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Making the Green Deal work for all businesses

Green Deal Dialogue | Dods Green Deal Dialogue

6 min read Partner content

There is a genuine and understandable fear from many SMEs that the Green Deal will exclude them and be just for the large corporate companies, says Nigel Rees, chief executive of the Glass and Glazing Federation.

As an organisation why did you feel compelled to join the Green Deal Dialogue? Why do you feel that collaborative working on this issue is of such importance?

The Glass and Glazing Federation (GGF) has been involved in the Green Deal almost from the very outset. Over the last 12 months the GGF's involvement has escalated through political lobbying, technical discussions and members' debates. The Green Deal stands to become the single largest government initiative the glass and glazing industry has ever witnessed, and it is because of this potential magnitude, and the likelihood of a major impact on the industry – either potential opportunities or a serious threat – that the GGF felt it was imperative to take the lead. We want to be in a position to get our message over to government and subsequently relay all the relevant information gleaned back to our members. As a trade federation we represent many voices and as one entity our message on behalf of our members is amplified, because working collaboratively is the best way forward. Given the concerns of our members and the potential impact of the Green Deal, it would have been remiss of the GGF to pass up the opportunity to be in the Green Deal Dialogue.

Have you been impressed with the government's approach to energy efficiency?

We totally agree with and support the theory of the Green Deal, whereby we must improve the thermal performance of the UK building stock and where possible, remove the stumbling block of upfront costs. As we have highlighted in our formal response to the Department of Energy and Climate Change (DECC), we have some concerns over the current proposals and have suggested possible solutions for a better-functioning scheme that works for all our members and the industry in general.

What do you believe is the most important reason to make buildings energy efficient?

We feel the most important reason is to reduce energy wastage and carbon emissions. This in turn will assist with reducing energy bills, as less energy is needed if less is wasted, and therefore less needs to be generated. It saves not only energy but also money and the environment.

Do you feel enough is being done to promote the cost efficiency of the Green Deal to the business community?

We do not feel there has been much promotion to date. Those industries that feel they could be affected have sought out the information. We have a major concern about promoting the scheme to the homeowner/consumer too soon. If everyone waits for October, no installation of any product will take place in the interim and therefore a potential lull in the market could be avoided.

The value of the Green Deal to local communities in boosting business opportunities and local economies is often highlighted. How important a role will this play?

This is a vital role and it is imperative the scheme provides access for all companies and businesses of any size, providing they meet the scheme criteria. The current model for replacement windows works very efficiently and this must not be stopped from being an alternative.

Has information provision from the government on how the Green Deal will function, been sufficient?

When we have asked for dialogue with DECC, the discussions have been good. We have sought to provide guidance and gain answers and this has worked well. We are not too sure how much has come out under DECC's direction, as we are aware that there are plenty of organisations out there who are nowhere near up to speed with the proposals.

Concerns have been raised that larger organisations will have a bigger slice of the Green Deal market share. Has enough been done to communicate the Green Deal to smaller organisations and to ensure that SMEs can play a prominent part in the Deal?

I am not sure enough has been done by DECC to communicate to SMEs but certainly the GGF has provided detail and information for its members of all sizes. Obviously time will tell as to what is in the secondary legislation. There has certainly been a lot of rhetoric on the need for SMEs to have full access to the scheme. There is a need to maintain the established market balance of all companies, irrespective of size.

There is a genuine and understandable fear from many SMEs that the Green Deal will exclude them and be just for the large corporate companies who will act as providers. The GGF will endeavour to make sure that the Green Deal works for businesses of all sizes within our membership and subsequently in the general industry.

Will Green Deal providers need to upskill their workforce to meet the necessary fitting provisions and, if so, what support is the government offering?

Providers will not necessarily be installing, but installers will certainly need support to move from a competent basis to a qualified basis. There is concern that PAS 2030 is still not yet published, yet UKAS will be assessing against it for the trials.

Are you concerned about the impact that excessive regulation and bureaucracy may have on providers, especially SMEs?

Yes, we are concerned that as the scheme proposals have progressed it has appeared to become more complicated, with increased costs. Currently, it is possible for a homeowner wanting to buy windows to have them ordered and fitted within two weeks from the first point of contact with the installer. The potential red tape in the Green Deal could see it take possibly ten times longer than at present; this could cause major issues for SMEs in terms of cash flow and planning their business long-term. The GGF has offered a quicker and easier solution in our response to the minister that could alleviate this excessive regulation and bureaucracy.

Is DECC sufficiently aware of the difference between implementation of the Green Deal on commercial, as opposed to residential, properties or have they adopted too uniform an approach?

Non-domestic buildings are going to need to be considered very differently from domestic properties. Care will be needed to ensure they are managed differently. There tend to be far fewer ‘voters' involved with non-domestic buildings. There are also numerous other aspects to be considered over domestic buildings, depending on the usage. Although they may have similar meterage, there are vastly different considerations needed for a warehouse compared to an office, compared to a hospital, compared to a school.

Read the most recent article written by Green Deal Dialogue - Greg Barker MP: Green Deal will not be a ‘flash in the pan’

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Connecting Communities

Connecting Communities is an initiative aimed at empowering and strengthening community ties across the UK. Launched in partnership with The National Lottery, it aims to promote dialogue and support Parliamentarians working to nurture a more connected society.

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