NEWS
Green Deal faces challenges

UK business organisation CBI said there are a number of challenges that must be tackled if the Green Deal and Energy Company Obligation (ECO) are to be a success

For the Green Deal and ECO to deliver cost-effective emissions reductions and drive public sector growth, CBI today said in its response to the consultation that the government needs to make the deal as consumer-friendly as possible and offer vouchers for early adopters.

Rhian Kelly, CBI director for business environment, said: ‘Without demand we haven’t got a Green Deal. Businesses are ready to work with the government to excite and incentivise consumers, by emphasising the cost-saving as well as the carbon-saving benefits.

‘The Green Deal has the potential to play a key part in the UK’s transition to a low-carbon economy. If successful, the Green Deal will be a win-win policy.’

CBI calls on the government to make cost-effectiveness a priority if it wants to meet the Golden Rule – which is the anticipated cost savings for consumers being greater than or equal to annual charges.

Kelly added: ‘While the CBI supports a rigorous accreditation system for assessors, providers and installers, the government must not allow the pendulum to swing too far towards costly regulation.’

She warns that this could lead to higher costs for the consumers, which could potentially undermine the whole scheme.

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