Green Deal and ECO

Green Deal and ECO

The Green Deal

The Green Deal is a scheme, originally designed by the government, now backed by private investors, that enables individuals and businesses to make energy efficiency improvements to residential and commercial property funded through a ‘pay-as-you-save’ approach. Green deal providers arrange low-cost finance for the improvements without any up-front payment. Instead, the costs of making the energy saving improvements are added to the energy bills at the property and paid off in instalments by the energy bill payer in line with the Green Deal Golden Rule. The Golden Rule is that the expected financial savings resulting from the energy efficiency measures must be equal to or greater than the costs attached to the energy bill. The burden of the repayments remains with the property, and therefore transfers to the new owner/occupier when a building is sold/let.

The Green Deal was introduced through the Energy Act 2011 (EnA 2011) and has been implemented through a series of regulations and orders, which provide details to the scheme, such as the Green Deal Framework (Disclosure, Acknowledgment, Redress etc) Regulations 2012 (GDFR 2012),

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Latest Environment News

Environment and Climate Change Committee publishes report on nitrogen management strategy

The Environment and Climate Change Committee (ECCC) has published a report calling for a more strategic approach to nitrogen management in the UK. The report urges the government to develop a national nitrogen strategy to coordinate cross-departmental efforts, simplify the regulatory system and strengthen enforcement by clarifying the roles and responsibilities of those involved in nutrient management for wastewater. It also advocates for a circular approach to nitrogen management across the farming and wastewater sectors, with a focus on reducing inputs, maximising efficiency and reusing nitrogen. Further recommendations include implementing agricultural measures such as covering slurry stores and using low-emission spreading techniques by 2027, improving collaboration between wastewater and agriculture sectors, and ensuring the revised Clean Air Strategy establishes a funded plan to meet air quality targets. The Committee also emphasises the need to quantify major nitrogen flows, sources and sinks, while maximising opportunities to reduce, recycle and reuse nitrogen from residue streams such as solid manure, slurry and wastewater.

DESNZ publishes final CfD AR7 ST&Cs

The Department for Energy Security and Net Zero (DESNZ) has published the final versions of the Contracts for Difference (CfD) Standard Terms and Conditions (ST&Cs) and associated agreements for Allocation Round 7 (AR7). The documentation package includes the main ST&Cs, a generic agreement, phase-specific agreements for both single and apportioned metering, a private network agreement, and terms for unincorporated joint ventures. Each CfD contract issued under AR7 will comprise two parts: a specific front-end CfD Agreement and the ST&Cs. The generic CfD Agreement contains project-specific information that tailors the application of the ST&Cs.

UN Committee finds UK breached Aarhus Convention over lack of public consultation on Brexit legislation

The UN Aarhus Convention Compliance Committee has published draft findings concluding that the UK breached Articles 3 and 8 of the Convention during the development of the EU Withdrawal Bill. The Committee found that the UK failed to: (1) implement required public consultation timeframes; (2) make draft legislation available for public scrutiny; and (3) provide opportunities for public feedback. The findings, which follow a 2017 complaint by Friends of the Earth, will become legally binding under international law if adopted by the Convention’s member states in November 2025. If adopted, the UK will be required to implement legislative changes to ensure effective public consultation on future environmental laws. The UK government may choose to implement the findings ahead of the November 2025 meeting.

Environment weekly highlights—24 July 2025

This week's edition of Environment weekly highlights includes: news analyses on the UK's Modern Industrial Strategy 2025, Commons progress with the Planning and Infrastructure Bill and Lords amendments, the draft Finance Bill 2026, the Supreme Court's approach to public interest exemptions under FIA 2000, a Market Insights Trend report on trends in sustainability disclosures in corporate reporting and the Inter- American Court of Human Rights Advisory Opinion OC-32/25 of 29 May 2025. In addition this week, the Department for Energy Security and Net Zero (DESNZ) has published responses to three consultations on proposed expansions of the UK Emissions Trading Scheme (UK ETS), the Department for Environment, Food & Rural Affairs (Defra) has announced plans to halve sewage pollution from water companies by 2030, the Independent Water Commission has published its final report on water sector regulatory reform and the Office for Environmental Protection (OEP) has confirmed it will conclude its investigation into combined sewer overflow (CSO) regulation.