Place-based public procurement for a low-carbon future: Regional economic impacts of retrofitting – Net Zero Go
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Place-based public procurement for a low-carbon future: Regional economic impacts of retrofitting

Using the West Midlands as a case study, this report examines how place-based public procurement could increase the economic benefits of housing retrofit programmes that bring homes to EPC Band C or above to reduce emissions from the housing sector and support the UK’s Net Zero targets.

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Provided by: Connected Places Catapult

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Capability and skills Procurement Building decarbonisation and retrofit Domestic retrofit measures

Net Zero Go says:

This report finds that most regions, including the West Midlands, are off track to achieve EPC Band C retrofit targets without major acceleration. The research estimates £12.2 billion of investment is needed to reach Net Zero by 2050 in the West Midlands, rising to £21.2 billion for a 2040 pathway.

For local authority officers, the key message is that procurement strategy matters as much as funding. Place-based procurement that strengthens local supply chains can retain far more economic value locally, creating jobs and supporting regional growth while delivering Net Zero objectives. Investing in skills, innovation, and supply chain capacity is critical to maximising these benefits.

Place-based public procurement for a low-carbon future: Regional economic impacts of retrofitting

This IPEC research brief examines how place-based public procurement could increase the economic benefits of housing retrofit programmes while supporting the UK’s Net Zero targets. Using the West Midlands as a case study, the report highlights the scale of retrofit activity required to bring homes to EPC Band C or above and reduce emissions from the housing sector, which currently accounts for a significant share of UK greenhouse gas emissions.

The analysis shows that current retrofit delivery is far below what is needed to achieve national targets. Most English regions, including the West Midlands, are unlikely to meet EPC Band C goals by 2030 or 2050 without substantial acceleration in investment and delivery.

Modelling suggests that achieving Net Zero in the West Midlands could require investment of £12.2 billion by 2050, rising to £21.2 billion under a faster 2040 pathway. Such investment could generate between £16.8 billion and £22 billion of UK economic output and support 102,000–135,000 jobs.

A key finding is that procurement strategy has a major influence on where economic benefits are realised. Local procurement approaches that strengthen regional supply chains can retain significantly more economic value, jobs, and gross value added (GVA) within the region than conventional procurement models. The report concludes that procurement, skills development, innovation, and supply-chain growth must be aligned to maximise both decarbonisation and regional economic benefits.

Key takeaways for local authorities

Local authorities have an important role in ensuring retrofit investment delivers both carbon reductions and wider local economic benefits. Key considerations from the report include:

  • Retrofit delivery will need to accelerate significantly if EPC and Net Zero targets are to be met, requiring local authorities to scale up programmes and partnerships.
  • Procurement decisions can influence where economic benefits are captured, making local supply-chain development a strategic priority rather than simply a delivery consideration.
  • Embedding social value and local economic outcomes within procurement processes could help retain jobs, skills, and investment within local areas.
  • Skills shortages and supply-chain capacity may become major barriers to delivery, requiring investment in workforce development and training.
  • Local authorities can use retrofit programmes to support wider economic development goals, including job creation and growth in green industries.
  • Better coordination between housing, climate, procurement, and economic development teams will be needed to maximise outcomes.
  • Strong local and regional innovation ecosystems can help authorities capture greater long-term value from retrofit investment.
  • The findings strengthen the case for place-based procurement approaches that align Net Zero objectives with inclusive regional growth.

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