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Green Finance Institute’s Coalition for the Energy Efficiency of Buildings releases first report on scaling-up retrofit financing

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Credits to Green Finance Institute

The report demonstrates the urgent need to increase the pace and scale of investment into the energy efficiency and resilience of UK residential buildings and sets out a portfolio of financial solutions to catalyse take-up on a national scale, with the potential to contribute substantially to a post-Covid-19 green and inclusive economic recovery.

 

The UK’s building stock is responsible for approximately 30% of the country’s total greenhouse gas emissions, and the failure to decarbonise our built environment could result in a 40% shortfall to our economy-wide decarbonisation targets by 2030[2]. Meeting the UK-wide target for as many homes as possible to achieve an Energy Performance Certificate (EPC) rating of C by 2035 will require a total investment in energy efficiency upgrades of up to £65 billion. 

 

The Green Finance Institute is confident, however, that a synergy can be forged between the parallel needs of lowering emissions and rebooting the economy in response to the coronavirus pandemic: firstly, the scale of works necessary will support more than 150,000 skilled and semi-skilled workers across the hard-hit construction supply chain, especially in areas already facing higher levels of unemployment and higher energy bills; secondly, energy efficiency upgrades are relatively quick to install, meaning investment can be stimulated rapidly; and thirdly, the resulting household energy cost savings can translate into increased consumer spending, thereby supporting the wider recovery.

 

The Coalition found that each housing tenure analysed – owner-occupied, private-rented and social-rented – had distinct decision-makers with specific barriers to retrofit, many of which connect to the lack of attractive or available finance.