The Greater Manchester Combined Authority (GMCA) have partnered with the Green Finance Institute (GFI) to offer financial solutions aimed at delivering home energy efficiency improvements. 60,000 homes across the region will be supported using public and private sector finance which will unlock funding for owner-occupied and privately rented homes in the area.
Why is the trial being launched?
With the ongoing energy crisis hitting consumers hard and extreme weather conditions drawing attention to the sincerity of climate change, environmental progress has never been more integral to growth. Energy supply emissions, referring to emissions generated from fuel combustion for electricity and other energy productions, accounted for 21 per cent of all emissions in the UK in 2020, making an excellent case for improving the energy efficiency of buildings in the quest to cut emissions.
What’s involved?
The trial will include the issuing of a green bond from the GMCA. Individuals, businesses and local authorities can invest in a GMCA green bond and any proceeds raised will be channelled into emissions-reduction projects across the area. Green mortgages will also be offered, incentivising buyers or landlords to renovate buildings by offering a lower interest rate or access to larger loan quantities.
Property owners will also be able to sign up for support to pay for energy efficiency projects for their buildings. The money will then be repaid through the property tax bill, with repayment obligations transferring to the new owner if property is sold. This system reflects successful practices for greening commercial buildings in the US under their Property Assessed Clean Energy (PACE) scheme.
The need to retrofit homes
Poor availability of finance is commonly cited as one of the key barriers for property owners looking to retrofit their homes, leaving a gap for new support schemes aimed at addressing this problem. By allowing property owners to access new sources of finance designed to assist with energy efficiency upgrades, energy use will reduce along with utility bills.
Local authorities are being relied upon to reduce greenhouse gas emissions, with recent polls conducted by UK100 finding that the majority of the UK public are amenable to giving local authorities more powers to reduce emissions, paving the way for further development of schemes across the UK, much like this one launched by the GMCA and GFI.
If you are considering retrofitting your building but aren’t sure about the finance available, submit an enquiry here and one of our advisors will be in touch.
