Reducing the cost of capital for household low-carbon investment decisions

Reducing the cost of capital for household low-carbon investment decisions

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This is a report supporting Meeting Carbon Budgets – 2014 Progress Report to Parliament (July 2014).

The supporting research considers how the cost of capital for household low-carbon investments can be reduced, in the context of helping the UK meet its carbon budgets through the uptake of low carbon technologies by UK households.

The report finds the following:

  • the cost and availability of finance is a barrier to the required rapid uptake of low-carbon technologies,
  • some financial products have low interest rates but availability is limited,
  • there are a range of barriers to lowering the cost of finance and increasing availability,
  • the Green Deal increases availability of finance by allowing loans to be secured through energy bills,
  • secured finance offers the lowest cost of borrowing, while Green Deal reform could be important for households who cannot access this,

The supporting research was written by Frontier Economics.