Although I’d like to see further, faster progress towards net zero and a green economy, the first global commitment to transition away from fossil fuels was a significant step forward. Stronger international support for speeding up the switch to renewables was another positive.
With a General Election guaranteed this year, we can expect plenty more public pledges with the potential to have an impact on the lives of all of us.
Let’s hope meaningful action follows the big policy statements made at home and abroad; to bring real progress this year.
Still much to do
And when the path to net zero can look long and arduous, it’s important to remember there are so many smaller actions each of us can take at an individual level.
I’d love 2024 to be a year where our industry steps up to help homeowners do this and tackle the UK’s massive retrofit challenge. Retrofitting the country’s ageing housing stock must remain an urgent priority and mustn’t be delayed.
Yes, upgrading the UK’s draughty, poorly-insulated homes carries a cost but this won’t be money wasted – it’s an investment in the future, both for homeowners and the planet.
As well as cutting carbon emissions, better insulation and heating systems will bring down domestic fuel bills, a swift and very tangible benefit.
Homeowners will welcome savings here when faced with the ongoing cost of living crisis and persistent high inflation. Many will see their budgets squeezed further by the payment shock of rising monthly repayments when current mortgage deals mature.
Suitable green mortgage options
While the government has increased the value of grants available for green home improvements, home loans are essential too. Lenders must become more active in this market to offer wider choice.
The public’s appetite for ethical and sustainable financial products only continues to grow. To meet this demand more providers and new products are needed. In embracing commercial opportunity for their businesses, lenders and brokers can support more customers to make positive changes.
The green mortgage market is still a young sector. As it grows, brokers are well-placed to guide their clients to find the sustainable finance products to meet their needs.
Part of that might be cutting through the greenwash, so I was pleased to see the Advertising Standards Authority has already cracked down on unfounded “green” claims by businesses in recent months.
Now the Financial Conduct Authority is in the process of updating its guidance on green mortgages to ensure sustainability information is clear, fair and can be substantiated. We’re responding to the FCA’s ongoing consultation on this topic and welcome better support for consumers and their financial advisers.
The guidance is due to be introduced this summer. Giving greater clarity and more robust evidence to empower more informed consumer choices can only be a good thing for the year ahead.
