Private Low-carbon Investment: Green Finance Institute Report

Debate between Lord Hunt of Kings Heath and Lord Jamieson

Monday 9th December 2024 Lords Chamber

[Lord Hunt of Kings Heath (Lab)]

I agree with the premise of the challenge that we face. We responded positively, as do I, to the proposals made by the Green Finance Institute, which is why we are working on this seriously and discussing it with it, and we will be looking at the outcome of the pilots in commercial properties that the GFI is going to take forward in the next few months. But I have to point out to the House that this is not easy. Current experience suggests that unless you can ensure that a scheme is easy for people to understand and know what they are getting themselves into, and can offer competitive interest rates, it is not going to fly. We need to make this a credible scheme.

[Lord Jamieson (Con)]

My Lords, I refer to my interests as set out in the register. How do the Government plan to balance the drive for low-carbon homes with the risks of increasing housing costs or creating barriers for those already struggling in the housing market?

[Lord Hunt of Kings Heath (Lab)]

My Lords, that is an interesting question. Clearly, one issue about taking forward such a scheme is that one does not want to make it difficult for people to sell their homes. Again, I suggest that evidence from the US shows that, although the intention was for the charge to stay with the property, when it came to individuals, many sellers wiped off the charge to make the sale realisable. We need to keep a careful eye on ensuring that if we introduce such a scheme we do not have a negative impact on the housing market in the way the noble Lord has suggested.