The Green Finance Institue have published a new report titled "Financing energy efficient buildings: the path to retrofit at scale". The report sets out various pathways to improve domestic retrofit in the UK, outlining 52 "demonstator" projects that could help to unlock investment in the energy efficiency sector.
In December 2019, the Green Finance Institute established the Coalition for the Energy Efficiency of Buildings to stimulate action across the finance sector to support the decarbonisation of our homes. In line with the Institute’s theory of change – which focuses on creating opportunities for the financial sector to profitably support the transition towards an environmentally sustainable economy – the Coalition is developing the market for financing net-zero and resilient homes, through the co-design and launch of viable and impactful financial ‘demonstrators’ that provide that catalyse further financial innovation at scale.
This report outlines the results from the Coalition’s first phase including a focused review of the domestic retrofit market, a portfolio of ‘demonstrators’ that were developed by the 52 member organisations to unlock the barriers to investment, and policy recommendations that establish a conducive environment for rapid adoption and scale-up of energy efficiency improvements.
Energy Minister, Kwasi Kwarteng, said of the work of the coalition:
The work carried out by the Coalition for the Energy Efficiency of Buildings represents a positive step towards achieving our Green Finance Strategy ambition to build the market for green home finance. The proposed demonstrators aim to support the development of innovative products to finance energy efficiency and build a vibrant market for energy retrofit. This will support the UK in delivering its commitment to move towards net zero whilst growing our economy.
In the UK, our built environment is responsible for almost 30% of total greenhouse gas emissions and as such, improving domestic retrofit pathways and the energy efficiency of our buildings will be key to meeting climate targets.