A number of reports have come out claiming that zero carbon can be achieved at little cost, recently for the EU. Many of the advocates of the Green New Deal are on the left. I’m not sure that these advocates have resolved the dilemma of how the poor afford zero carbon technology. There is no magic money tree for new zero carbon technology, either the government funds it through taxation or borrowing, consumers pay or investors in the new technology receive lower returns to reduce the cost to the consumer.
A number of stories about the cost of green technology for the poor, question this. The Independent has reported that 1/3rd of UK adults have no savings, other reports show over 40% of UK adults have less than £1000 savings. So how are these people going to make the investment in an electric car or an air source heat pump? And if not they, who?
Although the price of green technology is falling, it is still a large capital outlay. So, financing this investment for the poorer half of the population is a big issue. A report by the RAC in November 2020, claimed that 30% of the UK population could not afford even the cheapest electric cars. This is regardless of the fact the running costs are lower, the barrier is buying the electric car.
When I posted on the zero carbon Britain Facebook group about air source heat pumps, more than half the comments were about them being too expensive, from a group which supports zero carbon! All this suggests that financing zero carbon technology is a major issue. This may be why the Finance Industry is such a strong advocate – they will make significant returns on the investment cost of zero carbon technology.
For domestic heating and hot water, this problem is aggravated for poorer 50% of the population, by their probable lack of control over their housing. They are more likely to be renting from social housing or private landlords. So, it is those landlords who will need to make the investment in zero carbon domestic heating. But will they without regulation?
The question is who will fund the investment in zero carbon technology for the poorer 50%? How will the landlords. letting to this group be persuaded to invest in zero carbon heating? What will be the effect on their returns? How will the acquisition of electric cars be affordable for the poorer 50%?
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