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Report Highlights Potential Impact of EPC Regulations on I&L Sector

by Mich M.
01/26/2025
in Sustainable Logistics

A new industry report titled BIG Things in SMALL Boxes 2024, produced by property company Potter Space in partnership with Savills, offers a detailed analysis of the sub-100k square foot warehouse market in the UK. The report indicates a positive outlook for the sector, with rising demand anticipated. However, it highlights that supply is struggling to keep pace, leading to a 38% suppression in demand across the country as businesses face challenges in securing the warehouse space necessary for growth and expansion.

The report also raises concerns about the upcoming Minimum Energy Efficiency Standards (MEES) regulations, which are expected to further exacerbate the situation. By 2027, I&L facilities will be required to have an Energy Performance Certificate (EPC) rating of at least C to be eligible for leasing. Currently, 47% of small to mid-sized warehouse spaces do not meet this standard. Additionally, by 2030, when the required EPC rating will increase to B, up to 85% of these facilities could become unlettable.

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The report emphasizes the need for immediate action in response to the impending regulatory changes. It calls for a clear and achievable roadmap that includes available funding and government support to assist property owners and occupiers in meeting the new energy efficiency standards.

The report also discusses the potential for solar energy to improve the sustainability of the sector. It suggests that utilizing available roof space on small to mid-sized warehouse facilities for photovoltaic panels could generate enough power to support up to 4.3 million homes.

The findings underscore the challenges and opportunities facing the industrial and logistics (I&L) sector as it navigates the evolving landscape of sustainability regulations.

Discover in-depth supply chain report news insights at The Supply Chain Report. For international trade tools, see ADAMftd.com.

#SustainableLogistics #EPCRegulations #EnergyEfficiency #WarehouseSustainability #LogisticsSector

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