The Retrofit Accelerator for Homes will provide financial support to the public sector to make “urgent” upgrades and improvements such as better insulation, low carbon heat and alternative power sources.
Under the programme, local authorities and housing associations will also benefit from expert advice and guidance on large-scale energy efficiency projects.
They can use the funding to improve the building fabric, i.e. walls, windows, floors and roofs, improve the heating system as well as install renewable energy technologies where possible.
Transformative retrofitting can help increase the value of homes – ultra-low energy homes retrofitted in Nottingham last year led to a 25% uplift in market value to £100,000 after the works, according to the Mayor’s Office.
London’s 3.5 million homes are responsible for around one third of the city’s greenhouse gas emissions.
The latest funding is part of a £34 million package to help London become carbon neutral by 2030.
Mr Khan said: “We are in the midst of a climate emergency which poses a threat to our planet and we can no longer delay the urgent action that is needed to address it. London’s ageing and energy inefficient homes are responsible for around one third of the capital’s greenhouse gas emissions and urgently need to be refitted.
“I’ve pledged for London to be carbon neutral by 2030 if re-elected. It is an ambition which requires forward-thinking local authorities and housing associations to commit to this dynamic new movement to transform social housing and take a significant step towards London meeting its zero carbon targets and help tackle fuel poverty.”