The UK Government should establish a unit to deliver energy efficiency improvements and link Energy Performance Certificates to business rates to incentivise green investments.
That’s according to a new report from Policy Exchange, which says a new approach is needed to reduce carbon dioxide emissions and improve business productivity.
It also suggests existing tools like the Energy Saving Opportunity Scheme can be better utilised and should be extended to public sector institutions where the potential to save energy is large and cost-effective, like the National Health Service and the Ministry of Defence.
The proposed energy efficiency unit would aim to bridge the gap between viable projects and available capital, as well as offering expertise, certification and finance for private and public groups.
The report recommends interventions should focus on landlords rather than tenants as they have more power and more at stake.
Joshua Burke, Energy and Environment Research Fellow, said: “Improving energy efficiency is amongst the easiest and cheapest ways to decarbonise our energy system.
“It needs to be seen as a major strategic investment which is both good for the environment and good for profitability.”