Decarbonising homes and buildings

A revised Heat in Buildings Bill will set a new target for decarbonising heating systems by 2045 alongside continuing work to reduce fuel poverty.

Acting Minister for Climate Action Alasdair Allan today confirmed the Scottish Government’s intention to bring forward a revised Bill for consideration by the Scottish Parliament later in 2025, to include:

• A target for decarbonising heating systems by 2045, sending a strong signal to homeowners, landlords and other building owners on the need to prepare for change while outlining collective actions to help do this.

• Provisions to boost heat network development by developing requirements for large, non-domestic premises, including powers to require public sector buildings to connect to district heating when available.

• Powers to set minimum energy efficiency standards for owner/occupier and non-domestic properties, subject to further consideration. Regulations will be progressed under existing powers to introduce a minimum energy efficiency standard in the private rented sector.

Dr Allan said:

“It is vital that we find the right balance both to reach net zero by 2045, and reduce fuel poverty.

“Many households, families and businesses are facing difficult circumstances right now and it is simply unaffordable for many building owners to make great changes in the near future – particularly for those in rural and island locations, whose needs and circumstances we must continue to consider carefully. 

“Our plan to deliver a revised Bill responds to the legitimate reservations and concerns raised since our consultation completed, including the risk of exacerbating fuel poverty and burdening every individual householder with an overly onerous responsibility as we decarbonise.

“Instead of placing prohibitions on every homeowner, we will establish targets for Government to reach. Rather than looking at action through the lens of decarbonising alone, we will also commit to doing everything within our power to reduce costs for people.”

The proposed Bill will remain technology-neutral, reflecting that different properties and people will require different solutions – for example, clean heating solutions in some remote and rural areas may vary from urban areas.

The Bill would accompany related work on a Social Housing Net Zero Standard and reform of Energy Performance Certificates under existing powers.

Dr Allan also welcomed the second report by the independent Green Heat Finance taskforce, published today. This also takes a collective approach, focusing on options for financing place-based solutions, heat networks and social housing retrofit.

He added:

“This report makes a very important contribution to our understanding of the work we need to do to boost clean heat demand amongst consumers and instil market confidence to develop new products, including financing solutions.

“It also identifies key steps the UK Government needs to take to stimulate the clean heat market and reduce fuel poverty, in particular emphasising the importance of rebalancing relative gas and electricity prices, which we continue to push for.”

Additional information

Responses to consultation on proposals for a Heat in Buildings Bill undertaken in 2023-24 

Green Heat Finance Taskforce Report: part 2