4. To ask the First Minister what the Scottish Government’s response is to the report that was published last Friday, “Owning the Future: A framework of regulations for decarbonising owner-occupied homes in Scotland”, which was commissioned by the Existing Homes Alliance. (S6F-01081)

The Scottish Government welcomes the publication of the research that was commissioned by the Existing Homes Alliance. Heating our homes and our places of work is the third-largest cause of emissions in Scotland. In the light of that, our “Heat in Buildings Strategy: Achieving Net Zero Emissions in Scotland's Buildings”, which was published in October, sets out over 100 different actions to support households and businesses to make energy efficiency improvements and transition from fossil fuel heating systems.

The strategy includes a commitment to regulate for minimum standards in homes. We will consult in detail on our proposed approach in the coming year. The Existing Homes Alliance and others have worked positively and constructively with us to date, and we will continue to engage with that organisation and others as we finalise our approach.

I thank the First Minister for her detailed reply. It is a highly complex area and there are very detailed recommendations in the report, including on the need for legislation, if we are to fully decarbonise our buildings by 2045. Scottish solutions that were identified in the report include installation of low-temperature heat pumps, district heating and, for some homes, biomass boilers. The key driver will be the improvement of building fabric efficiency.

Can the First Minister confirm that, as we focus more on decarbonisation, her Government will prioritise a fabric-first approach, introduce a fabric energy efficiency standard, begin the phasing out of fossil fuels for heating and act to ensure that we have in our communities the skilled workers who are necessary to deliver on our vital climate change targets?

The First Minister:

We have a long-standing commitment to taking a fabric-first approach, which is critical to reducing energy demand, making homes warmer and preparing them for zero-emissions technologies. We have committed to regulating minimum energy efficiency standards in homes by 2033, which will be equivalent to the energy performance certificate, reformed to focus on fabric measures.

Fabric improvement alone will not get us close to net zero; we need a strong focus on heating-system change. We will phase out the need to install new replacement fossil fuel boilers in off-gas areas from 2025, and in on-gas areas from 2030. The opportunity that is presented by the heat transition will require further capability and capacity in our supply chains, so we are also developing a new heat in buildings supply chain delivery plan with industry, so that we can deliver that work at the pace and scale that are needed.

I thank Kenny Gibson for raising the issue, because 28 per cent of people in Scotland live in tenemented dwellings, and the proportion is even higher in my Constituency. On page 3, the report sets out clearly that we need to look at existing forms of heating, because air source heat pumps simply will not work for people in tenemented dwellings. Likewise, the current legal framework makes it difficult for tenement-dwelling owners to do the required retrofitting.

Will the Scottish Government give consideration to plans for investment in municipal heat networks and for a change in the law to make it easier for tenement owners to come together to do the retrofitting that is required to heat homes sustainably?

The First Minister:

Yes, we will do all that. I certainly have a lot of sympathy with the points that have been made. I, too, represent a Constituency—albeit that it is in a different city—that has a high number of tenement properties.

The £300 million heat network fund will support large networks that are suited to urban environments as well as supporting small rural and community-led heat networks and communal systems.

The issues are complex, as I acknowledged in my response to Kenny Gibson. We are working through those issues in partnership with industry. It is important that all those points are borne in mind as we continue to do that.

The cost of the heat in buildings strategy is £33 billion. This Government has offered £1.8 billion towards it. Who will pay the rest?

The First Minister:

Liam Kerr should know the process that we have under way, right now. Of course, the £1.8 billion will come over the course of this parliamentary session. That significant investment will support those who are least able to pay, as will Scotland’s heat network fund and the social housing net zero heat fund. We have also established the green heat finance task force, which will recommend ways to increase private sector investment and look at contributions from individuals, which we all want to keep to a minimum.

As the Minister for Zero Carbon Buildings, Active Travel and Tenants’ Rights set out when he launched the strategy, it will require us to lever in significant private capital investment. I was at the All-Energy 2022 conference yesterday, where I heard Keith Anderson of Scottish Power make that point. The good news is that significant investors of private capital are looking for ways to invest in the net zero transition, so the task force has an important job to do. That work is under way.