Source · Select Committees · Business and Trade Committee
Recommendation 1
1
Paragraph: 30
Ineffective historic heating policy and the absence of a clear, strategic policy direction for low...
Conclusion
Ineffective historic heating policy and the absence of a clear, strategic policy direction for low carbon heating has created confusion and uncertainty in the transition to low carbon heating and has affected investor confidence. We welcome the long overdue publication of the Heat and Buildings Strategy. However, a greater amount of clarity is required to give the sector certainty and a clear direction of travel.
Paragraph Reference:
30
Government Response
Accepted
HM Government
Accepted
The Heat and Buildings Strategy outlines our approach over the first half of this decade, which will be focussed on growing supply chains, growing the skills base and creating the right enabling environment for growth in the sector. A long-term framework has been developed which sets out our aim of ensuring as many homes as possible reach EPC C by 2035 where cost-effective, practicable and affordable, alongside our intention to completely transition away from natural gas for heating by phasing out the installation of natural gas boilers from 2035. The Government aims to reduce consumer costs so that, by 2030, low carbon heating systems are no more expensive to buy and run than existing natural gas systems. In order to fully decarbonise our buildings by 2050 the UK will need to completely transition away from natural gas and fossil fuel heating systems, replacing them with suitable low carbon alternatives. There is no one-size-fits-all solution. The Government is clear that a range of technologies will be needed to decarbonise at scale, including heat pumps, heat networks, and potentially boilers that burn hydrogen as fuel, once the role of hydrogen in heating is established. Because of the uncertainty of the relative role of hydrogen in heating, the objective of the Heat and Buildings Strategy is to set out the near-term policy framework, focussing on low and no regrets action in this decade, whilst setting clear long-term signals where possible, and outlining our approach to strategic decisions on heat by 2026. The Government agrees with the Select Committee’s view on the importance of energy efficiency as a driver for decarbonisation. This is why a “fabric first” approach is being taken, focussing on improving the energy efficiency of buildings where practicable, affordable and cost effective, driving near term carbon savings, making homes warmer and reducing bills. The Government has been clear that prior to a decision for hydrogen being taken in 2026, our priorities are to continue growing key markets and reducing costs for heat pumps and heat networks, while also improving our evidence base by funding research, development and innovation projects across a range of technology types. Critical trials of hydrogen for heat at a neighbourhood and village scale will take place in 2023 and 2025 respectively.