Paragon Bank has announced it is launching an inaugural green savings fixed rate bond aimed at helping improve the energy efficiency of UK homes.

The bank’s green three-year fixed rate bond is to pay a rate of 1.60%, with the deposits from this offering to be used to finance properties with an Energy Performance Certificate (EPC) rating of C or above, predominantly in the UK private rented sector.

The government has set a target for net zero greenhouse gas emissions by 2050 and Paragon suggested that housing will play a “key role” in achieving that.

Housing accounts for 15% of the UK’s greenhouse gas emissions, rising to 22% if electricity consumption is included.

Paragon savings director, Derek Sprawling, commented: “Much of the UK’s housing stock is energy inefficient and as a nation we need to take huge strides over the next two decades to reduce carbon emissions from our homes.

“We are becoming more aware of our impact on the environment from all aspects of our lives – from how and where we shop, to the car we drive, to the home we live in.

“Our new green savings product will give savers the opportunity to contribute towards improving the energy efficiency of UK homes, helping to create a more sustainable future. This is an important step for us to take and we will build on this inaugural offering in the coming months and years.”

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