Barclays has called on the Government to take significant action to decarbonise homes, asserting that without it, the 2035 target for an 81% reduction in carbon emissions compared to 1990 levels may not be met.
Homes represent around 15% of the UK’s carbon emissions.
The Government plans to implement a Warm Homes Plan, intending to improve energy efficiency for five million homes with an EPC rating below C.
However, Barclays stated that structural and behavioural barriers hinder retrofitting progress and that more needs to be done for the plan to succeed.
The Barclays Property Insights report, ‘Electrifying the future: boosting the energy efficiency of UK homes‘, outlined five recommendations for collaboration between the Government and the private sector.
Barclays suggested that the Government should set out a clear roadmap to achieve heat-pump adoption and improved efficiency, including a detailed plan with timelines and investment guidance.
The report called for the Government to establish a Retrofitting Delivery Authority to co-ordinate public and private efforts on retrofitting.
Barclays has recommended that the Government finalise EPC reform to enhance consumer and business confidence in adopting energy efficiency measures.
The bank also urged the Government to create a consistent consumer protection standard for key energy efficiency installations, helping to reduce risks for consumers.
To foster public support for energy efficiency, Barclays advised the Government to implement a robust public engagement strategy aimed at educating homeowners on the benefits of retrofitting.
Mark Arnold, head of mortgages and savings at Barclays, said: “The UK is no stranger to taking bold policy and infrastructure decisions to drive a successful energy transition.
“In the 1970s, government and industry successfully joined forces to transform the nation’s gas supply, making the UK a world leader.
“It’s ambition and drive on this scale that we’re calling on the Government to employ to electrify the UK’s homes.”
Arnold added: “Importantly this is not all about additional public spending commitments. It’s about increasing confidence and momentum.
“It’s about the Government working hand-in-hand with industry to deliver systematic change to the way we heat and cool our homes.”
