Presentation on theme: "The Green Deal Finance Company - a collaborative company to enable and underpin the Green Deal The Green Deal in Scotland July 2012."— Presentation transcript:
The Green Deal Finance Company - a collaborative company to enable and underpin the Green Deal The Green Deal in Scotland July 2012
Introduction to TGDFC Guiding principles Financing the Green Deal Endorsement and facilitation of the Green Deal Potential investment in TGDFC in support of local Green Deals Local Authority opportunity LA sub-group Challenges 2 Agenda
Introduction to TGDFC 3 TGDFC was established, with an initial 16 signatories, in response to the need for the underlying cost of finance for the Green Deal to be as low as possible; membership has grown to over 40. TGDFC is a not for profit organisation so minimises the cost of capital Offers a cost of finance to all households using a standardised credit policy Minimises associated set up and administration costs across the industry Enables quick and regular aggregation and refinancing in the capital markets Passes the benefits of strong investment grade finance directly to households. Available to all accredited providers, irrespective of membership position. TGDFC is awaiting the imminent implementation of a loan from DECC to facilitate the structuring of financing facilities and with a view to GD finance being available from Spring 2013
Role of Local Authorities in TGDFC Endorsement and facilitation of demand 4 Brand Trusted reputation may encourage greater community engagement Longevity of authority may reassure communities in taking out longer term measures. Assets Anchor assets (either local authority owned stock and/or use of public sector assets) Use of planning processes and building controls Relationships with private landlords including registration schemes Membership Ensure that requirements and concerns of the public sector are met Facilitate engagement with local authority pension funds where appropriate Finance Local authorities could consider investing PWLB alongside Green Investment Bank The long term nature of Green Deal assets could make an investment in Green Deal an attractive proposition for LA pension funds
LA Sub-group 6 TGDFC LA sub-group was established to provide a focal point for Local Authorities seeking to develop their approach to implementing the Green Deal. Issues addressed to date through the working group include: Business plans and delivery models Green Deal in the context of wider energy efficiency strategy Green Deal Provider role Loan administration and IT systems Green Deal for non domestic buildings
Challenges for LAs 7 Local authorities face a number of challenges in determining their approach to the Green Deal, including: How does the Green Deal fit with wider carbon reduction and energy efficiency strategies, e.g. District Heating and how can a holistic strategy be developed? How can the public sector work with the private sector to deliver a wide range of benefits? How can the Green Deal help meet wider strategic objectives, including fuel poverty, economic development and inward investment? Can and should the Green Deal be utilised on public sector assets, what are the accounting implications of this approach? What delivery options could be adopted and what are the financial risks of the various delivery options?