The Powering Net Zero (PNZ) Group, a coalition of businesses aiming to decarbonize UK homes through the sale of locally generated carbon credits without placing a financial burden on households or the government, announced its official launch on Tuesday.
Comprising Arctica Partners, Arete Zero Carbon, and Dynamis Associates, the initiative builds on their significant expertise in the net-zero sector.
Homes in the UK, which account for nearly 25% of the nation’s total carbon emissions, represent a substantial barrier to achieving the country’s net zero emissions target by 2050, according to PNZ Group’s statement.
The company’s approach involves retrofitting homes with energy-efficient technology such as heat pumps and improved insulation using funding from corporate buyers willing to support local projects.
Then, carbon credits generated through these retrofit projects will be sold on the Voluntary Carbon Market (VCM) and the proceeds will be reinvested to finance additional retrofit work.
According to PNZ Group, its approach enhances transparency and accountability in the VCM, allowing buyers to witness real-time benefits in their communities.
A percentage of the revenue generated from each credit sold by the PNZ Group is channeled into their proprietary Power Purchase Agreement (PPA), which finances the installation of solar photovoltaics (PV) and battery systems in households that cannot afford them otherwise.
This not only reduces energy costs but also helps extend PPAs to more low-income households across the country, creating a self-sustaining cycle toward net zero, the company said.
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In a successful pilot program with the Housing Associations’ Charitable Trust (HACT), called Retrofit Credits, 22 housing associations across the UK received over £7 million in funding from the sale of carbon credits, which was reinvested into their retrofit initiatives.
“PNZ Group has developed a ground-breaking and first-of-its-kind solution to deliver transformative retrofit activity, without costing the Government, or households, a penny,” CEO Martin Smith said in a comment to the formalization of the initiative.
Currently, over three million households in the country experience fuel poverty, costing the NHS approximately £857 million annually due to health issues related to cold homes.
Retrofit projects can alleviate these problems by reducing heating demand, enhancing energy efficiency, lowering utility bills, and ultimately delivering warmer and healthier homes, PNZ Group said.
Read more: Wood Mackenzie Warns Of Challenges For UK To Meet 2030 Carbon Capture Targets
