Climate Change Act – Section 72: thirteenth annual report

6. Need for the Legislation

6.1. The Twelfth Annual Report reflected on the 2017 'Places, People and Planning Position Statement'. The Position Statement concluded that section 3F should not be withdrawn through the then Planning Bill because every policy area is required to contribute to reducing emissions as part of our commitment to addressing climate change. The Twelfth Annual Report concluded 'that the changes planned in building and heat standards may at some point mean that Section 3F may not be required, but at this time does not suggest that Section 3F should be withdrawn.' It then set out some of the planning policy changes included in the 2021 Draft NPF4 (the final policy position is indicated in Section 5 of this report).

6.2. From 2024 and the introduction of the NBHS, while operational emissions will remain for new buildings at the building (rather than energy source) they will have been minimised through a combination of:

• Energy demand reduction through more energy efficient building fabric as a result of enhanced building regulations, and further enhancements that may flow from future review of building regulations (so the need for energy input and therefore greenhouse gas emissions is avoided);
• Zero direct emissions heating systems, which will become commonplace for buildings receiving a building warrant after April 2024; and
• Continued decarbonisation of the electricity grid through ongoing delivery of renewable sources of electricity generation.

6.3. In the meantime, NPF4 reflects our commitment to addressing climate change with its policies and strategy which have been designed to maximise the contribution of planning to meeting net zero.

6.4. NBHS will support zero direct emissions heating and that may be achieved through on-site heating sources. Where zero direct emissions heating systems are provided on-site for individual buildings, this mirrors the generating technology based approach supported by Section 3F.

6.5. In the meantime, for 2023, local development plan policy encouraging designers from the outset to take a generating technology approach to reducing emissions will help to keep this consideration in view. It also reinforces the role of generating technology in advance of the 2024 standards, as well as the application of current building standards which are commonly met through the application of generating technologies.

6.6. From 1 April 2024, for all new buildings receiving a building warrant, the NBHS will require zero direct emissions heating technology. This builds on already existing higher energy efficiency requirements for new buildings. Given that Section 3F seeks to save only a portion of emissions from the use of the building, it will be important to reconsider its role and continuing contribution in light of this changing context.

6.7. Energy Performance Certificates (EPCs) are required to be produced when buildings are completed, sold, or let to a new tenant. The Scottish Government is due to consult on EPC reform in 2023, however we anticipate that EPCs will continue to report emissions for buildings in accordance with the respective domestic and non-domestic methodologies.

6.8. Notwithstanding the questions related to implementation of Section 3F in relation to NBHS, largely the same conclusion is made here as for the Twelfth Annual Report, that changes planned in building and heat standards may mean that Section 3F may not be required in the future. However, in advance of those changes it is not suggested that Section 3F should be withdrawn.