Green Heat Finance Taskforce minutes: February 2022

Attendees and apologies

Attendees

• Patrick Harvie MSP, Minister for Zero Carbon Buildings, Active Travel and Tenant’s Rights, (Meeting Chair)
• Sara Thiam, Scottish Council for Development and Industry
• Kirsty Hamilton, Independent 
• Sandy Begbie, Scottish Financial Enterprise 
• Ingrid Holmes, Green Finance Institute 
• Eddie McAvinchey, Scottish National Investment Bank 
• Ian Cochran, Edinburgh University Business School/Institute for Climate Economics 
• Lewis Shand Smith, Energy Consumers Commission 
• Helen Melone, Scottish Renewables 
• Andy Kerr, Climate KIC 
• Rufus Grantham, Bankers Without Boundaries 
• Simon McWhirter, UK Green Building Council Scotland 
• David Steen, UK Green Building Council Scotland 

Secretariat

• Lorraine King, Scottish Government, Heat in Buildings Division
• Ragne Low, Scottish Government, Heat in Buildings Division
• Carole Stewart, Scottish Government, Heat in Buildings Division
• Toby Tucker, Scottish Futures Trust, Net Zero Team
• Michelle Rayneard, Scottish Government, Heat in Buildings Division
• Peter Irving, Scottish Government, Heat in Buildings Division

Items and actions

Welcome and introductions

The Chair welcomed members to the first meeting of the Green Heat Finance Taskforce, thanking them for agreeing to join the group and for their commitment of time and expertise. 

Presentation: Heat in Buildings Strategy 

Officials from Scottish Government’s Heat in Buildings Division presented an overview of the Heat in Buildings Strategy published in October 2021, with a particular focus on those components of most relevance to the work of the taskforce. 

Action 1: Secretariat to circulate presentation slides to members. 

Green Heat Finance Taskforce terms of reference

The Chair invited members to offer any suggested additions or amendments to, or to seek any points of clarification on the draft Terms of Reference, which had been provided to the members.

Amendments to be made as per the following actions:

• action 2: Secretariat to include reference to both existing technologies and new technologies that may develop, in Taskforce’s high-level objectives 
• action 3: Secretariat to include reference to relationships with building owners in high-level objectives
• action 4: Secretariat to include reference to returns and wider socio-economic benefits 
• action 5: Secretariat to include conflict of interest as standing agenda item
• action 6: Secretariat to amend the draft ToR accordingly and to re-circulate Terms of Reference to members

Financial mechanisms and barriers 

The group held an initial high level discussion on potential financial mechanisms and barriers which included the following:

• the group noted the merits of a place-based approach to investment, which could fit well in terms of implementation – for example, net zero plans for a city – and the need for green infrastructure and spaces, plus greater engagement with and reinvestment in communities, all as potential means of bringing about more energy efficiency and decarbonisation measures
• members discussed the use of equity in buildings as a possible means of unlocking asset wealth for existing property owners for financing heat decarbonisation activity
• members noted that a range of financial mechanisms will be required to support individual circumstances and that it is important to learn from what has already been done

Action 7: Secretariat to prepare a presentation on building level data for the next meeting to underpin work on financial mechanisms.

Development of engagement strategy 

The group discussed development of the engagement strategy which included the following:

• the value of making use of and building upon using existing stakeholder networks was noted, as well as the importance of ensuring that consumers, and the public more generally, should help shape and inform the recommendations made by the Taskforce
• it was noted that comfort and wellbeing (drafts, damp, cold and healthcare) were often held to be more important drivers than decarbonisation aims particularly when considering, for example, attitudes of people in multi occupancy buildings
• it was recognized as important to include the views of industry in any public engagement strategy, not least because they interfaced directly with consumers and with those responsible for installing low carbon heating systems such as heat pumps

Any other business and date of next meeting

As this inaugural meeting had been largely an introductory session, focusing on background and arrangements, it was proposed that the taskforce should meet again in early March for session focused on the domestic owner occupier sector. The group agreed to meet again in early March and noted that the Secretariat would be in touch with future dates. 

Action 8: Secretariat to arrange second meeting of taskforce in early March.