The Green Deal is a new environmental policy included in the Energy Act 2011 and also in the the Climate Change Programme – launched in November 2000 -, the UK Government is going to introduce in October 2012 – although its conceded it will not get into full swing until 2013 -.
Around a 25% of the UK’s carbon emissions comes from the energy used in homes and a similar amount comes from businesses, industry and workplaces. The target of the Green Deal is to make those emissions to decrease by 2050. This innovative measure aims to reduce carbon emissions cost effectively by improving the energy efficiency of British properties, encouraging UK residents to consume less energy, and, as a consequence, waste less money.
The idea of the Green Deal is that improvements will be financed through loans attached to the energy bills of the improved properties. The loans would come with the promise that consumers would save money on their electricity bills, including repayments, so the costs of the loan repayments would be lower than the savings from the upgrades, but this will be a guideline and not legally enforceable guarantee. (more…)