Source · Select Committees · Environmental Audit Committee
Recommendation 13
13
Acknowledged
Paragraph: 71
In response to the Committee’s report on Energy Efficiency of Existing Homes, published in March...
Recommendation
In response to the Committee’s report on Energy Efficiency of Existing Homes, published in March 2021, the Government said that it was considering what further action might be required to catalyse the market for a wide range of attractive and low-cost green finance products. Yet it said that the variation of stamp duty rates to incentivise green mortgages was not being considered, as to do so would risk the Exchequer’s revenue. We recommend that the Government direct the Energy Efficiency Taskforce to seek stakeholder views on how variations to the rate of stamp duty could be used to progressively incentivise energy efficiency improvements without jeopardising tax revenues.
Government Response Summary
The government is prioritizing catalysing the market for Green Finance, citing the Green Home Finance Innovation Fund and the Green Home Finance Accelerator programme, and notes that the Energy Efficiency Taskforce will advise on stimulating investment.
Paragraph Reference:
71
Government Response
Acknowledged
HM Government
Acknowledged
33. Catalysing the market for Green Finance is a priority for Government to help support homeowners not eligible for grants with the upfront costs of improvement. Our £1.8m Green Home Finance Innovation Fund, which completed in March 2022, was a key early step in supporting the lending community to design, develop and pilot green finance products for homeowners. This has been followed by the Green Home Finance Accelerator programme, which launched in October 2022. The competition will make up to £20m available on a competitive basis to support the development of innovative green finance products and services which will allow homeowners to meet the upfront cost of decarbonising their homes and improving thermal comfort. 34. We are also working with the new UK Infrastructure Bank to explore whether they can play a wider role in scaling up green home finance in the future. 35. The Energy Efficiency Taskforce will advise and work with ministers on delivery of the government’s ambition to reduce total UK energy demand by 15% from 2021 levels by 2030, across domestic and commercial buildings and industrial processes. The Taskforce will have a particular focus on the role of the private sector and the stimulation of investment. 36. The first meeting of the EETF will be held in March, where members of the EETF will begin developing their workplan.