Increase pace of energy efficiency in UK buildings

The Coalition for the Energy Efficiency of Buildings (CEEB) has emphasised the urgent need to increase the pace and scale of investment into the energy efficiency and resilience of UK residential buildings.

Established by the government and City of London Corporation-backed Green Finance Institute in December 2019, the report, Financing energy efficient buildings – the path to retrofit at scale, also sets out a portfolio of financial solutions to catalyse take-up on a national scale, with the potential to contribute substantially to a post-coronavirus green and inclusive economic recovery.

The UK’s building stock is responsible for approximately 30 per cent of the country’s total greenhouse gas emissions, and the failure to decarbonise our built environment could result in a 40 per cent shortfall to our economy-wide decarbonisation targets by 2030. The CEEB says that 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.

Rhian-Mari Thomas, chair of the CEEB, said: “Citizens, communities and economies are facing the two greatest challenges of our times: climate change and the Covid-19 pandemic. The response to both these crises is rooted in science and innovation, as we seek solutions to monitor, mitigate and adapt to the impacts of coronavirus and our changing climate. The role of our financial system is also increasingly recognised as essential in facilitating those solutions, while also helping to create a more inclusive and sustainable global economy.

“In line with the Green Finance 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 for the Energy Efficiency of Buildings 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 the catalysts for further financial innovation and scale.”