London Climate Action Week
Last month, London Climate Action Week (LCAW) brought together some of the greatest minds and visionaries in sustainability.
It was an action-packed week. With over 700 events and 45,000 attendees, LCAW 2025 more than doubled its participation from 2024. There were big political commitments, broadcasts on mobilising green finance, roundtables, workshops, and plenty more.
UK Energy Secretary, Ed Miliband, delivered a flagship speech, where he pledged to turn Britain into a “clean energy super power” by investing £30 billion per year through 2035.
But what does all this mean for the commercial property sector?
In this article, we unpack three key takeaways from LCAW 2025. Together, they tell a clear story of how the commercial real estate sector is set to change. The UK government has drawn a line in the sand and a shift has started from “green as a bonus” to “green as a baseline”. Investors, developers, and tenants alike will have to keep pace with policy if they want to remain competitive.
1. Rising Demand for Efficient and Electrified Buildings
The government is pushing for energy efficiency, in particular through electrification of the building stock. Given that 80% of 2050’s building stock is already in circulation, retrofits are set to become a cornerstone of future property investment.
And with electricity demand set to double by 2050, landlords who invest early in electrification and energy-efficient upgrades will gain a clear competitive edge. These retrofits pave the way for advanced technologies such as heat pumps, electric vehicle (EV) charging infrastructure, and smart energy management systems.
2. Streamlined Planning Permissions
The government also has grand plans to streamline the country’s planning processes. This could potentially unlock thousands of delayed development projects, including key commercial real estate sites.
Central to this effort is a new digital spatial planning tool, set to launch in July 2025. It will map “headroom” for electricity and water capacity, helping identify those areas which can realistically accommodate new projects. For investors, this could be a game changer, offering reduced early-stage planning uncertainty.
As government planning becomes clearer and infrastructure risks decline as a result, investor confidence is likely to rise. When coupled with targeted investment zones and clean energy clusters, commercial real estate looks well-positioned for a sustainability-led boom.
This could create the conditions for rapid market transformation – one that landlords and developers must be ready to meet head on. 3. Competitive Energy Costs & Increased Tenant Expectations.
In an attempt to keep electricity costs low, the UK government is introducing new support measures aimed at reducing industrial energy costs, namely through the British Industrial Competitiveness Scheme (BICS).
Launched during LCAW 2025 as part of the governments 10-year Industrial Strategy, BICS is set to take effect from 2027. It offers exemption from green energy levies over 7,000 energy-intensive businesses, potentially slashing their electricity costs by up to 25%.
The effects of this will be felt at tenant-level. For energy-intensive industries, reduced energy costs mean reduced operational costs. This improves tenant profitability, making properties in those energy-intensive sectors more attractive to lease.
At the same time, as tenants grow more energy-conscious, buildings equipped with energy-efficient features and designed to reduce utility costs will better meet their rising expectations. This creates a clear competitive advantage for landlords who invest proactively invest in sustainable infrastructure and smart energy systems, as they stay ahead of evolving market demands and regulatory requirements.
Ultimately, London Climate Action Week 2025 served as a launchpad for a wave of policy clarity that will reshape commercial real estate for the better. Stakeholders who electrify, retrofit, and align with clean energy ecosystems will not only meet policy requirements, they’ll capture new markets, increase asset value, and build long-term resilience.