Green mortgages will be introduced to the UK market in a bid to cut emissions and energy bills, the government has announced.
As part of its new Green Finance Strategy, the government has opened a £5 million fund to support the financial industry in offering green mortgages and other green finance products.
These ‘green’ mortgages will offer customers discounted rates provided they ensure their homes are energy efficient.
The UK recently became the first major global economy to commit to producing net zero emissions by 2050. To achieve this, it’s vital that the energy efficiency in 17 million homes across the country improves - with many households currently having an Energy Performance Certificate below Band C.
The government also intends to launch a £10 million innovation fund which aims to offer companies a financial reward for designing innovative ways to improve energy efficiency in Britain’s oldest homes.
With domestic households currently making up around 15% of the UK’s total carbon emissions, making homes more efficient is essential for the government to reach its 2050 target.
Chris Skidmore, Energy and Clean Growth Minister, said: “To fulfil our world-leading commitment to reach net zero emissions by 2050, we need an overhaul of our housing stock to tackle the disproportionate amount of carbon emissions from buildings.
“By rolling out more green mortgages and reducing the costs of retrofitting older homes we’re encouraging homeowners to improve the efficiency of their homes and save money on their energy bills, helping to ensure everyone has access to a warm and comfortable home.”
