A new report from Bankers for Net Zero, calls on the government to implement policies that will support the financing and roll out of energy efficiency retrofits in UK homes in order to reduce energy bills, support green jobs and deliver on UK’s net zero targets. The report, developed with WPI Economics and sponsored by HSBC UK, stresses that the UK must urgently address emissions from its building stock to meet its climate targets. The built environment has seen limited progress in emissions reductions in recent years, which is in contrast to the significant progress made on the decarbonisation of power.
This, however, can be addressed though policies that drive greater public-private collaboration and unlock private finance that support household retrofitting. A new policy framework is needed to deliver the necessary energy efficiency measures and low carbon heating in households – ensuring government, banks, housebuilders and local authorities work closely together. Report recommendations include the enabling of property linked finance and stamp duty based incentives to overcome barriers associated with costs of retrofits. In addition, work must be done to ensure local and regional governments have the tools and funding needed to support the green transition.
Households should be empowered to take the necessary steps to retrofit their homes. There is currently low awareness about energy efficiency measures. As indicated by the report, implementing new energy efficiency measures in homes could save households GBP600 a year in energy bills and provide 350,000 additional green jobs, as well as deliver on the UK’s net zero targets. The report comes as the issue of energy efficiency has risen rapidly on the UK government’s agenda. In November’s Autumn Statement, the government committed to address energy efficiency with new funding and a new taskforce.