- The Powering Net Zero (PNZ) Group, which funds the decarbonisation of British homes through the sale of transparent, UK-generated carbon credits, launches today.
- Homes represent the biggest barrier to reaching Net Zero, and the PNZ Group provides a feasible and realistic solution to reduce the emissions of our housing stock.
- Neither households nor the Government will have to foot the bill to decarbonise homes, with funds generated by the sale of carbon credits channelled directly back into retrofit activity.
A coalition of businesses dedicated to financing the decarbonisation of British homes without cost to the Government or households through the sale of UK-generated carbon credits has launched today.
The PNZ Group brings together three businesses with years of expertise in the net zero sector – Arctica Partners, Arete Zero Carbon, and Dynamis Associates. Together, the PNZ Group will deliver a renewable closed-loop ecosystem to finance the climate transition of the housing sector, in a global first-of-its-kind venture.
Homes represent the largest barrier to the UK reaching Net Zero by 2050, and account for almost a quarter of the UK’s total carbon emissions. Under PNZ Group’s scheme, houses will be retrofitted with equipment like heat pumps and additional insulation, financed by corporate buyers looking to fund local projects which deliver benefits in their areas.
Carbon credits, generated from the emissions reductions produced by the retrofit activity, will be sold on the Voluntary Carbon Market – with funds generated from the sales channelled back to fund additional retrofit work. These locally generated credits will help increase transparency and accountability in the Voluntary Carbon Market, so buyers can see the genuine benefits in real time, in their own communities.
Part of the income from every credit sold by PNZ Group goes back into our proprietary Power Purchase Agreement (PPA), which funds the installation of Solar PV and battery systems in households that could otherwise not afford it. The system is installed free of charge, and the cost of consumed energy generated is always below the National Grid price cap. By purchasing credits from our schemes, buyers help to extend PPAs to more of the country’s fuel poor households. This self-sustaining approach creates a virtuous circle that powers real action on Net Zero.
Last year, an initial pilot of our carbon credits, called Retrofit Credits, in association with the Housing Associations’ Charitable Trust (HACT), saw 22 housing associations across the UK receive the first tranche of over £7m in funding from the sale of our carbon credits to be reinvested back into their retrofit work.
The work implemented by PNZ Group will bring immense social value to the UK. More than three million households in the UK are in fuel poverty – and cold homes cost the NHS approximately £857m a year. Retrofit projects can reduce the heating demand of homes, increasing their energy efficiency, lowering bills, and ultimately delivering warmer, healthier homes.
Martin Smith, CEO of PNZ Group, said: “In order to meet our ambitious legally-binding Net Zero targets, it’s vital to tackle the significant challenge posed by our carbon-intensive housing. 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. We’re proud to formalise our partnership today through the creation of the PNZ Group to continue delivering outstanding retrofit activity to change lives all over the UK.”
Andrew van Doorn, CEO of HACT, said: “We have been working with Arctica Partners on the Retrofit Credits initiative since the beginning of 2022. As Arctica Partners becomes part of PNZ Group, we’re excited by what our partnership will bring and the impact we can create expanding the Retrofit Credits service, so that the scale and speed of the decarbonisation of UK housing stock can be accelerated, helping to deliver on the UK’s Net Zero ambitions and commitments.”
About PNZ Group
PNZ Group funds the affordable decarbonisation of British homes through the sale of transparent, UK-generated carbon credits to corporate buyers, without the need for further Government spending or the imposition of costs on households. We are the only project developer in the world originating carbon credits for the decarbonisation of housing stock and the only developer with projects in local UK communities. PNZ Group is made up of three interdependent companies which form a closed-loop renewable ecosystem to revolutionise the decarbonisation of Britain’s housing stock and supercharge the widespread adoption of green energy solutions. They are: PNZ Energy, which delivers domestic decarbonisation; PNZ Carbon, which generates localised carbon credits; and PNZ Consulting, which advises businesses on pathways to Net Zero. Learn more here: thepnzgroup.com