Enjoy the sunshine? But how do we keep it in check? Want to help?

Green investment firms this is for you.

Following on from our recent blog (Can FinTech alleviate global crises?) now is a good time to look more closely at what we can all do to protect ourselves and our planet from the extreme heat we have just experienced.  Climate Change won’t wait for us to sort out a cost of living crisis or a war, it is moving fast, no matter what else is going on around it.  So let’s adopt a positive approach.  Right here and right now, we are calling on strategic partners to help us play our part in helping the planet.  If you are in the financial services industry focused on supporting green initiatives, read on.

The Climate Change Committee (CCC), an independent body advising on climate policy, recently published its annual review of progress.  It talks about the positives like the UK forging ahead on renewable energy and the promotion of electric vehicles but, needless to say, it highlights so much more that needs to be done and quickly.

When you look pragmatically at the issue, the sentiment is there.  Generally, people now understand that the choices they make are impacting our planet and will have consequences later for their children, grandchildren and beyond.

We all want to do the right thing but it is not always possible for genuine reasons.  For example, on MoneySavingExpert, it says “Never borrow from solar companies to pay for the panels.  Some installers let you buy solar panels on credit. If you don't have the cash upfront, panels aren't for you. The loan's interest could dwarf the savings.”  A valid point if the decision was based on financials alone, but it isn’t.  This is the crux of the issue, we have to find a way to help people make the right decisions without flooring themselves financially.  Whether it is solar panels, heat pumps, electric cars or insulation, we have to make the right decision easier.

So how can we bridge the finance gap?  This has to be the role of the FinTech industry.  Firms, like Madiston specifically, have the ultimate technology for low cost borrowing.  The tech provides so much automation, that is sustainable even at low margin levels.  What we need is one or many finance firms with funds aimed at green investment, to help us launch a Direct Loan Exchange for individuals to get help to do the right thing and make those greener decisions.  This could be a lender led “pitch” so that individual borrowers matching your criteria, can apply for your funds using properly low-cost loans to bridge the gap between government support and the cost of implementing the right climate-friendly solutions for their homes, work premises and their vehicles.  This way green funds can be deployed again and again to support climate change targets.

The Climate Change Committee make many recommendations in their report.  They talk about increasing the awareness of Government schemes, local providers who can undertake assessments of home energy performance, and bespoke support for households wishing to undertake more complex retrofits.  It talks about ensuring that owner-occupied homes reach a minimum energy performance by 2035 (rented homes earlier) and what we need to do now and over the next few years to keep us on that path.  It talks about helping SMEs to invest in retrofit and energy efficiency measures.  The CCC recommends that plans should drive consistent growth in sales of EV cars and vans through the 2020s to meet the 2030 phase-out date.  

To achieve the target dates, we need swift engagement and practical solutions.  We need individuals and small business to see how the right decisions can be made without compromising their financial position.  We need to make the information readily accessible, highlight the options available, showcase practical solutions provided by competent suppliers and make the changes affordable.  We should have started a long time ago.  We can’t afford to delay any further because we need mainstream take-up.  We can do this in the UK and we can do this globally.  We need to act now.