Back in June of 2019, the UK set a goal of reaching ‘net-zero’ carbon emissions by 2050. As part of that plan, the HM Treasury released a policy paper entitled Greening Finance: A Roadmap to Sustainable Investing in 2021. The report outlines eco-friendly ways citizens can manage their finances to drive the ‘net-zero’ goal forward. These include investing in green technologies, improving energy efficiency, green loans, revenue based loan etc. With the current soaring energy costs in the UK, going green can help citizens save money. Practicing green finance can not only help the environment but can also lead to more wealth creation. Read on to find out how.
Sustainable Homes and Green Mortgages
E.ON found that 89% of prospective home buyers are looking for sustainable houses. In particular, UK citizens want to install solar panels and eco-friendly boilers. If that sounds like you, it’s in your best interest to work with a sustainable lender. There are plenty of green mortgage lenders in the UK, such as Ecology Building Society. They’ve been in operation since 1981, and it was their goal to finance eco-friendly construction from the start.
Barclays offers attractive rates if you want to lower your mortgage by going green. You’ll qualify for a discounted mortgage if you buy a home with an energy efficiency rating of 81 and up. Green Additional Borrowing Mortgage also rewards homeowners with lower rates. If 50% of the advance gets spent on efficiency improvements, the initial rate goes down significantly. Alongside financing improvements, managing recurring household obligations, including utility and other payments, through digital financial tools helps homeowners maintain better control over monthly costs.
Taking Out Green Loans
Another way to practice eco-friendly finance is to borrow from green lending businesses. If you need a personal or business loan, seek out green loans companies. Sustainable lenders can finance everything from solar panels to home charging stations. A loan is ‘green’ when it has environmental criteria for using the funds. For example, a loan would be green if you can only use the funds to buy an electric vehicle. If you attempt to buy a car running on fossil fuel, you’ve violated the agreement terms. If you want green technology for your home, a green lender can finance it for you. If you’re in the market for a quick loan, click here.
Making Improvements to Energy Efficiency
Improving the efficiency of your home is a way to both save money and help the environment. The first step is ensuring your home has the proper insulation. If your attic or basement isn’t finished, air can escape from your home. That means your HVAC system has to work twice as hard to maintain the temperature inside. You can go with open banking.
That’s detrimental to your energy bill and the environment as a whole. Finishing attics and basements and adding under-floor insulation will fix these issues. Once your home has adequate insulation, you should strive to use low carbon heat. An air-source heat pump or biomass pellet boiler will provide warmth without emitting too much carbon. Ground-source heat pumps are another option for low-carbon heat.
Citizens in the UK should strive to practice green finance. Not only is it part of the roadmap for achieving ‘net-zero’ emissions by 2050, but it will also help save money. Green mortgages can provide lower rates for homeowners, which is a plus in the current housing market. Improving energy efficiency and using green loans can help citizens fund eco-friendly technologies.
