Tackling climate change and building a sustainable recovery from the coronavirus crisis are challenges that go hand-in-hand.

The financial services industry is ready to play its part in meeting these challenges, which include supporting the transition to a carbon-neutral economy by 2050. Reducing the carbon impact of housing, particularly existing homes, will be vital in achieving this. 

In his 8 July Summer Statement, the chancellor stated that the government wants a ?green recovery with concern for our environment at its heart?.  He then announced a £2 billion fund to retrofit homes with insulation, helping to cut carbon emissions. 

This is a welcome step towards ensuring homes, which are increasingly also our workplaces, will be fit for a low-carbon future and contribute to achieving net-zero emissions by 2050.  But is this a cure or temporary sticking plaster?

Beyond today's announcement, it is clear much more will need to be done to put in place a comprehensive package of public and private finance and a robust quality-based supply chain to deliver deep and lasting change in our housing stock.

To support this, UK Finance is continuing its work with the UK governments and key stakeholders such as the Green Finance Institute to identify and overcome barriers to home energy retrofit.

Among these is the need to establish a clearer link between energy or environmental performance and property value.  Increasingly, this will be important for mortgage lenders and borrowers as the regulatory and legislative framework for climate-related disclosures and energy/environmental performance develops.

Already, the Scottish government is looking at legal minimum standards for energy performance in owner-occupied homes; and the Westminster government is expected to consult soon on proposals for new requirements on mortgage lenders to report on the energy performance of their books. 

This all points to a policy direction of travel in which homebuyers, sellers, mortgage lenders and valuers will need to know a lot more about the environmental performance of the property.

Our work with the Green Finance Institute on this and overcoming barriers to home energy retrofit continues.  Look out for future blogs on this and our wider work on climate change and sustainability.