Heat in Buildings Bill consultation: business and regulatory impact assessment (partial)

Objectives

3.1 The objectives of the proposals set out in the consultation are consistent with the Strategy. The Strategy set out how we plan to transform Scotland's homes and workplaces so that they are warmer, greener and more efficient, and made clear that regulations would be essential to delivering the required reduction in emissions from Scotland's buildings. The proposed Bill is the first step in this process.

3.2 The Strategy:

• established principles to underpin our policies and actions on energy efficiency and heat, including principles to prevent fuel poverty worsening.
• set out strengthened action and increased investment to support delivery of energy efficiency and zero direct emissions heat (referred to from here and in the consultation as "clean heat").
• considered whole system energy issues and how these are to be managed over the course of the transition.
• outlined the scale of the economic opportunity presented and the measures necessary to realise this and to ensure a just transition.

3.3 One of the actions set out in the Strategy to achieve these objectives was to introduce a regulatory framework for clean heating and energy efficiency, subject to consultation and to limits of devolved competence. The proposed Heat in Buildings Bill, and this consultation on proposals which may inform such a Bill, are steps towards delivering this framework.

3.4 Our efforts to make our homes and non-domestic properties warmer, greener and more energy efficient can secure a wider set of outcomes that will benefit Scotland's people and places.

3.5 Our proposal to introduce formal regulations by way of primary legislation draws together existing and emerging Scottish Government policies and proposals relating to energy efficiency and heat decarbonisation as they affect buildings across Scotland. These underpin the high level outcomes identified and include measures to direct and support people, places, our economy, future energy networks, delivery and investment.

3.6 In order to meet our interim climate targets and ensure long-term delivery of our net-zero objectives, the Update to the Climate Change Plan^[2], which was the subject of its own suite of impact assessments, clarified that emissions from homes and non-domestic buildings combined will have to fall 68% by 2030 compared to 2020.

3.7 The consultation on proposals that may inform a Heat in Buildings Bill asks for views on the introduction of new standards for all buildings in Scotland^[3] in terms of their energy efficiency and use of clean heating systems. The setting of these standards in law, alongside the continued development of our support frameworks and the growth of financial products such as green mortgages, would accelerate heat decarbonisation in a way which has not been achieved by market forces (alone) thus far and which will be essential to achieving our legally binding emissions reductions targets.

3.8 The consultation asks for views on timeframes for the building stock to meet the standards proposed, and makes clear that the proposed Bill will be the first step in the creation of a legislative framework. Secondary regulations will be required to provide the details of implementation and will be the subject of future consultations.