Retrofit Credits

RETROFIT CREDITS

Unlock additional funding for your retrofit works

Developed by HACT and PNZ Carbon, Retrofit Credits is a carbon credits programme that unlocks additional funding into housing retrofit by verifying the emission reductions and social value of retrofit projects –

combining the Net Zero Goal with an intrinsic part of the sectors DNA.

A methodology has been developed to measure the carbon savings and social value created through retrofit activity. To ensure the environmental integrity of the issued credits, this project has been developed under the Verified Carbon Standard, the world’s leading certification program for emission reduction projects.

Carbon Credits with Integrity

For people, for place and for our planet

Uniquely incorporating social value, and built on and ethical framework, all credits are Verified Carbon Standard
providing credits with the integrity to help individuals, communities and organisations on the Net Zero journey.

It is UK-based, only the second verified scheme to be so

It is the only project in the world originating carbon credits for the decarbonisation of housing stock

It incorporates social value, measuring the positive impact retrofit has on residents’ lives.

How does it work?

We know, it sounds too good to be true,
so let’s break it down step-by-step!

DECARBONISATION

The housing provider enrols housing stock where retrofit works could improve the thermal efficiency of the home and/or reduce the carbon intensity of the heating source.

CALCULATE REDUCTIONS AND SOCIAL VALUE

> PNZ Carbon calculates the potential emission reductions using the Verified Carbon Standard and projected funding available from RETROFIT CREDITS.
> HACT calculates the social value generated by the retrofit works using the UK Social Value Bank.
> The housing provider uses the projected funding to inform their investment case for retrofit activities.

CREDITS & SALE

Once retrofit works are complete, PNZ Carbon originates Verified Carbon Units (RETROFIT CREDITS) with Verra Registry backed by the certified emission reductions. This ensures the uniqueness and integrity of the credits issued.

> HACT and PNZ Carbon manage the sale of the RETROFIT CREDITS.
> The social housing provider receives payment for the emission reductions and social value created or uses the RETROFITCREDITS to compensate their unabated emissions.

Case studies from buyers and providers

Read about the experience of some of the housing associations and buyers involved in the programme.

Why now?

For the UK to meet its Net Zero goal, the UK housing sector urgently needs to improve the thermal efficiency of its housing stock and increase the proportion of homes using heat from renewable sources. This comes at a major cost: it is estimated the social housing sector requires investment of around £100bn to retrofit its homes.

In 2021, UK businesses and organisations (or those with emissions in the UK) funded the reduction of 14.9 million tonnes of emissions by investing in projects outside their carbon footprint. That’s more than the total emissions of the social housing sector. Yet none of that investment is currently directed to retrofit projects in the sector. That’s more than the total emissions of the social housing sector. Yet none of that investment is currently directed to projects in the sector.

Why is this different?

Whilst other emission reduction projects view each tonne of carbon reduction as fungible, this service focuses on the outcomes of the people who live in the homes and communities where retrofit works are taking place.

Relying solely on emission reduction metrics as a measure of success risks funding projects that can harm people and communities. Instead, this project incorporates social value measures into the credit value – demonstrating that retrofit not only reduces greenhouse gas emissions in the long term but also creates social value for residents and communities.

Who benefits?

Housing organisations

External investment in the measurable environmental, social and fuel poverty impact of retrofit helps to reduce the cost and rebalance the viability of retrofit projects. With estimates for the cost of retrofitting properties exceeding £50,000, the additional income from RETROFIT CREDITS will enable housing retrofit to be deployed more widely, cost-effectively, and earlier than at present.

Residents

Access to affordable heat has a profound impact on the health, comfort, well-being, and productivity, of people in their homes. With rising energy costs, the risk of fuel poverty is only increasing. Retrofit can increase energy efficiency, meaning both warm homes and lower energy bills. According to the End Fuel Poverty Coalition, 96% of fuel-poor homes are poorly insulated.

Communities

Economy-wide, there is considerable potential to develop and extend the labour force with a full range of high-value skills. Increased investment in retrofit means supporting the growth of local supply chains. Ambitious housing retrofit could create over 138,000 new jobs in local communities by 2030 – directly supporting a just green transition.

Buyers

By purchasing credits from this service your business will be helping to address the systemic challenge of affordability in achieving Net Zero, enabling housing providers to continue investing in homes and communities across the UK, while reducing their emissions and increasing the accessibility of warmer homes and lower energy bills for some of the country’s most fuel poor households.  

Environment

Homes in the UK are some of the worst in Europe for thermal and energy efficiency, fossil fuel consumption and emissions intensity. They account for around 30 per cent of UK energy use and 19 per cent of emissions. The Climate Change Committee has identified the decarbonisation of homes as the greatest challenge the UK faces to become a Net Zero-carbon economy.

The numbers!