Dáil Éireann Debate, Tuesday - 16 November 2021
160. Deputy Neasa Hourigan asked the Minister for the Environment, Climate and Communications his plans to introduce a residential retrofit loan guarantee scheme as per action 212 of the Climate Action Plan 2021; and if he will make a statement on the matter. [56024/21]
View answerThe Climate Action Plan has set ambitious targets to retrofit 500,000 homes to a Building Energy Rating of B2 or carbon equivalent and to install 400,000 heat pumps in existing buildings by the end of 2030. These targets represent a very significant increase in both the volume and depth of retrofit activity in Ireland.
My Department is engaging with the Department of Finance and the Strategic Banking Corporation of Ireland in relation to the development of a residential retrofit loan guarantee scheme. This project has been selected for inclusion in Ireland’s National Recovery and Resilience Plan. The specific features of the scheme are still under development.
The part-Exchequer and part-EU funded loan guarantee will provide risk protection to retail credit institutions participating in the scheme. This will enable credit institutions to offer loans with reduced interest rates and make comprehensive home energy efficiency upgrades more affordable to consumers. As a result, households will be able to enjoy more comfortable and healthier homes with a lower carbon footprint.
The loan guarantee is expected to help to increase the volume of retrofit activity within the State and improve the recovery and resilience of the supply chain within the retrofit sector. The scheme will also signal to the banking sector new viable business opportunities associated with the transition to a low carbon economy.
