An analysis of the impact of increasing climate change on the commercial building industry, its effects on the market and future strategies of 'EH SmithIntroductionOne of the frightening environmental concerns is the buildup of carbon dioxide (CO2) in the atmosphere resulting from intensive use of fossil fuels. This blanket of carbon dioxide traps solar radiation, leading to an increase in Earth's average temperature. In the UK, climate change is likely to lead to warmer temperatures, wetter winters and drier summers, as well as rising sea levels, leading to flooding in coastal areas (Boyd et al 1998). As one article states (Habitat International 1995), "the construction industry, and the materials industries that support it, are one of the world's largest exploiters of natural resources, both physical and biological." The Department of Trade and Industry (DTI) says that, simply to maintain existing stock, industry "produces around half of the UK's carbon emissions and the biggest action is to improve efficiency energy from new and existing stocks. Buildings consume 40% of energy and produce 40% of CO2 emissions (DTI 2004) to reduce high CO2 levels. EU and UK governments have introduced tougher energy efficiency standards, which will be felt by builders and traders; the latter will benefit from the increased demand for insulation materials, but will also have to bear additional costs. The main impacts of the construction industry on climate change are that the cement sector alone accounts for 5% of global human-caused CO2 emissions (Piltz 2005), with the largest impact being mining /manufacturing of materials and chemicals, transportation of heavy materials such as cement. is energy intensive, but most building materials tend to come from nearby facilities. Chemical processes and fuel/electricity use account for the majority of the sector's CO2 emissions. The effect of CO2 emissions (climate change) on the UK merchant builders industry and EH Smith Ltd. The main impacts of climate change on the construction industry; Weather-related impacts: flooding, coastal erosion, subsidence and drainage systems require new construction techniques and materials to withstand adverse weather conditions; influences the choice of site. Cost of financing/insurance: The insurance industry is starting to factor the impacts of climate change into its premiums. The sector has not yet put systems in place to ignore climate change risk mitigation, but it could be pushed to do so through building industry initiatives. Businesses will be interrupted by wetter winters (Kruse 2004). With the new sustainability approach in force, it creates great opportunities for the commercial construction industry..