New report identifies opportunities to unlock c.£37bn in private investment for Scotland’s home efficiency market

by Green Finance Institute | December 12, 2025

Positive public views on Scotland’s proposed net zero targets and plans correlates strongly with consumer interest of green home finance products
Just 4.7% (£1.7bn) of Scotland’s c.£37bn home energy efficiency market is currently reachable – but new research demonstrates that boosting consumer awareness of the financial solutions available could unlock up to c.£17bn in private investment
Research shows necessity for government and industry to act now to introduce policy, scale financial solutions and close the awareness gap

London and Edinburgh, 15 December 2025 — A new report, commissioned by the Green Finance Institute (GFI) and funded by the Scottish Government, titled ‘Scottish consumer attitudes towards green home finance products’, shows that boosting consumer awareness of available finance solutions could unlock up to c.£17bn in private investment when paired with supportive policy.

According to the Climate Change Committee (CCC), decarbonising Scotland’s buildings will require an additional £30bn of investment, exceeding what the Scottish Government alone can fund[1]. With buildings accounting for 13% of Scotland’s total carbon emissions and 30% of total energy consumption^[2], mobilising private capital to tackle home energy efficiency is critical to achieving net zero by Scotland’s target of 2045.

The research, conducted by insight and communications consultancy SEC Newgate, examined Scottish consumer appetite for green home finance products, including green mortgages, unsecured green home loans, Property Linked Finance (PLF) and Green Rental Agreements (GRAs), in the scenario where there were proposed mandated minimum energy efficiency standards for all owner-occupier and non-domestic properties in Scotland. It revealed strong demand among both residents and landlords to improve energy efficiency, supported by financial solutions, once consumers were made aware and educated on green home improvements and green home financial solutions.

Support for the Scottish government’s proposed net zero goals was strong across the Scottish public polled with 63% of residents (homeowners and renters) and 76% of landlords supporting the plans. The research found educating consumers on green home improvements and financial solutions to support energy efficiency and decarbonisation correlated strongly with support for the governments net zero goals, with 65% of residents and 79% of landlords feeling positive about green home finance products if there were mandated minimum energy efficiency standards for all homes.

Yet, despite this opportunity, low awareness of green loans, mortgages and other financing options remains a barrier to uptake. As a result, only 4.7% of the estimated £37bn market potential – is likely to consider taking out a product. Awareness raising combined with policy and regulatory clarity for consumers around future requirements could unlock a market of c.£37bn, in a market currently worth less than £2bn in Scotland.

A leading example is Capital Credit Union[3] in Scotland, who now offer loans aligned with the Green Home Finance Principles (GHFP) to help households access green home technologies. Their alignment means around 65% of Scottish households and just under half of all postcode districts have access to a GHFP-aligned community-offered green loans. Capital Credit Union has mobilised over £3m in green home loans in just over 12 months and expects to reach £5m before the end of the year[4].

The research strongly supports the case for Scottish government to leverage the positive sentiment on proposed net zero plans with the financial solution appeal. To continue developing the green home finance market in Scotland, the GFI recommends the Scottish government introduces policy actions in line with the originally proposed Heat in Buildings Bill, to introduce targets for all properties whilst ensuring these are introduced in a measured and appropriate way to avoid exacerbating fuel poverty and rally the finance industry to introduce and scale financial solutions while accelerating market education, skills and supply chains to help realise Scotland’s c.£37bn home efficiency opportunity.

To drive progress on building decarbonisation, the GFI and the Scottish Government launched the Scotland Green Home Finance Certificate to support mortgage brokers, hosted the inaugural Scotland Green Home Finance Summit and developed the Scottish PLF Greenprint – published today – outlining how PLF could be introduced, executed and scaled in Scotland. The Greenprint highlights the substantial potential of the Scottish PLF market, estimating its commercial and residential value at £8.7bn to £15bn.

Scottish Government Cabinet Secretary for Housing Mairi McAllan said: “It’s absolutely essential that we decarbonise our homes to achieve our twin aims of delivering affordable heat and reducing fuel poverty whilst also cutting carbon emissions. New green home finance products will have a big part to play in helping us to deliver this. I am therefore very encouraged that this research shows there is strong interest in Scotland – among both residents and landlords – to improve energy efficiency once they are aware of the financial solutions that are available. We have considered this carefully along with the recommendations of the Green Heat Finance Taskforce and will respond in due course.”

Rhian-Mari Thomas, CEO of GFI, said: “This research shows there is support and appetite amongst the Scottish public for green home improvements. The GFI is working with the Scottish Government, financial institutions, and industry to introduce policy measures and provide the financial solutions that have the potential to catalyse c.£37bn of private investment needed to unlock the interest evident in this analysis.”

Samantha Homer, CEO of Capital Credit Union, said: “At Capital Credit Union, we believe ethical finance has a vital role to play in helping Scotland achieve its net zero ambitions. Our green loans give members an affordable and transparent way to make their homes warmer and more energy-efficient, with the flexibility to repay part of their loan when they receive a government grant. We are also careful to work only with reputable suppliers to ensure members receive quality installations and genuine value for money. This practical and fair approach supports households across Scotland while contributing to the aims of the Heat in Buildings Strategy and the country’s wider carbon-reduction goals, aligned with the Green Home Finance Principles (GHFP).”

Research methodology:

An online quantitative survey with n=1023 Scottish residents, including Landlords.

Data collection occurred between 23rd January and 3rd February 2025.

Additional data:

64% of residents who would borrow from a financial provider to pay for green home improvements would use an unsecured green home loan
61% of private renters and landlords said they are likely to use a Green Rental Agreement
83% of ‘resident first-time buyers’ said they are likely to use a Green Mortgage to buy a greener home
59% of consumers said they were likely or neutral towards using PLF with 43% likely or extremely likely to use PLF
80% of first-time buyers in the pioneer group (respondents defined as having confidence managing money and finances, strong support for government plans and strong capability and openness to make green home improvements) said they are likely to use PLF for a green home improvement, and 71% said they are likely to buy a property with PLF attached
67% of landlords said they are likely to use PLF for a green home improvement, and 79% of landlord buyers said they are likely to buy a property with PLF attached

Read the full research report here.

Recommendations:

The research established several key recommendations for the Scottish Government and industry, to expand the potential green home finance solution market, including:

Building trust by increasing awareness of the cost and tangible benefits of green home improvements, in tandem with boosting awareness of the role of financial solutions and providers,
Raising confidence by developing financial literacy and capability to make green home improvements. These are essential steps to boost motivation and take up of financial products. Also need to address the prevalent issue of low debt appetite by helping consumers understand the flexibility of green home finance solutions.
Increase appeal with targeted messaging – ensure that messages resonate with the target audience by making products feel relevant and appealing.
Highlight innovative features of the products to boost appeal
Leverage the relationship between government stance and solution appeal – support for Scottish governments net zero ambitions is highly correlated with positive attitudes towards green home finance solutions, meaning that collaboration between GFI & Scottish government in helping consumers understand government regulation in a way that is palatable to boost knowledge and appeal of the solutions will be essential.

In March 2025, The Green Finance Institute (GFI), in collaboration with the Scottish Government, announced it was expanding its pioneering Certificate in Green Mortgages training programme to Scotland. The aim is to support mortgage and property sector professionals to bridge the knowledge gap in green home financing and mobilise the Scottish and wider UK mortgage markets – worth £13.8 bn and £240 bn a year respectively – towards a greener built environment. The training is accredited by the London Institute of Banking & Finance (LIBF) and is eligible for CPD certification upon successful completion of a timed assessment.

[1] https://www.theccc.org.uk/wp-content/uploads/2025/05/Scotlands-Carbon-Budgets-2.pdf

[2] Heat In Buildings Strategy: Achieving Net Zero Emissions in Scotland’s Buildings

[3] Capital Credit Union was established in June 1989 and is one of the largest credit unions in the UK, with over 33,000 members, and assets of £42 million.

[4] In September 2020, the GFI launched the Green Home Finance Principles (GHFPs), a framework of guidelines that promote integrity in the market by providing financial institutions with a consistent and transparent methodology for the allocation of finance towards retrofitting works in the UK’s domestic buildings. Capital Credit Union sourced here.