The Scottish Government is introducing the New Build Heat Standard from 2024 in direct response to the recommendation of the Committee on Climate Change on how to meet the net zero legal obligations legislated for by the Scottish Parliament.

Within the 2019 UK housing: Fit for the future? publication, the Committee on Climate Change recommended that “from 2025 at the latest, no new homes should be connected to the gas grid. They should instead be heated through low carbon sources”. A copy of this report can be found here: UK housing: Fit for the future? - Climate Change Committee (theccc.org.uk)

In a subsequent letter to the UK Government , the CCC recommended that: “The full definition of the Future Homes Standard should be set now and legislated ahead of 2024 to give market certainty. Waiting until 2024 to legislate is likely to drive up compliance costs in the long run, given the history of the cancelled Zero Carbon Homes policy which left many investments stranded and weakened industry confidence. We also urge you to consider bringing forward the 2025 introduction date - we note that Scotland are due to introduce equivalent standards a year earlier.”

We initially announced our intention to regulate new build heating systems in September 2019, five years in advance of the regulations coming into force, and we are actively working with the construction sector to inform the development of these new regulations – including through establishment of an external working group, membership of which includes trade bodies representing Scottish and UK house builders.

That five year prior notification has given the construction sector significant time in which to plan for these new regulations coming into force. It is longer than the three year duration of a building warrant - meaning that no builder could have pre-ordered fossil fuel heating for an active or planned building warrant without being aware of the proposed prohibition on fossil fuel heating systems in new buildings applying from 2024.

The Scottish Government is introducing the New Build Heat Standard from 2024 in direct response to the recommendation of the Committee on Climate Change on how to meet the net-zero legal obligations legislated for by the Scottish Parliament.

The Scottish Government has previously commissioned research which considered the capital costs associated with delivering zero direct emissions heating (ZDEH) technologies within new homes.

The research found that the installation of ZDEH systems ranged from £2,000 to £5,000 more than compared to a gas boiler counterfactual. However, these costs are highly variable and depend on a range of factors from the choice of system used to the nature of the construction of the individual development. It is also expected that both innovation and economies of scale will reduce the price of ZDEH systems as Scotland and many other countries increase their deployment.

Conversely, in off-gas areas, the capital costs of ZDEH systems were found to be comparable with fossil fuel alternatives (such as oil boilers).

Copies of the research papers are available here:

• Renewable and zero emissions heating systems in affordable housing projects: evaluation - gov.scot (www.gov.scot)
• Costs of zero emissions heating in new buildings (climatexchange.org.uk)

At the introduction of these regulations, a full Business and Regulatory Impact Assessment (BRIA) will be published – and the findings from these research reports and other relevant information will be incorporated into the final BRIA.

The sale price of a new building is a matter that is determined by each individual developer and takes into account a range of variables related to the cost of construction of the building and the local housing market.

Transport Scotland holds information on charge points registered on the ChargePlace Scotland network only and by local authority boundary and not by parliamentary constituency.

Across the local authority boundary areas that this constituency covers there were a total of 28 public charge points commissioned onto the ChargePlace Scotland network between 01 June 2021 and 31 May 2022.

Our approach, which includes our new £60m fund, is designed to attract private investment and create the conditions for the public network to be largely financed and operated by the commercial sector.

Security of electricity supply is a reserved policy area, delivered through UK Government electricity policy, Ofgem as the independent GB energy regulator, and National Grid ESO (the GB Electricity System Operator).

A mixture of renewables, storage and increased interconnection across GB and to the continent – as well as a potential role for carbon capture in some scenarios – can support a secure and decarbonised power sector in Scotland.

Since its launch in August 2020, the Social Housing Net Zero Heat Fund has committed £15.3 million for the retrofit of 1804 Social Housing properties across Scotland. The fund offers grant support of up to 50% of the total eligible costs of the project, with the average amount of support provided per property being £8,300.

Scotland’s energy sector is at the forefront of our transformation to becoming a net zero nation. It is a major employer and source of economic output, and our oil and gas infrastructure and highly skilled workforce have long been at the forefront of energy innovation - which is why it is well-placed to embrace the transformation that lies ahead.

We are already investing in the oil and gas sector’s net zero transformation. Our expanded £75 million Energy Transition Fund which is supporting the energy sector to grow and diversify, whilst helping to attract further private investment; and our £500 million Just Transition Fund for the North East and Moray will support the North East and Moray to become one of Scotland’s centres of excellence for the transition to a net zero economy . The opportunities of offshore wind are also considerable. Applicants to the recent ScotWind leasing round were required to submit a Supply Chain Development Statement, outlining the supply chain activity they commit to undertaking within Scotland, the UK and overseas. The full Supply Chain Development Statement Outlooks for all successful applicants were published by Crown Estate Scotland in April 2022, and the initial projections show an average spend of £1.5bn in Scotland across each of the 17 ScotWind projects. This week Crown Estate Scotland’s ScotWind clearing process offered seabed agreements to a further three projects off the east coast of Shetland bringing the total number of ScotWind projects to 20 totaling 27.8GW.

Our £75 million Energy Transition Fund is focused on acceleration the energy sector’s transition to net zero-emissions whilst helping to attract further private investment, £26 million of which has been allocated to develop the Energy Transition Zone (ETZ) in Aberdeen. ETZ is expected to directly support 2,500 green jobs by 2030, alongside a further 10,000 transition-related jobs. Our £500 million Just Transition Fund - which we have called on the UK Government multiple times to match - will also support the north east and Moray become one of Scotland's centres of excellence for the transition to a net economy, with our investment supporting transformation across the region.

The Scottish Government is providing support to encourage investment in renewables in the north east through a number of funds and programmes. These include, but are not limited to:

The £75m Energy Transition Fund is investing in projects that aim to accelerate and support the move to renewable energy, protecting existing jobs and create new jobs in the North East, and across Scotland by opening up opportunities through energy transition and harnessing private sector funding. It is currently in delivery with an intended end date of 2025.

The £125m City Region Deal investment runs until 2026 and includes £90m for the Net Zero Technology Centre. The City Region Deal is delivering a number of projects aimed at utilising the resources of the North East to lead the world on the shift to a net zero future in areas such as:

• offshore renewable (wind) energy generation,
• energy storage,
• electricity interconnection,
• hydrogen production and fuel cell deployment,
• gas and hydrogen distribution, and
• carbon capture, utilisation and storage.

The £500 million Just Transition Fund for North East and Moray will deliver over the next 10 years. The fund opened for applications on 31 May 2022. Bids to the first year’s allocation of £20 million are currently being assessed. The Just Transition Fund complements other Scottish Government commitments to the sector in the North East and was announced in recognition of the particular need to diversify the regional economy away from carbon-intensive industries and to capitalise on the opportunities, including jobs and prosperity, that the transition to net zero will bring.

The draft Hydrogen Action Plan committed £100 million hydrogen funding for 2022-2026 through the Emerging Energy Technologies Fund (EETF). This is a Scotland-wide fund to support Hydrogen, CCUS and the development of negative emissions technologies. In June 2022, we launched the first tranche of the EETF via the £10 million Hydrogen Innovation Scheme. The remaining £90 million hydrogen investment programme is expected to launch in Autumn 2022 and will focus on supporting rapid renewable hydrogen production from Scotland’s abundant renewable energy resources.

Our Emerging Energy Technologies Fund allocates £80m over the next five years to support the development of CCUS and negative-emissions technologies. We have offered this funding to help the Scottish Cluster carbon capture project accelerate its effort to help Scotland’s just transition to net zero.

The Scottish Government welcomed the findings in the Review which was funded through our £14.3m North East Economic Recovery and Skills Fund (NEERSF). The Review clearly demonstrates that, with the right investment, the North East of Scotland could support 9,000 more offshore energy jobs by 2030 than it currently does.

The just transition to a net zero economy is one of our greatest economic opportunities. Scotland has the potential to be a net zero global energy hub, that leaves no one behind by supporting existing oil & gas roles into the renewables and low carbon roles of the future.

In recognition of the particular challenges the North East has faced as result of the Covid-19 pandemic and the downturn in oil and gas, we have allocated £14.3m to the North East Economic Recovery and Skills Fund, which offers over 3,000 training opportunities in addition to supporting hundreds of local businesses at a critical time for the local economy. We have worked closely with local partners to develop proposals aligned to the City Region economic priorities of diversification and net zero transition, including local authorities, Skills Development Scotland, Opportunity North East, Scottish Enterprise, the Scottish Funding Council and local universities.

This programme aligns with existing nationwide upskilling and reskilling programmes of support for colleges and universities as we work towards a just transition, including the Young Person’s Guarantee, the National Transition Training Fund, the Flexible Workforce Development Fund and the Green Jobs Workforce Academy.

In 2022-23, we are also progressing key actions from the Climate Emergency Skills Action Plan (CESAP) focused on inspiring and empowering young people; supporting upskilling to meet emerging green jobs requirements; aligning work-based learning, Further and Higher Education provision to meet the needs of the net zero transition; facilitating behaviour change and helping employers capitalise on opportunities, and driving change in the skills system. The CESAP is being driven forward by an Implementation Steering Group comprised of central and local government and its agencies, education and skills providers, industry and independent experts.

The Scottish Government is providing support to encourage investment in renewables in the north east through a number of funds and programmes. These include, but are not limited to, the £500 million Just Transition Fund for North East and Moray which opened on 31 May. Bids to the first year’s allocation of £20 million are currently being assessed. The Just Transition Fund complements other Scottish Government commitments to the sector in the North East – such as our £125m City Region Deal investment, including £90m for the Net Zero Technology Centre and the £75m Energy Transition Fund (ETF).The ETF will protect existing jobs and create new jobs in the North East, and across Scotland by opening up opportunities through energy transition and harnessing private sector funding. As an example, our investment of £26.3m in the Energy Transition Zone is helping to unlock a further £64m in private investment for the first phase. The Net Zero Technology Transition Programme delivered by the Net Zero Technology Centre has also leveraged match funding of £17m from industry for phases 1&2 as a direct result of our £17m investment in the programme.

The draft Hydrogen Action Plan committed £100 million hydrogen funding for 2022-2026 through the Emerging Energy Technologies Fund (EETF). This is a Scotland-wide fund to support Hydrogen, CCUS and the development of negative emissions technologies. In June 2022, we launched the first tranche of the EETF via the £10 million Hydrogen Innovation Scheme. The remaining £90 million hydrogen investment programme is expected to launch in Autumn 2022 and will focus on supporting rapid renewable hydrogen production from Scotland’s abundant renewable energy resources.

Scotland’s natural resources, which include strong and consistent wind resource, along with our established expertise in offshore oil and gas, skilled offshore workforce, excellent port structure and strong innovation hub, make Scotland one of the best places in the world to develop offshore wind and reap the supply chain benefits from private sector investment. The recent ScotWind leasing round demonstrates this, by delivering around £700 million in option fee revenues to the public purse, plus the ScotWind projects committed to investment of up to £25 billion across the Scottish supply chain across the 17 Scotwind offshore wind projects as set out in their Supply Chain Development Statements