Finance solution to help Manchester homes make upgrades

Greater Manchester Combined Authority (GMCA) is partnering with the Green Finance Institute (GFI) to unlock funding for energy efficiency improvements in thousands of households across the region.

The Authority has identified lack of finance as a main barrier to people making energy-efficiency improvements such as insulation, low-carbon heating and climate resiliency measures.

The partnership between the GFI and GMCA aims to address this challenge by enabling homeowners and landlords to access attractive sources of private and blended finance to fund these kinds of upgrades. This will help to reduce energy use, lower utility bills and support Greater Manchester’s drive to reach carbon neutrality by 2038.

Through this partnership, the GFI will work with financial institutions, retrofit specialists and local organisations to pilot a series of financial solutions that are designed to provide a blueprint for other local authorities across the UK to follow in the years ahead.

This includes the development of green mortgages as well as a property linked finance scheme, similar to the PACE model in the US. GFI will also collaborate with institutional landlords to promote a new type of tenancy agreement incorporating energy efficiency (green rental agreements).

Councillor Martyn Cox, lead for green city region and waste, said: “It’s clear that the need for action to address the climate emergency is urgent and in Greater Manchester we’re committed to doing everything possible to play our part. A key part of this is lessening how reliant our homes are on high carbon fuel and making them more energy efficient. However, it’s crucial that as we become greener, we become fairer, so people are not left behind. That means making sure people are less reliant on carbon intensive energy at home, whilst reducing their energy bills. This partnership will look at doing just that, and will find the funds and support people need to help them make the changes we need to see.”

Emma Harvey, programme director for the Green Finance Institute’s built environment programme, added: “Local Authorities have a deep understanding of their residents’ needs and increasingly recognise the opportunities to work with the private finance sector to deliver access to finance for their citizens. We are excited to collaborate with GMCA and the market to pilot a portfolio of innovative financial solutions the GFI has been developing since its inception in 2019, demonstrating a new model for local authorities across the UK.”