Hounslow Council Pioneers Local Net-zero Investment Model

Hounslow Council is taking a pioneering step towards the UK’s Net Zero ambitions. Through the launch of an innovative Net Zero Neighbourhood (NZN) approach, the result should be warmer homes, lower energy bills, and tangible progress in addressing the climate emergency.

This forward-thinking model seeks to unlock significant public and private sector investment to support large-scale retrofit and local decarbonisation. Retrofitting existing homes – through measures such as improved insulation, heat pump installation, and modernised heating systems – is a critical component of reducing emissions and improving household energy efficiency.

Buildings currently account for approximately 23% of the UK’s total carbon emissions, and the vast majority of homes that will be in use by 2050 have already been built. This makes the upgrading of existing housing stock essential to meeting national climate targets while reducing the long-term cost of living for residents.

While retrofitting is fundamental to the Net Zero transition, the estimated national cost of £250 billion means that public funding alone cannot meet the scale of the challenge.

The NZN model directly addresses this gap by aggregating retrofit projects at a neighbourhood level and blending public and private finance. This coordinated approach is designed to deliver carbon reductions, improve living standards, and generate wider community benefits.

Hounslow’s Investment Memorandum has been developed in collaboration with Connected Places Catapult and 3Ci, demonstrating how coordinated interventions – including insulation upgrades, heat pump deployment, solar installations and shared heat networks – can achieve economies of scale and attract long-term institutional investment.

Councillor Katherine Dunne, Cabinet Member for Climate, Environment and Transport at Hounslow Council, said:

“This approach represents a landmark moment for Hounslow. Achieving Net Zero is not only about reducing emissions; it is about improving quality of life.

Through the Net Zero Neighbourhood model, we can deliver warmer, healthier homes, lower energy bills and create local jobs.

By working in partnership with investors and government, we are demonstrating how councils can take a leading role in tackling the climate emergency while supporting local communities. This is about turning ambition into action and creating a model others can follow.”

Zoe Jennings, Head of Investment, Funding and Procurement at Connected Places Catapult, added:

“Hounslow has been an early adopter of the Net Zero Neighbourhood model, featuring in our 2023 prospectus of 40 potential neighbourhoods across the UK. It is encouraging to see the borough continue to demonstrate leadership by working with us to develop this Investment Memorandum. Hounslow is helping to show what scalable, investable solutions can look like, not only for the borough and London, but for communities across the country.”

The Net Zero Neighbourhood approach positions Hounslow as a national testbed for scalable, investment-ready climate solutions, supporting the UK’s Net Zero objectives and providing a blueprint for local authorities nationwide.

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