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Carbon targets could be missed says WWF green building report

Posted: 02/04/2008

A new report by WWF-UK shows that without a radical shift in government policy the UK is set to miss out on the biggest opportunity to cut household energy bills, and reduce CO2 emissions.

The first ever modelling of the country's entire housing stock shows that solid wall insulation and low and zero carbon technologies such as ground source heat pumps and solar water heating are key to greening our homes and getting the UK on track to meet its emission reduction targets for 2020.

Current government policy is heavily reliant upon homeowners installing measures it defines as 'cost-effective'. These include cavity wall, loft, and hot water cylinder insulation, draught proofing, efficient boilers, and heating controls. WWF's How Low? report shows that even if all homes did install these measures, household CO2 emissions would be reduced by just 22%, failing to meet the government's own 2020 climate change targets.

WWF-UK wants the government to introduce a range of financial incentives that will motivate more homeowners to improve the energy efficiency of their homes. These could include low interest loans, council tax rebates or stamp duty relief tied to home energy efficiency refurbishments, and robust feed-in tariffs which reward homeowners who generate their own electricity from micro-renewables. Some of these schemes have already been successfully introduced elsewhere in Europe.

There should also be a revision of the obligations on energy suppliers to ensure they support the roll out of solid wall insulation and low and zero carbon technologies.

The Federation of Master Builders (FMB) has welcomed WWF's report, especially the recommendation of a cut in VAT on the refurbishment of existing properties.

Brian Berry, Director of Affairs Director at the FMB said, “I am delighted that the WWF has concluded that one of the best ways to reduce carbon emissions from UK homes is by reducing VAT on repair and maintenance work. Currently the VAT rates are heavily weighted in favour of demolition and new build as opposed to refurbishment – zero per cent VAT on new homes but 17.5 per cent on the renovation and repair of existing homes.”

Berry continued, “While it is relatively easy to build zero-carbon homes, it is harder to retrofit the existing housing stock. Homes contribute 27 per cent of the UK's total carbon emissions but existing grants and long pay back periods offer little incentive for householders to make their homes more energy efficient.

Reducing the level of VAT from 17.5 per cent to 5 per cent on repairs and maintenance to existing buildings would provide the kick start that is currently needed to encourage every householder to make their home green. All we need now is action from Government!”

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