Green Deal Will Fall Short Warn Climate Advisers

According to the Committee on Climate Change, the Government’s flagship energy efficiency Green Deal scheme will be a failure, reaching only 2-3 million homes

Set to radically transform the energy efficiency of 14 million homes across the UK, the Government’s climate advisers have warned that the scheme will fall short of its targets.

In an open letter to Energy Secretary Chris Huhne, which was published yesterday, the Committee on Climate Change (CCC) criticised the Government’s policy.

Set to be launched in October 2012, the Green Deal will enable homeowners to make their homes more energy efficient by taking out loans to pay for cavity wall insulation and loft insulation amongst other home improvements. What sets the scheme apart is the guarantee that the savings made on energy bills will always be greater than the loan repayments.

While energy companies currently have a legal obligation to help their customers improve the energy efficiency of their homes, the Green Deal is set to remove that obligation. However, the chief executive of the CCC, David Kennedy, believes doing so will propose a significant risk.

“We think there is a significant risk in leaving it to the market, as that has never worked anywhere in the world and is unlikely to happen in the UK. We are talking about the transformation of the entire building stock of this country.”

With fears that the implementation of insulation measures will be limited under the currently proposed approach, the letter penned by the CCC should not be overlooked, as shadow climate change minister Luciana Berger MP pointed out:

“With little more than 10 months until the green deal launch is expected, minister’s plans are in chaos. The [CCC] letter casts serious doubt about whether consumers will actually take up the scheme.”

According to the Government’s impact assessment, there are numerous factors which will limit interest in the Green Deal scheme. Aside from the hassle involved and the fear factor surrounding cowboy contractors, take up will be limited because people will remain in the dark in terms of the benefits of the scheme on both their homes and their energy bills.

You can read the open letter published by the Committee on Climate Change by clicking here.

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