LONDON: British households will be able to take out soft loans to improve the efficiency of their homes from 2013, repaying these from energy savings made, the government said on March 2.

The "Warner homes, greener homes" initiative aimed to cut carbon emissions from homes by 29% by 2020.

The strategy will continue the government's present approach which forces energy companies to help pay to improve home efficiency.

"New pay as you save green finance, a new alliance between energy companies and local authorities... will help deliver the radical transformation that's necessary," said energy and climate minister Ed Miliband.

Around a quarter of British carbon emissions come from energy used in homes.

The new initiative will succeed the present Carbon Emissions Reduction Target, from 2008-11, the third, three-year phase of a domestic energy supplier obligation, expected to drive utility investment of around £2.8 billion (RM14.12 billion) into efficiency improvements.

The new strategy aimed to offer up to seven million "eco upgrades" by 2020, compared with 26 million homes in the UK in total.

The UK has previously announced plans to have all lofts insulated by 2015, where practicable, and for smart meters which allow residents to view their energy use in real time to be rolled out across all homes by 2020, replacing all 47 million gas and electricity meters. -- Reuters

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