CashNews.co
Research from the Green Finance Institute (GFI) has found that replicating successful international approaches to retrofit finance could potentially reduce bills in 675,000 UK homes each year.
The analysis, titled ‘Unsecured Green Home Loans: Consumer Protection and Scale in International Markets,’ highlighted how international practices can help drive demand for energy efficiency in the UK.
The report welcomed the Department for Energy and Net Zero’s new steps for the Warm Homes Plan, designed to support retrofitting UK homes.
However, it noted that provisions must be made for low-interest loans and grants as outlined in the Labour Party manifesto to scale up financing for the 23.3 million privately owned homes, which contributed to 20% of the UK’s greenhouse gas emissions in 2022.
The GFI analysis compared the UK’s green loan market with that of other countries like Ireland, Belgium, and Germany.
It identified key areas to inform legislation and create pathways for a scaled unsecured green home loan market to support a more competitive green finance sector.
The unsecured green home loan market in Ireland has grown rapidly due to sustainability targets and consumer demand for green housing solutions.
The report indicated that if the UK adopted a Government-coordinated national programme similar to Ireland’s Home Energy Upgrade Loan Scheme, it could potentially support the retrofitting of up to 675,000 homes annually, which would exceed the Climate Change Committee’s recommended figures by 175,000.
Ryan Jude, Built Environment Programme Director at the Green Finance Institute, said: “The new government’s commitment to the Warm Homes Plan is welcome, to both reduce consumers’ bills and contribute towards our climate goals.
“By learning from successful international models on scaling up green home loan markets, the UK can quickly develop a government-backed scheme to significantly increase the number of energy efficient homes in the UK.”