RETROFIT CREDITS, developed by HACT and Arctica Partners, is a carbon credits scheme that unlocks additional funding into social housing retrofit by verifying the emission reductions and social value of retrofit projects  combining the Net Zero Goal with an intrinsic part of the sectors DNA. 

  • It is UK-based, only the second verified scheme to be so.  
  • It is the only project in the world originating carbon credits for the decarbonisation of housing stock. 
  • It incorporates social value, measuring the positive impact retrofit has on residents’ lives.  

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Why now?

For the UK to meet its Net Zero goal, the social housing sector urgently needs to improve the thermal efficiency of its housing stock and increase the proportion of homes using heat from renewable sources. This comes at a major cost: it is estimated the social housing sector requires investment of around £100bn to retrofit its homes.

In 2021, individuals and companies funded the reduction of 164 million tonnes of emissions by investing in projects outside their own carbon footprint. That’s more than twelve times the total emissions of the social housing sector. Yet none of that investment is currently directed to projects in the sector.

Why is this different?

Whilst other emission reduction projects view each tonne of carbon reduction as fungible, this service focuses on the outcomes of the people who live in the homes and communities where retrofit works are taking place.

Relying solely on emission reduction metrics as a measure of success risks funding projects that can harm people and communities. Instead, this project incorporates social value measures into the credit value – demonstrating that retrofit not only reduces greenhouse gas emissions in the long term but also creates social value for residents and communities.

RETROFIT CREDITS will secure additional investment for the sector by demonstrating the value and importance of retrofit to residents’ lives and the environment so that housing providers can continue investing in homes and communities across the UK and meet their Net Zero ambitions.

RETROFIT CREDITS Verified Carbon Units + Social Value

A certified product for the social housing sector

RETROFIT CREDITS will provide a channel for investment in social housing retrofit by verifying the emission reductions and social value of housing retrofit projects and originating carbon credits backed by those emission reductions. It will centre the impact of these retrofit activities on residents and communities through the incorporation of social value metrics so that the funding unlocked through carbon credits doesn’t just reduce carbon, but also improves lives.   

HACT, along with our project partner, Arctica Partners, has developed a methodology to measure the carbon savings and social value created through retrofit activity. To ensure the environmental integrity of the issued credits, this project has been developed under the Verified Carbon Standard, the world’s leading certification program for emission reduction projects. ​ 

The UK Social Value Bank and retrofit

The new UK Social Value Bank has been developed by the sector for the sector and includes outcomes for the health and wellbeing impacts of improving the energy efficiency of homes. RETROFIT CREDITS have an attached social impact value calculated using the UK Social Value Bank. This can be aggregated to measure the impact of energy efficiency programmes at neighbourhood, place and national levels.

We have calculated the average social value return on a whole-house retrofit to be:

£4,640 in social value / year

Or an average social value return of £1,592 per tonne of emissions reduced / year.

How it works

Who benefits?

Social housing organisations

External investment in the measurable environmental, social and fuel poverty impact of retrofit helps to reduce the cost and rebalance the viability of retrofit projects. With estimates for the cost of retrofitting properties exceeding £50,000, the additional income from RETROFIT CREDITS will enable housing retrofit to be deployed more widely, cost-effectively, and earlier than at present.


Access to affordable heat has a profound impact on the health, comfort, well-being, and productivity, of people in their homes. ​With rising energy costs, the risk of fuel poverty is only increasing. Retrofit can increase energy efficiency, meaning both warm homes and lower energy bills. According to the End Fuel Poverty Coalition, 96% of fuel-poor homes are poorly insulated.


Economy-wide, there is considerable potential to develop and extend the labour force with a full range of high-value skills. Increased investment in retrofit means supporting the growth of local supply chains. Ambitious housing retrofit could create over 138,000 new jobs in local communities by 2030 – directly supporting a just green transition.​


By purchasing credits from this service your business will be helping to address the systemic challenge of affordability in achieving Net Zero, enabling housing providers to continue investing in homes and communities across the UK, while reducing their emissions and increasing the accessibility of warmer homes and lower energy bills for some of the country’s most fuel poor households.  ​


Homes in the UK are some of the worst in Europe for thermal and energy efficiency, fossil fuel consumption and emissions intensity. They account for around 30 per cent of UK energy use and 19 per cent of emissions. ​The Climate Change Committee has identified the decarbonisation of homes as the greatest challenge the UK faces to become a Net Zero-carbon economy.​

Watch & listen again

A Q&A with Jacqui Bateson and Simon Turek on Retrofit Credits

On Tuesday 23 August we held an event on “Maximising your retrofit funding: SHDF funding & Retrofit Credits” , in this excerpt HACT’s managing director Jacqui Bateson and Arctica Partner’s Founder Simon Turek, answer attendees’ questions about Retrofit Credits.


Get involved

If you would like to learn more and register your interest simply contact

Antoine Pellet
Customer Relationship Lead

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