Net zero targets
The Government has legally binding targets under the
Climate Change Act 2008 to reach ‘net zero’ carbon
emissions by 2050. Meeting this target will require a range
of actions across sectors of the UK economy that are
responsible for emissions. Housing is one such area as it
currently responsible for around 14% of UK emissions.
Background information is available from the Library webpage
on Climate Change: an
overview.
Policy to decarbonise homes
The Clean Growth
Strategy was published in October 2017 and includes
several targets to improve energy efficiency: to upgrade all
fuel poor homes to Energy Performance Certificate (EPC) band
C by 2030; to upgrade as many homes as possible to EPC band C
by 2035 (where practical, cost effective, and affordable) and
to improve business energy efficiency by 20% by 2030. There
are several policies to help meet these targets.
Further developments are expected in the coming year, for
example the Government is expected to publish a new heat
strategy (including future heat and energy in domestic
homes), while the Government’s independent advisors, the
Committee on Climate Change (CCC), have recently set out the
range of policies needed, in its view, across several
Government Departments in the near to medium term.
Retrofit policy
The Energy Company
Obligation (ECO) is a requirement for energy suppliers to
install energy efficiency measures in the homes of eligible
vulnerable, low income, or fuel poor customers. The Green Deal (now
privately funded) also supports energy efficiency and
renewable technology retrofit through loans. The Government
have also introduced minimum energy efficiency standards for
private rented homes (with some exemptions).
The 2019 Conservative manifesto included new commitments on
energy efficiency. The Government also announced further
support on energy efficiency as part of the economic response
to the coronavirus pandemic. This included a Green Homes Fund
which will provide two thirds of the cost of energy
efficiency installations up to certain limits.
New build policy
The major Government policy in this area is currently the
development of the Future Homes Standard. The energy
efficiency of new homes is controlled through building
regulations, and a consultation on this part (part L) of the
building regulations closed on 7 February 2020. It proposed a
two-stage approach, with measures to achieve either a 20% or
31% reduction in carbon dioxide emissions in 2020 regulations
and a 75-80% reduction in 2025. Concerns have been raised by
some that policy as planned may not deliver enough
improvement in building fabric efficiency due to the gains
from more efficient heating. A response to the consultation,
and next steps, is expected in Autumn 2020.
Comment on policy
Past Government action on energy efficiency has been
criticised. For example, the CCC in their 2020
report to Parliament, noted that:
Buildings saw some limited progress in the past decade,
with emissions falling 14% in the period 2008-2018, or 13%
after adjusting for above average temperatures. However,
after policy-driven success in the first half of the decade,
there has been minimal progress in recent years.
Energy Efficiency is a devolved matter and this briefing
broadly relates to policies in England.
