Heat in Buildings: Local Government Oversight Group minutes: September 2024

Attendees and apologies

• James Fowlie, COSLA
• Robert Nicol, COSLA
• Calum Lindsay, COSLA
• Mike Callaghan, COSLA
• Gareth Fenney, Scottish Government
• Alice Hunter, Scottish Government 
• James Hemphill, Scottish Government
• Karl Reilly, Scottish Government
• Rajiv Naik, Scottish Government
• Edmund Chapman, Scottish Government
• Mark Stewart, Scottish Government
• Louise Scott, Scottish Government
• Hywel Lewis, Scottish Government
• Drew Murphy, Scottish Government

Items and actions

Next steps for the Heat in Buildings Bill and lessons from COSLA engagement on previous Bills

SG gave an overview of Heat in Buildings Bill progress. Consulted earlier this year, commitment to bring forward the Bill included in the Programme for Government. Keen to engage with key stakeholders including Local Government.

COSLA recognise the importance of the legislation, huge impact on decarbonisation, need to get it right. We need to identify parts of the Bill COSLA can support getting right. Example shared of a recent Bill, good relationship with officials, knew Bill was coming but not able to discuss. Bill ended up having a red flag issue in it, then needed a lot of political discussions to resolve. Eventually agreed an amendment, but could have been fixed through more open engagement at the start.

SG asked what are the best methods of engagement.

COSLA advised conversations in the first instance to identify the key sections, and shape initial thinking. Say 3-4 sections to talk through initially. Then find areas we need to go into more detail. Key area of collaboration is the financial memorandum and helping to come up with accurate costs against local authorities. What COSLA say on Bills needs to be politically agreed. Have some agreed positions, but need to build on this.

Action

Follow up meeting to discuss Bill to be arranged for an appropriate point ahead of introduction.

Update on Climate Delivery Framework

COSLA gave background on the Climate Delivery Framework, joint enterprise between Scottish Government and Local Government. How do we get to net zero by 2045, needs significant thought, resource and partnership. Not looking to replicate policy work, take an overarching view of what needs to happen by 2045. How will things interact, e.g. electrification of transport and heat decarbonisation. Lots the public will have to deal with over the next few years. Need a place to have conversations, come up with solutions, agree policy and resources. Have agreement to have it, establishing political group at the heart. Hoping to have initial political group in the next few weeks, there will then be an officer group and expert group providing advice. Also looking to facilitate discussion across local authorities.

SG noted regional approach relevant to heat decarbonisation. Keen to have more discussion on this.

Update on the Green Heat Finance Taskforce

SG advised taskforce working on part 2 report. Three themes are place-based, heat networks, and social housing. Recognise these can be distinct but also overlap. Taskforce thinking about place quite holistically. Need to think about where there might be opportunities around recommendations. Potential connections with the Climate Delivery Framework. Once we have published the part 2 report need to publish an SG response, good to work with COSLA on how to respond to the recommendations, place-based, social housing, etc. How can we work in collaboration, identifying where there is work already happening we can highlight.

COSLA noted that unless we are credible about how we will fund this then the regulations will be less credible. Happy to support and receive more detail when available.

Update on heat networks policy and regulations

SG updated on the heat networks policy and work with the UK Government. Passed the Heat Networks Act in 2021, and regulated as far as we could to raise reputation of the sector. Created licenses to regulate developers, couldn't set consumer standards, but the Energy Security Act 2023 has filled in a lot of gaps, and now need to align our Act to fit in. Passed some secondary legislation, e.g. Building Assessment Reports and heat network zoning. In practice doing much of this through Local Heat and Energy Efficiency Strategies (LHEES). Local authorities are now keen to designate heat network zones. The Heat in Buildings Bill consultation proposed using heat network zones to require building owners to decarbonise earlier than 2045 through connecting to a heat network. Aiming to reduce risk for developers and give ability to deliver LHEES. In practice three major building blocks, need Heat in Buildings Bill and secondary legislation, need to strengthen indicative zones to be more robust, need a better route to market, current approach is too restrictive.

COSLA requested further discussion on this.

Action

Follow up meeting to work through in more detail, including the role of local authorities.