Consumer Finance for low-carbon investments
The UK Committee on Climate Change (CCC) recently published a Frontier report on how the cost and unavailability of finance is inhibiting the take-up of new low-carbon technologies amongst consumers. This bulletin examines the market for low-cost finance, and suggests ways in which the existing “Green Deal” incentives could be improved.
To meet its ambitious targets for carbon reduction, the UK Government needs to secure big changes in consumer behaviour, leading to much greater energy efficiency, the use of renewable heat sources and electric cars. But the investment needed to make these changes is beyond the reach of many consumers, who lack access to low-cost finance. The “Green Deal” scheme introduced by the Department for Energy and Climate Change (DECC) to address this problem has achieved a very low take-up so far.