safety, a sense of belonging, and ultimately contributing to our well-being and that of the planet.
Maesteg Sheltered Housing Retrofit – Caerphilly County Borough Council (CCBC) has completed a transformative retrofit at Maesteg sheltered housing in Pentwynmawr, Newbridge, dramatically improving energy efficiency, resident comfort, and environmental performance. The scheme forms part of CCBC’s commitment to decarbonising its housing stock and enhancing residents’ quality of life.
The retrofit included external and cavity wall insulation, triple-glazed windows and doors, roof renewal with integrated photovoltaic (PV) panels, and Mechanical Ventilation with Heat Recovery (MVHR) systems along with loft insulation upgrades and Low Energy Lighting (LED) installed. Predictive modelling was used to prioritise the most effective measures. These upgrades have significantly improved the energy ratings of individual homes, raising them from D/C to high B/A.
Resident engagement was at the heart of the project, with pre-start consultations, regular feedback sessions, and a post-completion handover event demonstrating how to use the new systems and maximise energy savings.
The environmental benefits are equally impressive. While the average UK household produces six tonnes of CO₂ per year, these newly retrofitted homes now produce an average of just 0.6 tonnes – a 90% reduction. Over the next 12 months, CCBC will monitor energy consumption, indoor air quality, thermal comfort, and PV energy generation, alongside routine maintenance checks, to ensure the upgrades deliver lasting benefits. Early feedback has been overwhelmingly positive, with residents reporting warmer homes and lower bills.
The Maesteg retrofit evidences CCBC’s commitment to creating high-quality, low-carbon homes that improve quality of life and support a more sustainable future.
| Indicator | Baseline | Notes |
| EPC Ratings for Domestic Buildings (Private) | A – 140 B – 4,062 C – 22,413 D and below – 43,425 |
2023 LAEP Data |
| EPC Ratings for Domestic Buildings (Social Housing) | A-39 B-99 C (75-80) – 1074 C (69-74) – 4893 D – 2184 E-73 F – 2 No DATA – 2318 |
Caerphilly Council Owned Social Housing Stock at January 2025 |
| EPC Ratings for Non-Domestic Buildings | TBC | |
| Number of Heat Pump Installations (Domestic) | 302 ASHP 43 GSHP |
DFES Installed Capacity Report 2024 |
| Non-Domestic Heat Pump Installations | 105 sqm Floorspace | DFES Installed Capacity Report 2024 |
| Emissions from Buildings | 313 ktCO₂e | 2023 LAEP Data |
| Retrofit grant access – domestic & non-domestic | TBC | To be confirmed |
These indicators are not necessarily the ones that produce the largest positive change. The optimal changes for reducing carbon emissions may be harder to measure (not travelling, not buying an item). The below indicators however are quantifiable and measurable, we can extrapolate that we are moving either toward or away from our goal of net-zero. These measures will be adjusted over time and measured annually to ensure we respond appropriately and proportionally to climate change .
Educate and inform – build understanding and knowledge within communities on the changes needed to reduce energy demand and decarbonise buildings. There needs to be education for residents on how to make best use of retrofitted buildings. We need to collaborate across educational institutions to address qualification and skills gaps. There is opportunity to include VCSE building owners in this; community buildings are as inefficient as our domestic housing stock.
Policy – using local policy levers to embed decarbonisation into developments within the County Borough. Collaborate regionally and nationally to contribute to the development of wider policy aimed at ensuring a just transition to net zero in the development and retrofit of buildings. Reduced energy demand can only be enhanced through the inclusion of energy storage systems and renewable energy production leading to energy security and resilience. Although policy structure can provide the guidance and background infrastructure to get to net zero, changing perceptions on what this means to everyday decisions will also require a change in public opinion to push those changes through to completion.
Net Zero Fire Station – SWFRS (South Wales Fire and Rescue Service) are working to decarbonise existing estate by removing gas heating and installing renewable generation where possible and striving to include sustainability and the environments as key objectives in any future redevelopment or refurbishment.
Construction will shortly begin on a new-build Fire Station at New Inn which will integrate renewable energy measures and ensure that the building fabric achieves contemporary thermal insulation targets. The scheme will aim to achieve BREEAM Excellent and be Net Zero Carbon (NZC) in operation and stand as an exemplar project within SWFRS’s Estate.
There will be 23 parking spaces, including three disabled bays and five electric vehicle charging stations, roof mounted solar panels. Five field maple trees will also be planted across the site, as well as a new hedgerow, shrubs, grass and a well-being area for staff and bat and bird boxes.
The inclusion of green spaces and considerations for local wildlife further enrich the project and as communities and services increasingly prioritise sustainability, projects like this serve as examples of how to balance functionality with environmental consciousness whilst being prepared for the current and future operational needs of the fire service.
Local, Trusted Supply Chains – support the building of local supply chains and skills to drive change in construction.
Lead by Example – Leverage public sector procurement and processes to decarbonise public buildings, contributing to the development of supply chains and skills development. We can lead by considering Nature Based Solutions on all new developments for carbon capture, insulation and climate resilience. Green solar opportunities to increase efficiencies of solar panels and provide places for biodiversity. Green roofs for climate resilience in ‘Later Living’ new developments – cooling properties in hotter weather to protect vulnerable residents.
Establish equitable funding – support residents and businesses to be able to make the changes needed to their buildings.
Ensuring all buildings are equipped to cope with occupant (business and personal) digital connectivity and technology needs.
Collaboration & Innovation – continue to work with all stakeholders to foster innovation which supports net zero buildings and construction methods.
Strategic highlight: ABUHB ReFit Programme – The opening 3 new clinical centres mean that energy use and carbon emissions from buildings have increased as the size of the estate and clinical activity increases across the Health Board by making efficiencies in the operation of the building services (lighting, ventilation, heating, and hot water) throughout the year we have mitigated emissions increase to 0.3% in 2024.
ABUHB Estates and Facilities have made considerable progress with energy performance contract development. Through competitive tender the ReFit Cymru Programme contract was awarded to Vital Energi Ltd. This long-term partnership delivers significant investment in low-carbon and renewable energy projects across the main hospitals and community premises in the coming years through several phases of work. This will contribute significant carbon savings towards the decarbonisation ambitions of the Health Board.
During 23/24 the Health Board completed Initiative 9 of the NHS Wales Decarbonisation Strategic Delivery Plan to optimise hospital building services. Heating, lighting and ventilation systems have been appraised and technical changes made to ensure that systems are running as efficiently as possible and operating only at times of occupancy. Current savings have been made in electricity and gas through these technical changes, delivering an annual carbon saving of 118 tonnes.
Caerphilly County Borough Council’s ‘Agenda for Change’ housing vision commits to new homes being built to be net zero carbon. Through retrofit of existing homes, the council will deliver climate resilient homes in response to the climate emergency. The five strategic priorities of this agenda are underpinned by the cross-cutting themes of (i) sustainable development; (ii) health and well-being; and, (iii) equality, diversity and inclusion.
CCBC have committed to developing a policy framework within the 2nd Replacement Local Development Plan (2RLDP) that presumes in favour of carbon friendly construction in residential, commercial and industrial developments. The building of new homes will use carbon friendly construction methods which result in a reduction in energy consumption in all new housing developments. The use of innovative housing techniques such as modular build and Passivhaus will be encouraged alongside utilising eco-friendly material to create highly efficient homes.
‘Later Living’ homes are being built with energy efficiency and low costs for the customers in mind. The development programme is currently in excess of 30 sites and delivery is anticipated to be phased over the next 10 years. Caerphilly Homes’ priority is the delivery of energy efficient, compliant homes which reduce energy costs for the customers.
The Sustainable Communities for Learning programme is a collaboration between the Welsh Government and the Local Authority. It is a long-term strategic capital investment programme with the aim of creating a generation of 21st Century Schools. The Minister for Education and Welsh Language announced that from 1 January 2022 all new–build, major refurbishment and extension projects requesting funding support through the Programme will be required to demonstrate delivery of net zero carbon in operation plus a 20% reduction on the amount of embodied carbon – the carbon emitted through construction materials and the construction process.
