Alan Whitehead

Boston Consulting Group is providing pro-bono strategic project support to the COP26 Unit.

Evidence to date suggests that there may be a role for alternative electric heating technologies, such as infrared heating, in decarbonising the way the United Kingdom heats its homes and businesses, but this should be limited to specific use cases, such as small flats with low heat demand.

The Springfields site sits at the heart of the UK’s nuclear fuel manufacturing capabilities, and we have a keen interest in its future. Earlier this month, I visited the site to see first-hand the important work taking place, including at the Oxide Fuels Complex. We have also established a working group attended by key stakeholders, including the site operator and unions. Proposals relating to the Springfields site and developing its capabilities, alongside sector co-investment, will be welcomed by the up to £75 million Nuclear Fuel Fund announced in the recent Spending Review.

There are a range of possible options that could be taken to end the Special Administration Regime. These include through a restructuring, a trade sale or transferring the customers to other suppliers.

The Government will work closely with the Energy Administrators to ensure that any exit from the SAR achieves the best result for Bulb’s customers, creditors, taxpayers and the wider energy sector.

The UK is a world leader in the nuclear fuel cycle, and this is testament to the highly skilled workforce currently employed at the Springfields and Capenhurst sites, and the wider UK supply chain. The Government recognises the importance of continued commercial operation of the UK’s fuel production facilities to deliver low carbon energy.

As such, in the recent Spending Review we confirmed up to £75 million, to be used alongside sector co-investment, to preserve and develop the UK’s nuclear fuel production capability. With this funding we will move a programme forward to address all our fuel-related priorities, helping to develop the UK fuel supply chain to power the reactors of today and advanced nuclear in the future.

The Government has made a £1.7 billion loan facility available to the energy administrators for Bulb Energy, to provide working capital for a six-month period. The value of this facility is a contingency - it gives confidence to the energy administrators to carry out their duties effectively – protecting Bulb customers and keeping costs to a minimum for consumers.

The Government will recoup costs through the administrators realising the value of Bulb's assets, or through the established shortfall recovery mechanism which will see a levy charged on industry.

The Government has made a £1.7 billion loan facility available to the energy administrators for Bulb Energy, to provide working capital for a six-month period. The value of this facility is a contingency - it gives confidence to the energy administrators to carry out their duties effectively – protecting Bulb customers and keeping costs to a minimum for consumers.

The Government will recoup costs through the administrators realising the value of Bulb's assets, or through the established shortfall recovery mechanism which will see a levy charged on industry.

The Government is committed to tackling fuel poverty and supporting low income and vulnerable households to heat their homes at an affordable cost. In the Energy White Paper published in December 2020, the Government committed to consult on the Warm Home Discount scheme up to 2025/26. The Government will increase the total spending to £475 million per year (in 2020 prices).

There is no set threshold at which a company would be entered into a Special Administration Regime. Ofgem consider the specifics of the failed supplier and the circumstances in the supply market at the time. If Ofgem considers a Special Administration Regime appropriate, it may make an application to the Court for a decision, with the consent of the Secretary of State.

This is a judgment for Ofgem, who assess the circumstances of the failed supplier and the supply market at the time. If Ofgem considers a Special Administration Regime appropriate, Ofgem will make an application, with the consent of the Secretary of State, to the Court for a decision to place a company into special administration.

Bulb Energy Ltd will only remain in the Special Administration Regime for as long as necessary. There are various options to exit this regime.

The Government will work closely with the Energy Administrators to ensure that the exit from the Special Administration Regime achieves the best results for customers and taxpayers.

The Government will recover costs either by the special administration regime administrator realising the value of Bulb's assets, or through the established shortfall recovery mechanism, which will see a levy charged on industry. The details of this levy will be decided by the Government in consultation with Ofgem and industry.

The Government knows that customers are engaged under the Energy Company Obligation 4 scheme (ECO4) since households benefitting under the scheme already have multiple energy efficiency measures installed in their homes. The latest average number of measures delivered is 2.26 per home. The Government expects an average of 2.5 energy efficiency measures installed per home in houses rated band E to G under ECO4.

The Government’s Impact Assessment for ECO4 has considered likely consumer take up by assessing other multi measure schemes, including the Social Housing Demonstrator Fund project, and will be available to view once published in early 2022.

Households will be able to refuse any measure or installation at their property under ECO4.

The Government remains committed to improving the energy efficiency of homes as the most sustainable approach to tackling fuel poverty. The Government is investing over £2 billion through projects such as the Home Upgrade Grant (HUG), Local Authority Delivery Scheme, Sustainable Warmth Competition and the Social Housing Decarbonisation Fund. In addition, the Energy Company Obligation supports home upgrades across Great Britain. These schemes are retrofitting low-incomes households with appropriate measures to make them more energy efficient and cheaper to heat.

Under the Green Homes Grant Scheme vouchers are issued with a 90 day validity period.

The validity period of many vouchers has been extended on request. However, data on voucher extensions is not collected.

The Green Homes Grant Voucher (GHGV) scheme launched in September 2020, to help householders and landlords with the cost of installing energy efficient improvements in their home.

Official statistics (https://www.gov.uk/government/collections/green-home-grant-statistics) published on 18 November for the Green Homes Grant Voucher scheme describe the status of applications prior to 05 November. At present the release does not include further application details including how many were landlords, however it does show applications in each region of England.

The next statistical release will be published on 23 December 2021.

Under the Green Homes Grant Scheme vouchers are issued with a 90 day validity period.

The validity period of many vouchers have been extended on request. However, data is not collected on how many voucher extension requests have been accepted or rejected.

Attached is a list of the total funding allocated to each English Local Authority across Phase 1 of the Local Authority Delivery Scheme.

Schemes like the Energy Company Obligation allow energy suppliers to deliver part of their obligation by installing innovative measures in eligible households. In addition, research and development funding is available for developing new alternative heating technologies, such as heat batteries, through programmes like the BEIS Energy Entrepreneurs Fund (EEF) and Clean Growth Fund (CGF).

The Government has made a £1.7 billion loan facility available to the energy administrators for Bulb Energy, to provide working capital for a six-month period. As my Rt. Hon. Friend the Secretary of State set out in the House of Commons last week, we intend for the SAR process to be temporary and has instructed officials, industry and Ofgem to work to that end.

The Energy Company Obligation scheme (ECO) is an obligation that the Government has placed on larger energy suppliers to install energy efficiency and heating measures to low income and vulnerable households across Great Britain.

The current scheme ends in March 2022, followed by a successor scheme (ECO4). The publication of the government response to the ECO4 consultation is planned before the current scheme ends, followed by further guidance by Ofgem, who are the scheme administrators.

The Government has so far allocated a total of £1.1 billion to the Home Upgrade Grant (HUG), with delivery taking place from early 2022 to March 2025. Funding for HUG Phase 1, worth £152m, is expected to be delivered from early 2022 to March 2023.

The Government considers floating offshore wind as a vital component of the UK’s energy mix. In addition to the test and demonstration floating projects already in early development, the Crown Estate has commenced work on a floating wind leasing round in the Celtic Sea which could bring forward up to 4GW of new projects. The leasing round will focus on early commercial scale projects of 300-350MW and full commercial scale projects of up to 1GW. The Government recently announced up to £160 million to support large-scale floating offshore wind ports and factories to be built across the UK.

The primary objectives of the GGSS are to reduce emissions of the gas grid and ensure value for money for the billpayer. Paying tariffs to biogas plants on farms that do not inject the biomethane they produce into the gas grid carries the risk of overcompensation and therefore poor value for money to the billpayer. Billpayers would be paying for renewable gas from which they, or the gas suppliers, would never actually benefit.

The primary objectives of the Green Gas Support Scheme are to reduce emissions in the gas grid and ensure value for money for the billpayer. The Department does not currently have plans to develop an alternative scheme specifically to support small, off-grid biomethane supply on farms.

In late October, the Department published two consultations that set out proposals to phase out the installation of high carbon fossil fuel heating systems in homes, businesses, and office buildings off the gas grid during the 2020s, as committed to in the 2017 Clean Growth Strategy, and replace them with low carbon alternatives, in particular the use of heat pumps, where appropriate. Both consultations will close in January 2022.

The primary objectives of the GGSS are to reduce emissions of the gas grid and ensure value for money for the billpayer. Paying tariffs to biogas plants on farms that do not inject the biomethane they produce into the gas grid carries the risk of overcompensation and therefore poor value for money to the billpayer. Billpayers would be paying for renewable gas, from which neither they, nor the gas suppliers, would ever benefit.

The Department has not formally assessed the future role of small-scale biogas plants in mitigating farm methane emissions. The Green Gas Support Scheme, due to launch on 30 November 2021, will provide support for anaerobic digestion plants injecting biomethane into the grid, following the closure of the Non-Domestic Renewable Heat Incentive in March 2021. The Government will continue to evaluate biogas and biomethane’s future role in reaching net zero carbon emissions by 2050.

The Green Homes Grant Voucher scheme was designed as a short-term economic stimulus. It helped raise awareness of green home measures, and improved demand for a range of clean heat and energy saving installations.

In the Heat and Building Strategy, the Government outlines the new £450 million 3-year Boiler Upgrade Scheme which will provide grants of £5,000 from April next year to encourage homeowners to install more efficient, low carbon heating systems, such as heat pumps, that do not emit carbon when used. These grants mean that installing a heat pump will cost a similar amount to installing a traditional gas boiler.

The Government has committed a further £1.8bn over the next 3 years, targeting those in fuel poverty through the Home Upgrade Grant and Social Housing Decarbonisation Fund.

The Government has also expanded the Energy Company Obligation, under which energy companies have already installed 3.3 million measures in 2.3 million homes. We are increasing the amount energy suppliers invest in low-income households and have recently consulted on a new iteration of ECO which will run until 2026 and will see ECO’s value boosted from £640 million to £1 billion a year.

The Government continues to make funding available for both the development and deployment of innovative low-carbon heating technologies, such as heat batteries.

In July 2021, the Government published analysis as part of our Smart Systems and Flexibility Plan, which concluded that by managing the UK’s energy more flexibly, the UK could reduce the investment required in the electricity network and in new electricity generation capacity. In particular, the flexible use of heat – using technologies like heat batteries – could make an important contribution to this objective.

The building regulations are themselves technology-neutral; they do not mandate or ban the use of any specific technologies.

The Government is currently consulting on phasing out the installation of fossil fuel heating in homes off the gas grid in England from 2026. In this consultation, the Government proposes to adopt a ‘heat pump first’ approach to heat decarbonisation in off-grid properties based on extensive assessment of the cost effectiveness of heat pumps relative to other low-carbon heating technologies. The Government is also seeking views on the role of alternative low-carbon heating technologies, such as heat batteries.

Research published by the Department (www.gov.uk/government/publications/cost-optimal-domestic-electrification-code) suggests that alternative electric heating technologies could have a role to play in decarbonising buildings, but can lead to higher lifetime costs relative to heat pumps. The Government acknowledges the wider benefits that heat batteries provide in terms of their ability to support a smart and flexible energy system, therefore the Government is exploring this potential further.

The top three performance indicators have been published in line with BEIS’s commitment to transparency on Key Performance Indicators for government’s most important contracts.

BEIS will publish the 10 Key Performance Indicators in due course.

As set out in the Net Zero Strategy and Heat and Buildings Strategy, the Government is committed to ensuring that the costs of the UK’s transition to net zero is fair and affordable for all energy consumers. The Government’s upcoming Fairness and Affordability Call for Evidence will consider options covering both domestic and non-domestic consumers to shift or rebalance energy levies and obligations over this decade.

As set out in the Net Zero Strategy and Heat and Buildings Strategy, the Government is committed to ensuring that the costs of the UK’s transition to net zero is fair and affordable for all energy consumers. The Government’s upcoming Fairness and Affordability Call for Evidence will consider options covering both domestic and non-domestic consumers to shift or rebalance energy levies and obligations over this decade.

Official statistics published on 18 November for the Green Homes Grant Voucher scheme describe the status of applications prior to 05 November.

As of 5 November, a total of 43,071 vouchers have been paid, with a Government contribution funding value of £197 million across 988 active installers. As of 5 November, 3,142 vouchers, where Green Home Grant measures have been installed, were awaiting payment.

Payment of the grant is a four-step process that requires the customer to confirm the work has been completed, the installer to lodge the work, the scheme administrator to undertake scheme checks, and then proceeding to payment. Timescales for this may vary.

The next statistical release will be published on 23 December 2021.

Government sees floating offshore wind as a vital component of the UK’s energy mix as the UK moves towards net zero. The Government has committed to delivering at least 1GW floating capacity by 2030 as a steppingstone to larger scale deployment through the 2030s. In the draft budget notice for the 4th Contracts for Difference round, the Government announced ringfenced support for floating offshore wind.

Government sees floating wind as a vital component of the UK’s energy mix as the UK moves towards net zero. Therefore, it has committed to delivering at least 1GW floating capacity by 2030. In the draft budget notice for the 4^th Contracts for Difference round, the Government announced ringfenced support for floating offshore wind.

The UK is a global leader in this technology, with more installed capacity than any other country in the world. The Government believes there is a real opportunity to develop this position to create a strong domestic industry, generating high-skilled jobs and driving investment. The Government has committed up to £160m to develop UK ports and the floating wind supply chain, part of a £380m package over the next four years to support the development of the offshore wind industry in the UK.

Government sees floating wind as a vital component of the UK’s energy mix as the UK moves towards net zero. Therefore, it has committed to delivering at least 1GW floating capacity by 2030. In the draft budget notice for the 4^th Contracts for Difference round, the Government announced ringfenced support for floating offshore wind.

The UK is a global leader in this technology, with more installed capacity than any other country in the world. The Government believes there is a real opportunity to develop this position to create a strong domestic industry, generating high-skilled jobs and driving investment. The Government has committed up to £160m to develop UK ports and the floating wind supply chain, part of a £380m package over the next four years to support the development of the offshore wind industry in the UK.

The draft parameters for the fourth Contracts for Difference (CfD) allocation round published on 13 September 2021 included ring-fenced support for floating offshore wind projects. The statutory notices confirming the parameters for the fourth allocation round will be published shortly, ahead of the round opening to applications on 13 December.

The Government is committed to delivering up to 1GW of floating offshore wind capacity by 2030. The Government recently announced up to £160 million to support large-scale floating offshore wind ports and factories to be built across the UK. Further, the draft parameters for the fourth Contracts for Difference allocation round, published in September, included ring-fenced support for floating offshore wind projects.

Official statistics published on 18th November for the Green Homes Grant Voucher scheme describe the status of applications prior to 5th November.

As of 5th November, out of 57,684 vouchers issued, 46,213 measures had been installed.

The next statistical release will be published on 23rd December 2021.

Under the Green Homes Grant Scheme vouchers are issued with a 90 day validity period. Many vouchers have been extended on request. In order to ensure the effective management of the end of the scheme, the Green Homes Grant Voucher Scheme closure date has been set at 30 November 2021 and this has been communicated to voucher holders and installers.

In the main, we do not anticipate allowing vouchers to be valid beyond this date.

BEIS officials are working with industry representatives to better understand the global supply chain issues which are affecting various sectors.

This will allow us to continue to support installers on the ground as well as informing further policies in future Government energy efficiency schemes.

Following the closure of the Green Homes Grant Voucher scheme we are refocussing efforts and funding on alternative approaches that will maximise the delivery of home retrofits for consumers who are most in need and support the supply chain to keep delivering.

Official statistics published on 18 November for the Green Homes Grant Voucher scheme describe the status of applications prior to 5th November. Statistics include figures on measures installed and vouchers paid by geographic region.

The UK and the EU agreed the terms for our association to Horizon Europe under the Trade and Cooperation Agreement. The UK stands ready to formalise our association to EU programmes at the earliest opportunity, but disappointingly there have been persistent delays from the EU.

We see no legal or practical reason why we should not be able to formalise our participation swiftly, and urge the EU to do so.

Our priority is to support our UK’s R&D sector and we will continue to do this in all future scenarios. We have been allocated funding for full association to Horizon Europe, as stated in the Spending Review. In the event that the UK is unable to associate, the funding put aside for Horizon association will go to UK government R&D programmes.

There will be no single policy or technology that cuts carbon emissions to virtually zero, but a diverse mix of technology, such as heat pumps and potentially heating appliances fuelled by hydrogen, alongside green projects like heat networks, that will combine to decarbonise heat in buildings over the next three decades.

Our analysis of off gas grid homes suggests that around 80% of homes have sufficient energy efficiency and electrical connections to accommodate a low temperature heat pump system. This potentially rises to around 90% with fabric upgrades including draught-proofing, cavity wall insulation, floor and loft insulation, and external wall insulation. For homes on the gas grid, our analysis shows that 90% of homes have sufficient energy efficiency and electrical connections, which could increase further with fabric upgrades. However, in both off and on gas grid homes, our analysis does not account for noise and space considerations.

In some cases, accommodating a heat pump may also require changes to the size or specification of pipework and radiators to ensure they can deliver the levels of thermal comfort required by consumers. A qualified installer will be able to advise on the specific measures that might be needed to prepare a home for a heat pump.

Through the Government’s £14.6 million Electrification of Heat Demonstration Project and £60 million Heat Pump Ready Innovation Programme, we are exploring where innovation can help enable the deployment of heat pumps in a range of housing archetypes.

Improving public awareness of the benefits of installing a heat pump will be a key enabler for the large-scale decarbonisation of heat. The Government are currently reviewing the provision of advice delivered through government-endorsed Simple Energy Advice Service, which offers impartial and independent information to consumers on a range of low-carbon heating and energy efficiency solutions.

The Government is also improving our evidence base and considering the best tools to raise public awareness, through the forthcoming £60m Heat Pump Ready Programme, which aims to develop approaches and products to engage effectively with home owners and other key stakeholders who can help to deliver high-density heat pump deployment across the UK. Additionally, the outputs of the ongoing £14.6m Electrification of Heat Demonstration Project, including case studies, will be used to raise consumer awareness of heat pumps.

As part of the Department’s £505 million Energy Innovation Programme, the Electrification of Heat Demonstration Project is showcasing the feasibility of installing heat pumps in a range of homes across the UK.

The installation phase of the Project is coming to a close and initial results, providing installation information, will be published later this year. The Project will continue to monitor performance data from the installed heat pumps over the winter period and further Project results and findings from that phase, including case studies, will be published.

As part of the Department’s £505 million Energy Innovation Programme, the Electrification of Heat Demonstration Project is showcasing the feasibility of installing heat pumps in a range of homes across the UK.

The installation phase for all the Project’s heat pump systems will be completed shortly. The Project will continue to monitor performance data from the installed heat pumps over the winter period and further Project results and findings from that phase, including case studies, will be published.

The Warm Home Discount (WHD) scheme, introduced in 2011, places a legal obligation on medium and larger energy suppliers to deliver support to people living in fuel poverty or a fuel poverty risk group. Ofgem is the WHD scheme administrator.

All suppliers of last resort have agreed to provide Warm Home Discount rebates to the eligible customers of failing suppliers with over 150K domestic customer accounts, and the Government expects them to continue doing so.

The Energy Company Obligation (ECO) is worth £640 million per annum and has been in place since January 2013.

The Government does not have figures on the number of gas boilers and heat pumps installed by each energy company in the last financial year. However, we do know that since ECO began, it has delivered around 3.3 million insulation and heating measures in around 2.3 million homes, up to the end of June 2021.

Obligated suppliers can deliver insulation and heating measures at any time during their obligation period.

The Clean Growth Strategy committed to ‘phase out installation of high carbon fossil fuel heating in buildings not connected to the gas grid, starting with new build, during the 2020s’. As set out in the Energy White Paper and alongside the publication of the Heat and Building Strategy, we are planning to consult on new regulations to phase out heating systems using high carbon fossil fuels such as oil and coal in homes, businesses and public buildings off the gas grid during the 2020s.

The Government is also funding several schemes as part of its commitment to facilitate the decarbonisation of off-gas-grid homes and to make them greener on the path to Net Zero.

Smart meters bring significant benefits to prepayment consumers and have been invaluable during the COVID-19 pandemic. Smart prepayment services enable consumers to top-up remotely without leaving home and without needing to reach inaccessible meters. They also allow consumers to track their balance easily so they do not unknowingly run out of credit. The Government welcomes the insights in the ‘Maximising the smart meter rollout for prepayment customers’ report and are pleased to see that it recognises the transformative experience that smart meters deliver to prepayment customers.

The rollout of smart prepayment meters continues to make good progress, and energy suppliers are installing second generation smart (SMETS2) meters in prepayment mode across Great Britain. The Government has taken a number of steps to ensure that consumers with prepayment meters can benefit from smart meters including, for example, putting in place an explicit objective for Smart Energy GB – the industry body responsible for leading national coordinated consumer engagement – to assist consumers with low incomes or prepayment meters.

The Government and Ofgem have been clear that we expect energy suppliers to ensure that their prepayment customers are able to receive smart meters as soon as practicable. We welcome recent commitments by energy suppliers covering over 90% of customers to support customers over winter, including stepping up smart meter installations for prepayment customers.

A number of policy measures have been considered and are already being implemented. These include publishing guidance to construction companies and other parties to support installation of smart meters in domestic new builds; confirmation that recipients of future Warm Home Discount Industry Initiatives will be provided with smart meters advice; andtargeted funds to decarbonise the public sector and promote smart metering.

The Government will continue analysis of potential policy measures. We will seek input and ideas from stakeholders as the rollout progresses for possible future introduction later in the rollout where appropriate, and dependent on wider industry progress towards reaching high levels of operational fulfilment and delivery of consistently good customer service.

The Government’s new four-year smart metering policy Framework, which commences on 1 January 2022 introduces annual, minimum individual installation requirements for energy suppliers, on a trajectory towards 100% subject to annual tolerance levels which were confirmed for Years 1 and 2 of the Framework in June 2021. The Government will consult on the minimum installation requirements for Years 3 and 4 of the new Framework during 2023.

The Government has worked with industry to identify, define and share good practice to help improve operational capabilities. We will continue to support energy suppliers to further improve operational fulfilment and customer experience.

The Government will engage with energy suppliers and other stakeholders in due course to help define more precisely the pre-conditions for the effective deployment of potential additional policy measures.

The Government is committed to ensuring that households can benefit from smart meters as soon as possible. The rollout is already making good progress, with 25.2 million smart and advanced meters across Great Britain, as of the end of June 2021.

A number of measures have been considered and are already being implemented. These include publishing guidance to construction companies and other parties to support installation of smart meters in domestic new builds; confirmation that recipients of future Warm Home Discount Industry Initiatives will be provided with smart meters advice; and targeted funds to decarbonise the public sector and promote smart metering.

The Government will continue analysis of potential further policy measures. We will seek input and ideas from stakeholders as the rollout progresses for possible introduction later in the rollout where appropriate, and dependent on wider industry progress towards reaching high levels of operational fulfilment and delivery of consistently good customer service.

As announced in the Ten Point Plan, we will bring forward regulations to phase out fossil fuel heating in off grid areas. We intend to consult on these plans in due course.

The Contracts for Difference (CfD) scheme is designed to encourage low carbon generation and is open to a wide range of eligible renewable technologies. Under current eligibility criteria, renewable projects are not eligible to receive CfD support if they have already commenced generating. In a Government Response to a consultation published in November 2020 the government clarified the eligibility of part-built projects, i.e. those which have begun construction but have not commenced generating, stating that these projects are eligible to compete in the 2021 allocation round. We consider this achieves the right balance between accelerating deployment of renewables, whilst providing value for money for consumers by ensuring scheme costs are limited to what is necessary to legitimately stimulate deployment. We will keep this position under review.

The Contracts for Difference (CfD) scheme has been successful in bringing forward renewable generation whilst also reducing the costs of technology and since its inception has become established as a route to bring forward investment at scale. As set out in my Rt. Hon. Friend the Prime Ministers’ Ten Point Plan for a Green Industrial Revolution, we have committed to holding regular CfD allocation rounds approximately every two years, and the next round will open in December 2021. The Department continues to keep the scheme under review to ensure it maintains a focus on investment certainty and stability to enable renewable deployment at scale. We recently concluded a Call for Evidence on this topic, seeking views to inform the future design and evolution of the CfD and will publish a response shortly.

Decarbonisation of Northern Ireland’s electricity system will play a key role in achieving the UK’s 2050 net zero targets. Energy policy is devolved to Northern Ireland. In a consultation earlier this year, the Department for the Economy (DfE) put forward a range of potential policies that could form the basis of Northern Ireland’s new Energy Strategy. This included a proposal to explore the possibility of extending the Contracts for Difference scheme to Northern Ireland. In this context, officials from BEIS and DfE are working together to consider the options.

Network charges are one of many factors which developers will take into account in deciding whether, where and when to progress particular energy projects in Scotland and across Great Britain. The reforms which Ofgem is progressing are, amongst other things, designed to support decarbonisation and contribute to meeting net zero at lowest cost. While network charging is a matter for Ofgem as the independent energy regulator, Government recognises the significant role that electricity network charging reforms will have on the wider energy sector, including renewables, and will continue to engage with Ofgem, industry and other interested parties to consider the impacts of the reform proposals.

Network charges are one of many factors which developers will take into account in deciding whether, where and when to progress particular energy projects in Scotland and across Great Britain. The reforms which Ofgem is progressing are, amongst other things, designed to support decarbonisation and contribute to meeting net zero at lowest cost. While network charging is a matter for Ofgem as the independent energy regulator, Government recognises the significant role that electricity network charging reforms will have on the wider energy sector, including renewables, and will continue to engage with Ofgem, industry and other interested parties to consider the impacts of the reform proposals.

Network charges are one of many factors which developers will take into account in deciding whether, where and when to progress particular energy projects in Scotland and across Great Britain. The reforms which Ofgem is progressing are, amongst other things, designed to support decarbonisation and contribute to meeting net zero at lowest cost. While network charging is a matter for Ofgem as the independent energy regulator, Government recognises the significant role that electricity network charging reforms will have on the wider energy sector, including renewables, and will continue to engage with Ofgem, industry and other interested parties to consider the impacts of the reform proposals.

There are no plans to make an assessment of the inclusion of infrared heating in the Renewable Heat Incentive (RHI). In the first instance, the primary legislation that underpins the RHI, Section 100 of the Energy Act (2008), places strict parameters on the categories of technology that can be supported under the scheme. In addition, the non-domestic RHI has already closed to new applications, and the domestic RHI is scheduled to close to new applications at the end of March 2022. Before a new technology could be introduced into the domestic scheme a formal evidence review would be required, followed by a public consultation. Legislation would then need to be taken through Parliament. This would take longer than the remaining lifetime of the scheme.

The next version of SAP will come into force with the uplift to Part L of the Building Regulations next year. We published an early draft of it in 2018 (SAP 10) and will publish an updated version (SAP 10.2) shortly.

The Government believes that nuclear could have a role in low-carbon hydrogen production and is aware of industry proposals showing how current nuclear technologies could play a role during the 2020s, while small and advanced modular reactors could unlock further efficiencies in future hydrogen production.

In terms of using former nuclear sites, the first priority is to ensure their safety and continued decommissioning, however we regularly engage with opportunities for future re-use where appropriate and this does include alternative energy production.

The Government is developing the first ever UK Hydrogen Strategy which it aims to publish shortly. This will set out the key steps needed in the 2020s to deliver our 5GW ambition and set the context for further scale up on the way to net zero.

Achieving net zero carbon emissions will require almost all UK homes to be supplied with low-carbon heating by 2050, and electrification will be an important part of that transition. Extensive government and independent analysis indicate that heat pumps are a cost-effective solution and will be a principal means of decarbonising heat in buildings through electrification over the next decade. There may be a role for alternative technologies, like infrared heating, but research to date – including our 2019 report ‘Evidence gathering for electric heating options in off gas grid homes’ – suggests this should be limited to specific use cases, such as smaller homes with low heat demand.

BEIS officials continue to assess the merits of different heating technologies and support to develop these technologies is available through schemes including the Energy Entrepreneurs Fund and Clean Growth Fund. I refer the Hon. Member to the answer I have given him today to Question 33096 for further information on these schemes.

Achieving net zero carbon emissions will require almost all UK homes to be supplied with low-carbon heating by 2050, and electrification will be an important part of that transition. Extensive government and independent analysis indicate that heat pumps are a cost-effective solution and will be a principal means of decarbonising heat in buildings through electrification over the next decade. There may be a role for alternative technologies, like infrared heating, but research to date – including our 2019 report ‘Evidence gathering for electric heating options in off gas grid homes’ – suggests this should be limited to specific use cases, such as smaller homes with low heat demand.

We continue to encourage innovation in new technologies. Support is available for developing technologies, such as infrared heating solutions, through programmes like the BEIS Energy Entrepreneurs Fund (EEF) and Clean Growth Fund (CGF). The EEF is a competitive grant funding scheme to support the development and demonstration of technologies, products and processes in power generation, energy efficiency and storage technologies, while the CGF aims to accelerate the deployment of innovative clean technologies that reduce greenhouse gas emissions, by making direct investments in companies seeking to commercialise promising technologies.

As we continue to deliver the commitments within the EPC Action Plan, and develop policies that rely on EPCs as a measure of energy performance, we will monitor and assess relevant material such as the Scottish Government’s EPC proposals, to inform our decision-making in these areas.

We expect the upfront costs of heat pump installations to reduce significantly as the scale of the UK market grows in line with the Government’s ambition for 600,000 heat pump installations per year from 2028.

We are taking a range of steps both to support the heat pump market to develop and to support consumers with the costs of installing a heat pump in the near term while the market builds. These include, for instance, the planned Clean Heat Grant and the Future Homes Standard, which will ensure that new homes are future-proofed with low-carbon heating from 2025.

We will set out further plans for developing the heat pump market in the Heat and Buildings Strategy.

The Government is planning to publish a Heat and Buildings Strategy in due course. This will include information on the Government’s approach to the transition to low carbon heating through a comprehensive policy package comprising targeted regulatory, market-based and public investment measures.

Our plans to scale up heat pump deployment provide a huge opportunity to expand the UK heat pump manufacturing base and exploit future export potential. Published last year, our Heat Pump Manufacturing Supply Chain Research Project indicated that the heat pump market could be worth £5.5 billion to the UK economy by 2035.

In order to help accelerate investment in UK heat pump manufacturing capability and capacity, we are setting clear long-term policy through our forthcoming Heat and Buildings Strategy. The Government is also providing cross-sector fiscal support, including expanded export finance facilities, funding to support training in low-carbon technologies and manufacturing through the National Skills Fund, and a 130 per cent super-deduction capital allowance on qualifying plant and machinery investments. In addition, officials in BEIS, together with colleagues from the Department for International Trade, are working closely with heating appliance manufacturers to provide business investment support.

UK-based heat pump manufacturers – like Mitsubishi Electric, Kensa, Clade Engineering Systems, Star Renewable Energy, Global Energy Systems, Big Magic International – are investing to meet growing demand in the UK and internationally, and Vaillant recently announced plans to expand their UK boiler manufacturing facility in Belper, Derbyshire, to produce heat pumps from 2022. This demonstrates that the UK is an attractive place to invest and to do business.

When it is implemented in 2025, the Future Homes Standard will deliver new homes that are zero carbon ready, with low carbon heating and high levels of energy efficiency. In the 2020 Energy White Paper, we also committed to consulting on the feasibility of ending the connection of new build homes to the natural gas grid, in favour of clean energy alternatives. We expect to consult on this commitment later this year to gather further evidence before taking a decision.

The Energy Performance Certificate (EPC) currently uses an energy cost based rating to encourage the implementation of energy performance improvements that reduce running costs. We are aware of the Scottish Government’s proposal to increase the number of metrics on the EPC. We have consulted recently on regulatory proposals that would use EPCs to support improvement to homes. In these consultations, we have sought views on what EPC metric or metrics are most aligned with our overall policy goals. This included a cost-based rating (Energy Efficiency Rating) and a carbon-based rating (Environmental Impact Rating) alongside seeking views on other options. Furthermore, we are continuing to deliver the commitments in our EPC Action Plan, published last year, to maximise the effectiveness of EPCs in improving the energy performance of buildings.

The Government wants to ensure that households and small businesses in Great Britain can benefit from smart metering. Therefore, we have confirmed that a new four-year smart metering policy Framework will set energy suppliers annual, individual minimum installation targets on a trajectory to 100%, subject to annual tolerance levels which were confirmed for Years 1 and 2 of the Framework in June 2021. The Government will consult on the targets for Years 3 and 4 of the new Framework during 2023.

The new Framework will commence on 1 January 2022.

Smart meters are replacing traditional gas and electricity meters in Great Britain as part of an essential infrastructure upgrade to make the energy system more efficient and flexible, enabling the cost-effective delivery of net zero greenhouse gas emissions.

The Government is committed to ensuring that households and small businesses can benefit from smart meters as soon as possible. Evidence shows that consumer attitudes to smart meters are not fixed and change over time and as such we do not hold an estimate of total consumer acceptance in England. Consumer demand remains strong with around 18,000 smart meters being installed on average each working day.

The Government recognises more may need to be done to engage consumers to reach the very highest levels of smart meter coverage by the end of the rollout. The Government will continue to consider further consumer-orientated policy measures to ensure households can realise the benefits of smart meters and drive completion of the rollout.

Smart meters are replacing traditional gas and electricity meters in Great Britain as part of an essential infrastructure upgrade to make the energy system more efficient and flexible, enabling the cost-effective delivery of net zero greenhouse gas emissions. The rollout is making good progress, with 24.2 million smart and advanced meters in homes and small businesses across Great Britain.

The Government wants to ensure that households and small businesses in Great Britain can benefit from smart metering and recognises that reaching this goal will involve continued collaboration between government, industry and Smart Energy GB and their partner organisations over the next phase of the rollout.

Further detail on activity that is seeking to drive consumer uptake of smart meters, including steps that have already been taken, is included in Annex B of the Government's recent response to the consultation on the smart meter policy framework post 2020: minimum annual targets and reporting thresholds for energy suppliers.

The Government wants to ensure that households and small businesses in Great Britain can benefit from smart metering. Therefore, we have confirmed a new four-year smart metering policy Framework with fixed annual installation targets for energy suppliers will commence on 1 January 2022 to drive the consistent, long-term investment needed to achieve market-wide rollout.

A mid-point review of the Framework will take place during 2023. The review will consider the tolerance methodology, including the forecasting model, as well as the latest available evidence on the progress of the rollout in line with developments in market conditions, consumer attitudes and energy supplier performance. Tolerance levels for Year 3 (2024) and Year 4 (2025) will be consulted upon following that review point and in advance of the start of Year 3.

Support to transition away from fossil fuel heating is currently available through the Domestic Renewable Heat Incentive (DRHI). Eligible technologies include biomass boilers and pellet stoves, as well as heat pumps. The DRHI is scheduled to close in 2022, however we have consulted on plans for a Clean Heat Grant (CHG) scheme, that will provide upfront grants for the installation of low carbon heating systems, including biomass boilers. Further information on scheme design and eligibility criteria will be set out in the government response to the consultation later this year.

Support for high temperature heat pumps is also available through the DRHI and the planned CHG. High temperature heat pumps may be suitable for use in properties that have a higher heat demand or where it is not appropriate to change the radiators or use under-floor heating.

From early 2022, the Home Upgrade Grant (HUG) will provide support to low income off gas grid households by installing energy efficiency upgrades and low carbon heating. The Sustainable Warmth Competition guidance sets out the expected approach for Local Authorities installing low carbon heating using HUG funding. Where low temperature heat pumps are unsuitable, alternative low carbon heating technologies may be installed if justification can be provided as to how they meet deliverability, value for money, affordability, sustainability, and air quality considerations.

BioLPG is not widely available to domestic consumers at present. The Clean Heat Grant aims to provide support that will maintain existing low-carbon heat supply chains from April 2022 and so the technologies it will support need to be readily deployable now. It will take time to gather the evidence needed to consider what future role biofuels could play in the decarbonisation of heat, and to develop the policy framework which would support such a role. This process is underway though the Biomass Strategy call for evidence. Biomass boilers are being supported as an alternative to heat pumps within the Clean Heat Grant, providing certain eligibility requirements are met.

BEIS analysis indicates that air source heat pumps would currently cost around £12,000 to install for an average fossil fuel heated home off the gas grid. This includes the upfront cost of the heat pump unit, tanks and cylinders, controls, retrofit of radiators, and installation costs.

Evidence from market research and industry engagement suggests that mass deployment of heat pumps in the UK could lead to a significant reduction in upfront costs for domestic-sized systems due to economies of scale and other efficiencies.

In order to ease consumer costs, the Government has been providing financial support through schemes such as the domestic Renewable Heat Incentive. In addition, from April 2022, the Clean Heat Grant will provide support to off gas grid households switching to low carbon heating, and the Home Upgrade Grant scheme will provide support to low income off grid households installing energy efficiency upgrades and low carbon heating.

The Government is developing options for how a long-term framework of policy approaches, including regulation, can combine to provide a clear direction-of-travel for industry and accelerate the uptake of low-carbon heat, including growing the heat pump market to 600,000 installations per year by 2028. Alongside the publication of the Heat and Building Strategy, we are planning to consult on new regulations to phase out fossil fuel heating in homes, businesses, and public buildings off the gas grid.

We will consult shortly on our preferred hydrogen business model, or models, for low carbon hydrogen aimed at supporting delivery of our 5GW hydrogen production capacity. Our business model will be designed to support a range of low carbon hydrogen production technologies, including electrolysis using renewable electricity and methane reformation with carbon capture, utilisation and storage (CCUS).

The Government recently ran a Call for Evidence inviting views on what scope there is for marine technologies across the UK including how the Contract for Difference competitive allocation process could most effectively support early commercial deployments of innovative marine technologies. This concluded on 30th September 2020 and we are now considering policy related to wave and tidal stream energy in light of the information received from the Call for Evidence.

We will publish specific allocation round parameters in advance of the next auction. This will include the details of whether any technology-specific minima will apply.

The CfD scheme’s success has in part been down to the competitive nature of auctions. To date, no wave or tidal stream projects have been successful in a Contracts for Difference allocation round.

The Low Carbon Contracts Company (LCCC) keeps a register which contains a record of all projects which have been successful in previous allocation rounds. This can be found at https://www.lowcarboncontracts.uk/cfds.

Wave and tidal stream projects remain eligible to compete in Pot 2 for Contracts for Difference auctions. We will publish specific allocation round parameters in advance of the next auction, including consideration of technology-specific minima.

The Government has a target of 1GW of floating wind by 2030.

In addition to the (operational) Hywind and (under construction) Kincardine projects, there are a number of projects at an earlier stage of development – Blyth, Erebus and Pentland.

The current ScotWind seabed leasing process is expected to result in a number of potential floating wind projects. The number, size and locations of potential projects will not be known until the ScotWind process is completed.

The Crown Estate is currently designing new seabed leasing for floating wind projects in the Celtic Sea, focusing on projects of 300MW. The number, size and locations of potential projects will not be known until the process is completed.

On 6 October my Rt. Hon. Friend the Prime Minister announced £160m to support offshore wind and infrastructure across the UK. We announced in March an investment of up to £75m for developing port infrastructure on the Humber and up to £20m for further investment on Teesside.

The UK Government also launched the Offshore Wind Investment Programme on the 22 February to support the delivery of manufacturing investment in the offshore wind supply chain. Whilst the scheme is still running I cannot comment further.

The Institution of Civil Engineers (ICE) are widely recognised for providing leadership to the increased digitalisation of the construction sector and the wider built environment. Innovative digital and information management techniques have already proven to deliver improved sector performance and operational efficiency from our national infrastructure. In future, these will significantly contribute to delivering our Net Zero Carbon commitments.

This is why, in collaboration with industry and academia, the Department is supporting programmes to develop new digital techniques, standards and guidance including funding the National Digital Twin Programme (NDTP). Therefore, we welcome ICE’s support for the NDTP, and we will continue to work with them and other stakeholders to take this forward.

The evidence received from stakeholders in response to our 2018 call for evidence highlighted that electrification of heat is the one pathway to net zero proven to work at scale in homes off the gas grid. This is reinforced by BEIS modelling which suggests around 80% of off gas grid homes currently have sufficient energy efficiency and internal electrical limits to accommodate a heat pump. Our analysis also shows that this figure potentially rises to around 90% with fabric upgrades including draught-proofing, cavity wall insulation, floor, and loft insulation, and / or more major upgrades such as external wall insulation. From 2022, the Clean Heat Grant will provide support to off grid households switching to low carbon heating, and the Home Upgrade Grant scheme will provide support to low income off grid households by installing energy efficiency upgrades and low carbon heating.

Evidence from market research and industry engagement suggests that mass deployment of heat pumps in the UK could lead to a significant reduction in upfront costs for domestic-sized systems due to economies of scale and other efficiencies.

In order to ease consumer costs, the Government has been providing financial support through schemes such as the domestic Renewable Heat Incentive. In addition, from April 2022, the Clean Heat Grant will provide support to off gas grid households switching to low carbon heating, and the Home Upgrade Grant scheme will provide support to low income off grid households installing energy efficiency upgrades and low carbon heating.

The Government is developing options for how a long-term framework of policy approaches, including regulation, can combine to provide a clear direction-of-travel for industry and accelerate the uptake of low-carbon heat, including growing the heat pump market to 600,000 installations per year by 2028. Alongside the publication of the Heat and Building Strategy, we are planning to consult on new regulations to phase out fossil fuel heating in homes, businesses, and public buildings off the gas grid.

The Government recognises that biofuels such as bioLPG and bioliquid alternatives to heating oil may play a role in future off-gas-grid decarbonisation, particularly for those properties that are not suitable for a heat pump. The Department has recently published a Call for Evidence to inform the development of a Biomass Strategy. This strategy will review the amount of sustainable biomass available to the UK, including liquid biofuels, and how this could be best used across the economy to achieve our net zero target. It will also assess the UK’s current biomass sustainability standards, which are some of the most stringent in the world, to see where and how we can improve them even further.

The Department also provides, and will continue to provide, support for households that are off the gas grid to switch to low carbon heating, including in homes where heat pumps are unsuitable. The Domestic Renewable Heat Incentive (DRHI) is targeted at (though not limited to) homes that are off the gas grid, and supports biomass boilers and pellet stoves, and solar thermal (for hot water) systems as well as heat pumps. The DRHI is scheduled to close in 2022, but the successor scheme to the DRHI, the Clean Heat Grant scheme is scheduled to launch in 2022, and will provide upfront capital grants for the installation of low carbon heat systems in domestic and small non-domestic buildings. The scheme will support homes off the gas grid to transition from high carbon fossil fuel heating sources such as oil to low carbon alternatives including biomass boilers where heat pumps are unsuitable.

The most recent estimates for fuel poverty in England are for 2019. An estimated 542,000 fuel poor households in 2019 did not have a gas grid connection.

This figure can be found in Table 10 of the fuel poverty detailed tables statistics: https://www.gov.uk/government/statistics/fuel-poverty-detailed-tables-2021.

One of the key priorities of this Government is putting in place policies to support a significant growth of offshore wind to 2030 and beyond. Within this, we are committed to supporting the development of floating offshore wind, as reflected by our ambitious target of 1GW of floating wind by 2030.

The Department has regular discussions with members of the floating offshore wind sector. Floating offshore wind projects will be eligible to bid in the next Contract for Difference allocation round, which will open in December 2021. This approach will provide the foundation for investment in a sustainable, competitive UK based supply chain from which we will learn to help plan our future approach and the feasible scale of ramp up of deployment.

One of the key priorities of this Government is putting in place policies to support a significant growth of offshore wind to 2030 and beyond. Within this, we are committed to supporting the development of floating offshore wind, as reflected by our ambitious target of 1GW of floating wind by 2030.

The Department has regular discussions with members of the floating offshore wind sector. Floating offshore wind projects will be eligible to bid in the next Contract for Difference allocation round, which will open in December 2021. This approach will provide the foundation for investment in a sustainable, competitive UK based supply chain from which we will learn to help plan our future approach and the feasible scale of ramp up of deployment.

Onshore wind is a key part of the Government’s strategy for low-cost decarbonisation of the energy sector. Achieving our ambitious 2050 Net Zero target will require significant increases in renewable electricity generation, and we will need to increase deployment across a range of technologies, including onshore wind.

The BEIS ministerial team and officials have regular discussions with the onshore wind industry about how we can achieve this, including the role of supply chains.

The Government has a long history of supporting the development and deployment of wave and tidal stream technologies in the UK. To date, we have provided sustained and targeted support enabling the wave and tidal stream sectors to move from initial concept onto prototypes and now the first arrays. Since 2003, various bodies across Government have provided innovation funding of £175m to the wave and tidal sectors. Wave and tidal stream projects remain eligible to compete in Pot 2 for Contracts for Difference auctions, with the next allocation round commencing December 2021.

The Government recently ran a Call for Evidence inviting views on the scope for marine technologies across the UK. This concluded on 30th September 2020 and we are currently reviewing the responses received.

Grants issued through Phase 1 of the Public Sector Decarbonisation Scheme are projected to reduce carbon emissions by around 100,000 tCO2e per annum.

The Public Sector Decarbonisation Scheme is not designed to produce financial savings, so although some projects may result in financial savings, no projection has been made of total financial savings.

The UK Government at this present time is not undertaking any direct actions to increase investment specifically in the onshore wind supply chain. The BEIS ministerial team and officials meet a wide range of developers and manufacturers in the course of our work, and the Department is always seeking to ensure that we make the most of the economic opportunities created by our world-leading decarbonisation commitments.

The Contracts for Difference (CfD) scheme is the Government’s main mechanism for supporting new renewable electricity generation projects in Great Britain, and in March 2020 we announced that onshore wind would be able to bid in the Contracts for Difference allocation round 4, which is planned to open in December 2021. In parallel, we have also consulted on proposals to strengthen our Supply Chain Plan policy to ensure that developers who bid into the Contracts for Difference allocation round 4 deliver on their commitments to build strong, competitive supply chains for all eligible technologies.

The decision to grant or refuse development consent for the proposed Aquind Interconnector will be taken by my Rt. Hon. Friend the Secretary of State for Business, Energy and Industrial Strategy.

My Rt. Hon. Friend the Secretary of State for Business, Energy and Industrial Strategy meets with my Rt. Hon. Friend the Secretary of State for Transport regularly to discuss all aspects of transport decarbonisation including the role for green hydrogen.

Officials from both departments work together bilaterally and through formal governance.

A good example of cross departmental working is the announcement of £3 million to support the development of the UK’s first Hydrogen Transport Hub in Tees Valley.

My Rt. Hon. Friend the Prime Minister’s 10 Point Plan confirmed our aim, working with industry, for 5GW of low carbon hydrogen production capacity by 2030 for use across the economy. As we progress towards this ambition, we would hope to see around 1GW of hydrogen production capacity by 2025.

The levels of green and blue hydrogen production that make up the 5GW will depend on market developments in the 2020s.

Further details will be set out in the forthcoming UK Hydrogen strategy which will be published this year.

The greenhouse gas emissions associated with different hydrogen production methods depend on a wide range of factors such as the feedstock energy, the efficiency of the hydrogen production plant and the CO₂ capture rate for carbon capture utilisation and storage (CCUS) enabled blue hydrogen production.

BEIS is working with industry, academia and regulators on understanding and comparing options for an emissions standard that will define low carbon hydrogen. As part of this work, we have been assessing emissions associated with a range of hydrogen production methods, including CCUS enabled blue hydrogen and electrolytic green hydrogen.

We will be releasing further detail on this work in the coming months and intend to consult on a UK Low Carbon Hydrogen Standard alongside the UK Hydrogen Strategy.

I meet with my Rt. Hon. Friend Mr Chancellor of the Exchequer regularly to discuss all aspects of my portfolio.

My Rt. Hon. Friend the Prime Minister’s 10 Point Plan confirmed our aim, working with industry, for 5GW of low carbon hydrogen production capacity by 2030 for use across the economy.

The UK has expertise and assets to support both electrolytic (green) and Carbon Capture Utilisation and Storage (CCUS) enabled (blue) hydrogen.

This ambition will be supported by a range of measures, including a £240 million Net Zero Hydrogen Fund and our hydrogen business models and a revenue mechanism to bring through private sector investment.

We will be consulting shortly on these measures, alongside the publication of the UK’s first ever Hydrogen Strategy.

The Government announced £171m of funding to support nine projects looking to decarbonise activity across five industrial clusters through the Industrial Decarbonisation Challenge. Projects in Scotland, South Wales, Humberside, Teesside and the North West will all receive government support to deploy a range of low-carbon infrastructure and technologies, including but not limited to, low carbon hydrogen. The hydrogen projects supported in these cluster locations will be enabled by the development of the CO2 transport and storage network (blue hydrogen),and will in turn enable decarbonisation across the cluster in line with the objectives of the fund.

The UK has expertise and assets to support both electrolytic (green) and Carbon Capture Utilisation and Storage (CCUS) enabled (blue) hydrogen. Our twin track approach to enable both routes will drive cost effective supply volumes in the 2020s in line with our 2030 5GW ambition, whilst scaling up green hydrogen. Government support for hydrogen production, through the Net Zero Hydrogen Fund and business models is intended to support both green and blue hydrogen projects.

We will publish the first ever UK Hydrogen Strategy this year which will set out the key steps needed in the 2020s to deliver our 5GW ambition and set the context for further scale up on the way to net zero, this will include further details on the role of green hydrogen.

The Industrial Decarbonisation Strategy set out that to be on track to deliver net zero, we expect that the minimum, in all future scenarios, is 20 TWh per year of fossil fuel use replaced with low carbon alternatives in 2030. Hydrogen, electrification and bioenergy all have a role to play, including green hydrogen. Further details will be set out in the forthcoming Hydrogen Strategy.

The Government is providing significant amounts of support to green hydrogen projects. We are investing up to £33m to support the development of a range low carbon hydrogen supply solutions, including green hydrogen projects, through the Hydrogen Supply competition. This includes:

o The Dolphyn project, led by ERM, received £3.1m to develop green hydrogen production from floating offshore wind. The project is due to complete in summer 2021.

o The Gigastack project, led by ITM Power, received £7.5m to further the development of hydrogen production by Polymer Electrolyte Membrane electrolysis. The project is due to complete in summer 2021.

o Four projects received funding to complete green hydrogen feasibility studies, which were completed in 2019.

o Phase 1 of the Green Distilleries Competition has funded a variety of hydrogen projects to complete a feasibility study on their technology. Nine of the 17 feasibility studies funded at Phase 1 are for low carbon hydrogen-related projects, including a novel electrolyser for the production of hydrogen

The forthcoming £240m Net-Zero Hydrogen Fund is intended to support both green and blue hydrogen production. We will be consulting on the design of the fund alongside publication of the first ever UK Hydrogen Strategy set to be published in Q2 of this year. We will also be considering what support is required for green hydrogen as part of developing long term, sustainable business models and the revenue mechanism, to stimulate private investment in new low carbon projects.

The UK is aiming for 5GW of low carbon hydrogen production capacity by 2030 for use across the economy, and we expect this to come from a combination of green and blue hydrogen production methods. The UK currently produces around 10 – 27TWh of hydrogen, most of which is not low carbon (‘grey’) for use in the petrochemical sector.

Production of large-scale blue hydrogen requires the necessary carbon capture and storage infrastructure to be in place, so we do not expect this to come forwards until the mid-2020s. The majority of low carbon hydrogen production during 2021 – 2024 is therefore likely to be green hydrogen, with end use focussed on sectors with existing demand such as transport and industry, with use in heat and power developing over time. To achieve our legally binding net zero commitments we will also need a complete switch to low carbon production, as addressed in our recent Industrial Decarbonisation Strategy.

Further details on how we will scale up production of low carbon hydrogen through the 2020s, as well as decarbonise existing grey hydrogen production, will be set out in the UK Hydrogen Strategy, which will be published in the coming months alongside further detail on the Net Zero Hydrogen Fund and business models to support hydrogen and industrial decarbonisation.

The UK is aiming for 5GW of low carbon hydrogen production capacity by 2030 for use across the economy, and we expect this to come from a combination of green and blue hydrogen production methods. The UK currently produces around 10 – 27TWh of hydrogen, most of which is not low carbon (‘grey’) for use in the petrochemical sector.

Production of large-scale blue hydrogen requires the necessary carbon capture and storage infrastructure to be in place, so we do not expect this to come forwards until the mid-2020s. The majority of low carbon hydrogen production during 2021 – 2024 is therefore likely to be green hydrogen, with end use focussed on sectors with existing demand such as transport and industry, with use in heat and power developing over time. To achieve our legally binding net zero commitments we will also need a complete switch to low carbon production, as addressed in our recent Industrial Decarbonisation Strategy.

Further details on how we will scale up production of low carbon hydrogen through the 2020s, as well as decarbonise existing grey hydrogen production, will be set out in the UK Hydrogen Strategy, which will be published in the coming months alongside further detail on the Net Zero Hydrogen Fund and business models to support hydrogen and industrial decarbonisation.

In his Spending Review 2020, my Rt. Hon. Friend Mr Chancellor of the Exchequer announced £320 million of funding for the Green Homes Grant Voucher scheme for use in financial year 21/22. Following a review, the voucher scheme closed to new applications on 31 March 2021. All valid applications made to the scheme up to 31st March 2021 will be processed, and all vouchers issued will be honoured – currently estimated as £220 million of expenditure.

The Government will be expanding its funding commitment for both the Local Authority Delivery element of the Green Homes Grant scheme and the Social Housing Decarbonisation Fund with £300 million of new funding and up to £100 million of recycled funding from the Green Homes Grant Vouchers, depending on take up. The funding will be granted in financial year 21/22, with delivery continuing through financial year 22/23.

The Green Homes Grant Local Authority Delivery scheme will deliver energy efficiency upgrades to low-income households via Local Authorities, using existing, or newly procured services from certified installers. All procurement or contracts to supply services under the GHG LAD scheme will be carried out at Local Authority level.

The full £500m has now been granted to Local Authorities in Phase 1 and Local Energy Hubs for Phase 2 and delivery has begun. We will be receiving further information on overall spend as the scheme progresses, however at this time the specific breakdown of payment to contractors is not available.

The Government announced £171m of funding to support nine projects looking to decarbonise activity across five industrial clusters through the Industrial Decarbonisation Challenge. Projects in Scotland, South Wales, Humberside, Teesside and the North West will all receive government support to deploy a range of low-carbon infrastructure and technologies, including but not limited to, hydrogen.

Specific projects that will be supporting and exploring the use of blue hydrogen include:

• The Northern Endurance Partnership (£24m of IDC funding). Creation of an offshore CO₂ transport and storage system connecting two innovative onshore capture projects into one initial geological store, enabling blue hydrogen production.
• Scotland Net Zero (£33.3m for onshore and offshore elements). Blue hydrogen is one element of carbon capture and storage plans, to help provide a tangible path to the decarbonisation of the Scottish industrial cluster.
• Net Zero Teesside (£28m). Project includes exploring ways to produce large scale blue hydrogen through the cluster plan project.
• Zero Carbon Humber Partnership (£21.5m). Delivering low-carbon infrastructure, comprising CO₂ and hydrogen transmission pipelines linking the region's major emitters, providing a pathway to deliver at-scale decarbonisation. Includes development of a blue hydrogen production facility to enable large industrial energy customers across the Cluster to switch from natural gas to hydrogen.
• South Wales (£20m). Blue hydrogen forms one part of their sustainable clean growth plan.

In line with government best practice, BEIS published the contract and legally required information on 17 March. The top three performance indicators have been redacted as they are commercially sensitive, and their publication would be inappropriate at this time.

Following a review, the Green Homes Grant Voucher Scheme closed to new applications on 31 March 2021. BEIS expects ICF to honour their contractual commitments. All compliant applications made to the scheme up to 31st March 2021 will be processed, and all vouchers issued will be honoured.

'Build Back Better: our plan for growth’ sets out the Government’s new framework for how the UK will build back better and drive longer-term growth following COVID-19. The plan, and its range of supporting strategies, take forward the best elements of the Industrial Strategy within a new approach that reflects the changed context since 2017. As part of this transition, we will consider how best to evolve the 2017 Grand Challenges and missions within a forthcoming Innovation Strategy; ensuring any renewed approach is responsive to, and able to effectively deliver current priorities – including our climate and clean growth commitments.

The remaining £300 million of funding for the Green Homes Grant Local Authority Delivery scheme will be transferred to the five local Energy Hubs before the end of March 2021.

Phase 1A of the Green Homes Grant Local Authority Delivery (LAD) scheme saw over £74million of funding being allocated to 55 Local Authorities in October 2020 across England.

Under Phase 1B, around £126million of grant offers were made to 81 Local Authorities in January 2021. Further details of these allocations will be announced in the coming weeks once Memorandums of Understanding with individual Local Authorities have been signed.

Phase 2 of LAD will see funding of £300m allocated to the five Local Energy Hubs this financial year who will work with Local Authorities in their region to deliver energy efficiency projects.

Further details of how the allocation of all this funding is spread geographically within England will be announced shortly, once all of the relevant legal processes and transactions have been completed as appropriate.

Phase 1A of the Green Homes Grant Local Authority Delivery scheme received 70 applications from Local Authorities. Phase 1B received 108 applications from Local Authorities.

Phase 1A of the Green House Grant Local Authority Delivery Scheme was not over-subscribed – although some applications were rejected which did not meet the eligibility criteria for the scheme or where the deliverability or value for money assessment did not meet the required standard.

Phase 1B was over-subscribed. We assessed all applications according to the same criteria and eligibility requirements. This resulted in 23 bids not being successful – 17 because they did not meet the eligibility criteria for the scheme.

The £2 billion pledged to the Green Homes Grant (GHG) is comprised of £500m of funding for the Local Authority Delivery (LAD) element and £1.5 billion of funding originally allocated to the Voucher Scheme for use in the 2020/21 financial year.

All £500m LAD funding is planned to be allocated to Local Authorities and Regional Energy Hubs, as appropriate, before the end of March 2021. This will be delivered in three phases:

• Phase 1A: over £74 million was allocated in October 2020 to fund energy efficiency projects in over 100 Local Authorities by June 2021.
• Phase 1B: around £126 million of grant offers were made to 81 Local Authorities in January 2021, for delivery of energy efficiency projects by September 2021.
• Phase 2: will see funding of £300m allocated to the five Local Energy Hubs this financial year, to deliver energy efficiency projects by December 2021.

The Voucher Scheme was designed to provide a short-term economic stimulus while tackling our contribution to climate change. However, the prevalence of Covid-19 since the scheme’s launch in September last year has led to an understandable reluctance on the part of the public to welcome tradespeople into their homes. We will continue to work with the scheme’s administrator to ensure voucher applications are processed as quickly as possible. As of 22 February 2021, 25,770 vouchers have been issued. £320 million of funding was announced for the Voucher Scheme for 2021/22 in the November 2020 Spending Review.

In the 2020 Spending Review, my Rt. Hon. Friend Mr Chancellor of the Exchequer announced £320 million of funding for the Green Homes Grant Voucher Scheme for 2021/22, as part of funding allocated to make homes and buildings more energy efficient and less carbon intensive.

The Green Homes Grant Local Authority Delivery scheme will upgrade the energy efficiency of around 50,000 homes of low-income households across England. The scheme is being delivered in three phases:

- Phase 1A: over £74million was allocated to 55 Local Authorities in October 2020 to fund energy efficiency projects in over 100 Local Authorities by June 2021.

- Phase 1B: £126million of grant offers were made to 81 Local Authorities in January 2021, for delivery of energy efficiency projects by September 2021. Further details of these allocations will be announced in the coming weeks once Memorandums of Understanding with individual Local Authorities have been signed.

- Phase 2: will see funding of £300m allocated to the five Local Energy Hubs this financial year who will work with Local Authorities in their region to deliver energy efficiency projects by December 2021. Further information on how these funds are being allocated within each region will be confirmed in due course.

The Green Homes Grant Local Authority Delivery scheme will upgrade the energy efficiency of around 50,000 homes of low-income households across England. The scheme is being delivered in three phases:

- Phase 1A; over £74million was allocated to 55 Local Authorities in October 2020 to fund energy efficiency projects in over 100 Local Authorities by June 2021.

- Phase 1B:  around £126million of grant offers were made to 81 Local Authorities in January 2021, for delivery of energy efficiency projects by September 2021. Further details of these allocations will be announced in the coming weeks once Memorandums of Understanding with individual Local Authorities have been signed.

- Phase 2:  will see funding of £300m allocated to the five Local Energy Hubs this financial year who will work with Local Authorities in their region to deliver energy efficiency projects by December 2021. Further information on how these funds are being allocated within each region will be confirmed in due course.

The 2020 Spending Review saw £320 million allocated to the Green Homes Grant Voucher scheme for 2021-22; this is independent of the £500m allocated to the Local Authority Delivery scheme in July 2020.

We have designed the voucher process to automate checks where possible and minimise the time taken for voucher approval. However, applications must be thoroughly checked for compliance with the scheme rules to help ensure value for money, consumer protection, and detect malpractice. As such, waiting times can vary.

We continue to work to reduce the time between application and issuance, where possible.

Homeowners and landlords submit grant applications for energy efficiency and clean heat measures they want to install in their properties, under the scheme. Once approved, vouchers are issued for each measure that has been applied for.

As of 4pm on 12th February, 74,317 applications have been received for the Green Homes Grant Voucher Scheme, with 23,553 vouchers issued.

BEIS will continue to monitor application data as the scheme progresses.

As of 4pm on 12th February, 23,553 vouchers have been issued to customers under the Green Homes Grant Voucher Scheme. The value of these vouchers is currently £101.15 million.

BEIS will continue to monitor application data as the scheme progresses.

In line with Government best practice, we will be publishing the top three performance indicators, outlined in the contract with ICF. BEIS will be publishing the contract and legally required information in due course.

As part of my Rt. Hon. Friend the Prime Minister's Ten Point Plan, £320 million of funding has been allocated the Green Homes Grant Voucher Scheme for 21/22 to make homes and buildings more energy efficient and less carbon intensive.

The Government is committed to delivering our net zero target and will take further steps to decarbonise the UK economy. The Prime Minister recently set out in his Ten Point Plan a £1bn investment to make our homes, schools, and hospitals greener, warmer and energy efficient. Further details on funding will be announced in due course.

In November 2020, the Prime Minister’s Ten Point Plan for a Green Industrial Revolution announced the introduction of the Home Upgrade Grant. We are committing £150 million through the Home Upgrade Grant to help some of the poorest homes become more energy efficient and cheaper to heat with low-carbon energy. The Home Upgrade Grant will support low-income households with upgrades to the worst-performing off-gas-grid homes in England. These upgrades will create warmer homes at lower cost and will support low-income families with the switch to low-carbon heating, contributing to both fuel poverty and net zero targets. The Home Upgrade Grant is due to commence in early 2022.

The Autumn 2020 Spending Review committed a further £60million of funding for the Social Housing Decarbonisation Fund to continue upgrading the least efficient social housing. This funding will support the Government’s 10-point plan and makes further progress towards delivering the Government’s commitment to invest in the energy performance of homes.

The Department contracted ICF to administer the Green Homes Grant Voucher Scheme. In line with government best practice, further information about the contract will be made available in due course.

There is no new £320m Green Home Grant scheme.

My Rt. Hon. Friend Mr Chancellor of the Exchequer announced this funding for the existing scheme in the Spending Review for the next financial year (2021-2022).

The Green Homes Grant Scheme is made up of the Voucher Scheme and the Local Authority Delivery (LAD) Scheme, allocated £1.5bn and £0.5bn, respectively, for the 2020-21 financial year.

Under the LAD scheme, Local Authorities bid for funding to support low-income households in their region. £74million has already been allocated; the remainder of the budget will be allocated this financial year to 5 Local Energy hubs and over 200 Local Authorities, delivering energy efficient upgrades to around 55,000 homes.

As of 8th February, the Green Homes Grant Voucher Scheme has received 71,953 applications. 22,165 vouchers have been approved and issued to customers; the value of these vouchers is £94.1 million.

Official statistics for the Green Home Grant Voucher Scheme will be published in due course.

We are engaging with and listening to feedback from customers and installers and based on this we have already made changes to the scheme to improve the roll-out rate. These include allowing subcontractors to more easily take part in the scheme, reducing the cost of accreditation by 50% for Green Homes Grant scheme installers on the cost of purchasing some PAS standards, streamlining certification processes where possible for installers and making the application process easier for customers.

We have numerous channels for dialogue with the supply chain and consumer groups, including roundtables with certification bodies, trade bodies and representatives from the industry. In December the Department held its first installer Webinar, taking questions and walking through the scheme details and processes with over 150 installers in attendance.

We continue to work with Trustmark and the scheme administrator to ensure as many companies as possible can take part in the scheme and increase the roll-out rate. The £6.9m skills competition we launched in September will provide training opportunities for energy efficiency and low carbon heating supply chains to deliver works and scale up to meet additional consumer demand.

The original funding of up to £1.5 billion for the Green Homes Grant Voucher Scheme was announced as a short-term stimulus, for use in the 2020/21 financial year. In the 2020 Spending Review, my Rt. Hon. Friend Mr Chancellor of the Exchequer announced £320 million of funding for the Green Homes Grant Voucher Scheme for 2021/22, as part of funding allocated to make homes and buildings more energy efficient and less carbon intensive.

The original funding of up to £1.5 billion for the Green Homes Grant Voucher Scheme was announced as a short-term stimulus, for use in the 2020/21 financial year. In the 2020 Spending Review, my Rt. Hon. Friend Mr Chancellor of the Exchequer announced £320 million of funding for the Green Homes Grant Voucher Scheme for 2021/22, as part of funding allocated to make homes and buildings more energy efficient and less carbon intensive.

The Department consulted the construction, insulation, energy and heating industries in the development of the Green Home Grant Voucher Scheme.

We continue to listen to and act upon feedback from stakeholders as we have done since the formation of the scheme.

The Green Homes Grant scheme is an energy efficiency retrofit scheme, focussing on insulation and low carbon heating. The scope of technologies currently included reflects our assessment of the best balance between economic stimulus and maximising value for householders and taxpayers.

Outside of the voucher scheme the Local Authority Delivery (LAD) element is in place to raise the energy efficiency of low income and low EPC rated homes in order to lift households out of fuel poverty whilst delivering progress towards our commitment to net zero by 2050.

We are listening to feedback on the scheme and are keeping the scope of eligible technologies under review.

The Primary measures in the scheme were chosen because they support jobs, are cost effective and have a large impact on carbon emissions. These measures tend to be those that householders would not install in the absence of the scheme and so government intervention through the Green Homes Grant Voucher Scheme will increase uptake. The Secondary measures are those that have a more limited impact on carbon emissions, but which still offer benefits in terms of energy efficiency.

We are keeping the scheme eligibility including eligible measures under review.

The contract has 10 Key Performance Indicators, which cover four major areas: Digital Platform; Customer Journey and Payment; Fraud and Audit; and Call Centre.

The contract has 10 Key Performance Indicators, supported by Service Credits covering the major areas of the contract.

The payment process for the Green Homes Grant is a four-step process that requires: the customer to confirm the work has been completed, the installer to record the work on the TrustMark database, the scheme administrator to check the conditions of the voucher issued have been met, and then the scheme administrator to make the payment.

To ensure consumer protection and value for money, the scheme administrator may be required to undertake fraud checks, for example a voucher may be randomly chosen for an on-site audit. The scheme administrator aims to pay as soon as possible after this process is complete.

The Government acknowledges the valuable contribution of hydropower to the UK energy mix over many decades, including at times when other renewables do not generate. Most hydro capacity was installed in Scotland last century, with a smaller amount in Wales and England, and most of these installations are still operating. Potential for further development is limited to small-scale projects. We met our projections five years early from the 2012 comprehensive review for hydro deployment by 2020.

The Government recently ran a Call for Evidence inviting views on what scope there is for marine technologies across the UK, including examining what additional support could move tidal range and other technologies towards commercialisation. This concluded on 30^th September 2020 and BEIS officials are currently reviewing the responses received.

As we set out in the Energy White Paper in December 2020, we will outline our next steps for addressing barriers to energy storage in our new Smart Systems Plan – to be published in spring 2021 in partnership with Ofgem.

The Department contracted ICF to administer the Green Homes Grant Voucher Scheme. In line with government best practice, further information about the contract will be made available in due course.

The Department contracted ICF to administer the Green Homes Grant Voucher Scheme, following a compliant competition, using the Crown Commercial Grants and Programme Services framework. The contract went out to tender on 13th August 2020 and ICF were awarded the contract.

As of 26 January, 17,618 vouchers have been issued under the Green Homes Grant. Vouchers will become redeemable once scheduled works are completed.

Official scheme statistics will be published in due course. BEIS will continue to monitor application data as the scheme progresses.

Official scheme statistics will be published in due course. BEIS will continue to monitor application data as the scheme progresses.

The payment process for Green Homes Grant scheme vouchers is a four step process that needs the customer to confirm the work has been completed, the installer to lodge the work with Trustmark, the scheme administrator to undertake scheme checks, and then proceeding to payment. In some cases, there will be a randomly selected on-site audit which will need to be carried out before the payment can be processed. As such the time it takes to process payments can vary.

The scheme administrator is prioritising the payment of vouchers and we are continuing to see an increase in the number of vouchers being paid out to installers once work is complete.

We are continuously listening to feedback from customers and installers and making improvements based upon it. We are working with consumers and installers to ensure they are clear on the information and checks required, so that vouchers can be paid as quickly as possible.

The Government is planning to publish a Heat and Buildings Strategy in the coming months, which will set out the immediate actions we will take for reducing emissions from buildings.

These actions include the deployment of energy efficiency measures and low carbon heating as part of an ambitious programme of work required to enable key strategic decisions on how we achieve the mass transition to low-carbon heat and set us on a path to decarbonising all homes and buildings.

Our Manifesto committed to a £3.8billion Social Housing Decarbonisation Fund over 10 years.

The Summer Economic Update announced a £50 million fund to demonstrate innovative approaches to retrofitting social housing at scale. The Demonstrator project is a short-term investment to learn lessons and innovate. A further £60 million has been allocated at the Spending Review (SR) to continue the development of the scheme into next year, in line with Manifesto commitments, and further funding will be confirmed at the multi-year SR.

The Department has had a number of meetings at both a Ministerial and official level with individual social landlords, local and regional networks, and representative bodies to discuss improving the energy performance of social housing, including as part of Social Housing Decarbonisation Fund demonstrator and the Green Homes Grant scheme.

For electricity, the network companies have specific licence obligations placed on them by Ofgem to ensure that losses are as low as reasonably practicable, and are set incentives under the network price control framework. It is now widespread practice across Great Britain to replace ‘high-loss’ cables with newer ‘low-loss’ substitutes, where this is efficient. Distribution Network Operators are also undertaking a program of replacing pre-1960s transformers with newer more efficient types.

For Gas, the Health and Safety Executive’s Iron Mains Risk Reduction Programme (IMRRP) is the biggest contributor to reducing losses on the gas network. This involves replacing old, corroded iron pipes with polyethylene (plastic) pipes. In order to support this work, Ofgem are consulting on allowing gas network companies over £8.5bn to invest and run their networks over the next 5 years and to help meet our net zero target. Through the IMRRP, the proportion of iron pipes has fallen from 80% of the distribution network in the mid-1970s to around 20% today, and is forecast to fall further to around 10% by 2026 and 5% by 2032.

We have estimated that the Green Homes Grant scheme, which is open to all homeowners including landlords, could support improvements in up to 600,000 homes. We do not collect information on whether applicants who are landlords let their property to private residential or social tenants as part of the scheme.

The following information relating to the tenure type of the property is collected through the application process of the Green Homes Grant (GHG) Voucher Scheme.

Property owner:

• Owner-occupier
• Landlord

If the property is owned by a landlord, the following information is also collected:

• Individual (whether sole or in a group)
• Trustee
• Corporate entity (including company, LLP, CIC, Corporation sole)
• Overseas companies
• Charities

As part of the application process for the Voucher Scheme, we do not ask landlords to declare if they let their property to private residential or social tenants. Therefore we are unable to provide information on the tenure types of landlord-let properties.

Similarly, for the Local Authority Delivery (LAD) element of the GHG, applications for funding under Phase 1 of the scheme do not require local authorities to submit specific details on the types of properties they plan to upgrade. However, it is a requirement of the scheme that local authorities will submit regular GHG LAD data reports to the Household Energy Efficiency Statistics team throughout the project delivery period, and these will include data on property tenures of the homes they are working to upgrade.

The minimum standard energy efficiency regulations provide a limited number of temporary exemptions for privately rented properties with an Energy Performance Certificate (EPC) rating of F or G, where it is not technically advisable or financially feasible to bring those properties up to an EPC E rating. The majority of exemptions available under these regulations are valid for a period of five years, effective from their date of registration.

The Government and its agencies do not have this information.

Terms and conditions of employment are for negotiation and agreement between employers and employees (or their representatives). Once agreed, these form a legally binding contract of employment. If the employer changes any of the terms without the employee’s agreement, the employee may be entitled to seek legal redress. Where the employer recognises a trade union, consent for the changes can be facilitated through collective bargaining.

This information is not held centrally and can only be obtained disproportionally.

The Government is looking at options for the financing of new nuclear projects. In 2019, we consulted on a Regulated Asset Base as a possible funding model that could improve value for money and reduce the cost of capital of future nuclear projects. We will respond in due course.

BEIS has regular discussions with Ofgem, including on what measures might be needed to help remove the barriers to consumer engagement. This includes the potential for collective switching and consideration of the results from Ofgem’s previous trials. The Government will set out more details in due course.

The Oil and Gas Authority’s (OGA) mandate to maximise economic recovery of oil and gas (MER UK) is not within scope for this review. This review will look at policy on the future UK offshore oil and gas licensing regime as part of the wider aim of achieving net zero emissions by 2050. The review will consider whether regulators have the right powers and processes in place to effect any changes to our future licensing regime.

On 3 September, the Government announced that it would conduct a review of policy on the future UK offshore oil and gas licensing regime. Details of that announcement can be seen on gov.uk at https://www.gov.uk/government/news/government-launches-review-into-future-offshore-oil-and-gas-licensing-regime. Terms of reference and emerging findings from this review will be published in due course.

The requirements for tradespeople completing work under the scheme are in line with the requirements for the Energy Company Obligation (ECO) scheme, requiring similar high standards of work, such as Publicly Available Specification (PAS) 2030 certification. Multiple measures can be installed in one home from both ECO and the Green Homes Grant (GHG) schemes.

Millions of additional homes that would not be covered by ECO will be eligible to benefit from the GHG to deliver significant carbon reductions and thermal savings. The GHG will also build capacity and skills in the supply chain for longer-term decarbonisation objectives.

The requirements for works carried out under the Green Homes Grant scheme are in line with those carried out under the Energy Company Obligation scheme and must be to Publicly Available Specification 2030 standards. Tradespeople must be registered with TrustMark, and certified with the Microgeneration Certification Scheme (MCS) where installing heating measures. Under TrustMark and MCS, installer organisations have their work regularly inspected to ensure that works achieve consistent quality.

The Green Homes Grant and the Energy Company Obligation schemes both have different objectives, target audiences, eligibility criteria and funding mechanisms, therefore, it would not be appropriate for the schemes to be merged.

The Government publishes monthly deployment statistics for both Domestic Renewable Heat Incentive (DRHI) and the Non-Domestic Renewable Heat Incentive (NDRHI), available at: https://www.gov.uk/government/collections/renewable-heat-incentive-statistics. The table below provides data correct as of July 2020.

The Non-Domestic RHI has provided support for over 20,000 renewable heating installations, creating green jobs, and helping to develop the GB renewable heating industry.

The breadth and cost of an extension to the Non-Domestic RHI means that to provide good value for money for the taxpayer, we are applying a targeted approach in continuing support for the Non-Domestic low carbon heating industry.

The Green Gas Support Scheme, due to launch Autumn 2021, is expected to help treble the level of green gas in the grid by 2030, creating further green jobs, particularly in rural areas. Sustained support for the industry will be provided through the new allocation of Tariff Guarantees, incentivising the more cost-effective Non-Domestic projects.

We have also been keen to avoid potential job losses and damage to the industry that might result from delays due to Covid-19. Recently announcing an extension of 6 months for eligible NDRHI projects, that may struggle to meet the 31^st March 2021 application deadline.

Additionally, the soon to be launched Green Homes Grant Scheme which will fund up to two thirds of the cost of home improvements for over 600,000 homes, supporting over 80,000 jobs in green construction.

For more information on these proposals please see the below links:

GOV.UK page for information on the Green Homes Grant Scheme

https://www.gov.uk/guidance/green-homes-grant-scheme-register-as-a-certified-tradesperson-or-business;

Consultation and Impact Assessment on Future Support for Low Carbon Heat

https://www.gov.uk/government/consultations/future-support-for-low-carbon-heat;

Consultation and Impact Assessment NDRHI: Ensuring a Sustainable Scheme

https://www.gov.uk/government/consultations/non-domestic-renewable-heat-incentive-ensuring-a-sustainable-scheme;

Announcements and Impact Assessment relating to further changes to RHI support and Covid-19 response

https://www.gov.uk/government/publications/changes-to-the-renewable-heat-incentive-rhi-schemes.

My Rt. Hon. Friend the Secretary of State for Business, Energy and Industrial Strategy has set out his intention to publish the Energy White Paper this Autumn.

The Energy White Paper will address the transformation of our energy system as we deliver net-zero emissions by 2050, including the importance of flexibility.

We have taken clear actions to enable flexibility through our Smart Systems and Flexibility Plan, including reforming markets so that they properly reward flexibility, removing barriers for flexible technologies, and investing in flexible innovation.

The Government is working on a range of measures to realise the benefits of a smarter and more flexible energy system. We are delivering the actions in the Government’s Smart Systems and Flexibility Plan to remove barriers to smart technologies such as storage and improve access to energy markets for new business models.

Smart charging of electric vehicles during off-peak periods when electricity demand is low can help avoid triggering unnecessary network reinforcement. Furthermore, this technology helps utilise renewable energy and can benefit consumers with cheaper electricity. The Future Energy Scenarios (FES) 2019 produced by National Grid predicts that smart charging could by 2030 shift nearly 50% of EV demand away from peak times. Vehicle-to-Grid technology, where electric vehicles provide power back to local networks, presents an opportunity for EVs to be a significant electricity storage resource.

Next year we intend to mandate that all new private chargepoints must have smart functionality and in 2018 we invested £30 million to support vehicle-to-grid technology. The Electric Vehicle Energy Taskforce reported in January 2020, making 21 proposals on how we can maximise the uptake of smart charging and ensure the energy system is ready for electric vehicles.

Hydrogen is one of a number of options with the potential to play an important role in decarbonising heat, including heat networks, heat pumps, hydrogen and biogas.

Further work is needed to assess the safety and feasibility case and better understand the costs and benefits of using hydrogen in place of methane in the gas grid. We are working with industry to define and take forward a full programme of work to achieve this.

The Government is also currently investing up to £121m in a range of innovation programmes to explore and develop the potential of low carbon hydrogen for end uses sectors. This includes £25m on the Hy4Heat programme which is seeking to investigate if it is technically possible and safe to replace methane with hydrogen in appliances for residential and commercial buildings and evaluate the likely costs and performance.

Hydrogen could play a key role in eliminating our contribution to climate change by 2050 and is one of the options being explored to decarbonise heat in the UK alongside heat pumps, heat networks and biogas. Further work is required to fully test and assess the potential of hydrogen as an option for decarbonising heating.

Prototype ‘hydrogen-ready boilers’ are being developed under the £25m BEIS Hy4Heat programme. This programme is seeking to investigate if it is technically possible and safe to replace methane with hydrogen in appliances for residential and commercial buildings and evaluate the likely costs and performance. The programme is due to be completed in 2021, and the Department will be reviewing the outputs from this technical work as it progresses.

On 12 June the Department published a Call for Evidence on Energy-related Products. This consultation invites views on how to maximise the energy savings potential of boilers and alternative heating systems, and if this would help bring to market low-carbon heating technologies including hydrogen.

Biomethane is currently injected into the gas grid, supported in part by the Renewable Heat Incentive. The Government is currently consulting on the creation of a Green Gas Support Scheme to increase the amount of biomethane in the grid.

Blending low carbon hydrogen with natural gas has the potential to lower carbon emissions. The HyDeploy project has been commissioned by Gas Network Operators to investigate the option of blending up to 20% hydrogen with natural gas in the gas grid. The Health and Safety Executive have granted an exemption to the current Gas Safety and Management Regulation to the hydrogen content limit of 0.1% for the duration of the HyDeploy project. This is subject to strict safety arrangements being in place. BEIS will continue to pay close attention to the results from this project, and will take these into account in any future policy development.

The Government is committed to delivering clean growth and reaching our net zero target.

We are already making good progress in decarbonising the power sector. More than half of our electricity (54%) was generated from low-carbon sources in 2019 and renewables’ share of generation now stands at a record 37%. Meanwhile, the use of coal in our electricity mix has dropped from 39% in 2012 to just 2% in 2019. Recently we celebrated a two-month milestone of coal-free power generation.

We must continue to embrace the opportunities offered by technology to accelerate the transition to a cleaner future including innovations in energy storage technologies, smart and no-waste electricity grids, zero-emission vehicles, and eco-friendly buildings.

That is why, at the Spring Budget, we announced an ambitious support package worth over £2bn for our low carbon economy, including £270m new exchequer funding for heat networks, £100m for heat pumps and biomass and a commitment to at least double the size of the Energy Innovation Programme.

The Government recognises the need to fully consider the complex interactions between different sectors of the economy, as it progresses on its ambitious programme of decarbonisation, and the potential benefits that systems-based thinking can bring to this.

In 2019 BEIS introduced standardised digital platform in 2019 which was used for Home Energy Conservation Act responses to be collected and collated in consistent way. In addition, local authorities are required under the legislation to publish their report.

BEIS is exploring options on the best use of the submitted data, particularly to inform policy thinking on energy efficiency, and to build an ongoing picture of local and national energy efficiency policy delivery.

We are supporting local authorities, local areas and local economies through a range programmes. Our Local Energy programme is supporting Local Enterprise Partnerships (LEPs), local authorities and communities in England to play a leading role in decarbonisation and clean growth. Almost £20 million has been invested and the programme has funded a range of measures designed to build local capacity and capability and encourage joined-up working between local areas, investors and central government, including:

• Five Local Energy Hubs, which have been established across England to provide local authorities and LEPs with access to expertise to help develop and secure investment in low carbon projects;
• Good practice guidance, tools and resources for use by local authorities and LEPs; and
• An online communications platform for local authorities and LEPs to share information and learn from each other.

In addition to direct funding, local authorities can voluntarily participate under the ‘LA Flex’ mechanism of ECO. This allows local authorities to identify low income and vulnerable households in their area and refer them to the larger energy suppliers, who have an obligation target to deliver energy efficiency measures under ECO.

There are no plans to extend the Development Consent Order for the Swansea Bay Tidal Lagoon which was granted on 9 June 2015.

The Government remains open to consideration of marine energy technologies, provided they can demonstrate that they represent value for money to the taxpayer and consumer.

The Government is committed to exploring the development of hydrogen as a strategic decarbonised energy carrier, alongside electricity and other decarbonised gases.

There are a number of workstreams underway in this area, involving regular engagement with industry and academic stakeholders across the hydrogen value chain to understand the potential of hydrogen deployment across the energy system, in line with our net zero commitments. A recent example is the newly formed Expert Group advising on the development of sustainable business models to support low carbon hydrogen production.

Specific policies and programmes may be subject to consultation in due course. We are currently considering options for formalising regular engagement between Government and Industry on hydrogen, with the key aim of stimulating activity in the 2020s that will test potential of hydrogen in meeting net zero.

The Government is planning to publish a Heat and Buildings Strategy in due course, which will set out the immediate actions we will take for reducing emissions from buildings as part of an ambitious programme of work to enable key strategic decisions to set us on a path to decarbonising all homes and buildings.

Smart heating controls/smart thermostats are already a feature of existing heat and energy efficiency policy; for example, they are eligible for the Energy Company Obligation (ECO). Some variants, with additional features, have been approved under the ‘innovation’ element of ECO which means there is a greater incentive to install them.

The information is provided below:

• 2018 – challenge concerned GEMA’s decision in relation to changing the charges for certain generators to access the electricity network. Judgement in favour of GEMA in summer 2018

• 2018 – challenge by licensee to a direction that had been issued to them by GEMA (to take specified steps in the context of a randomised controlled collective switch trial). Concluded in 2018. Judgement in favour of GEMA in 2018.

• 2018 – challenge brought in Scotland against GEMA’s rejection of an application for accreditation under the Feed-in Tariffs Scheme. Judgement in favour of GEMA in 2018.

• 2019 – challenge to GEMA decision by an offshore wind generator that the physical failure of one of the offshore transmission owner’s (OFTO) subsea electricity cables should be treated as an Income Adjusting Event under the OFTO licence. Judgement in 2019 against GEMA.

• 2019 – challenge by a licensee against GEMA’s retail price cap decision. Judgement in 2019 against GEMA.

• 2019 – challenge relating to whether GEMA had certain powers under the Domestic Renewable Heat Scheme. GEMA were co-defendants with BEIS. Judgement in November 2019 in favour of GEMA. Application for permission to appeal was refused in 2020.

To date, no judicial reviews have been carried out in 2020.

To date, there has been low uptake of hybrid installations with Metering and Monitoring Service Packages (MMSPs) in the domestic RHI. The domestic RHI, including MMSPs, will close to new applications in March 2022. Therefore, the Government does not consider that extending the MMSP requirements to include sensors in fossil fuel boilers in hybrid installations would provide significant useful data on the overall performance of hybrid heating systems.

The Government will be gathering further evidence on the performance of hybrid heating systems as part of the £16.5m Electrification of Heat Demonstration Project. The project is expected to run until March 2022.

The current approach to offshore wind development allows developers to choose where and when to construct windfarms. Developers can also choose to build the associated transmission assets to bring the energy to shore, before they are tendered by Ofgem to a third party to own and operate. This developer led and competitive approach has led to significant savings for the consumer.

This approach was designed at a time when offshore wind was a nascent sector and industry expectation for deployment was much lower. However, in the context of increasingly ambitious targets for offshore wind the current approach to development of transmission assets may not be appropriate and could become a major barrier to delivery.

BEIS officials are working together with key stakeholders, including Ofgem, National Grid Electricity System Operator and The Crown Estate, to consider an appropriate framework for offshore transmission to support increased ambition for offshore wind.

BEIS provides funding for energy efficiency projects in the public sector through the Public Sector Energy Efficiency Loan Scheme. This funding, managed by Salix Finance, has delivered over 17,000 projects since the scheme started in 2004, significantly improving energy performance in the public sector. The capital pot for England totals £385 million at the end of 2020/21.

Salix have continued to operate the scheme during the Covid-19 lockdown period and public sector organisations are still able to apply for zero interest loans to cover their energy efficiency work.

We will set out a summary of responses to Call for Evidence on Energy Performance Certificates in Buildings, alongside an action plan to enhance and strengthen the current EPC framework, later this year.

Energy Performance Certificates display both an Energy Efficiency Rating (EER), an indicator of the assumed energy cost per square metre of a home, and the Environmental Impact Rating (EIR), an indicator of the carbon dioxide emissions intensity per square metre of a home.

The Standard Assessment Procedure (SAP) and Reduced Data SAP (RDSAP) methodologies which underpin Energy Performance Certificates for homes, and the SBEM methodology for non-domestic premises, are updated regularly in line with updates to Part L of the Building Regulations.

We will keep it under review as we develop policies and plans for decarbonising buildings and reducing fuel poverty.

The Standard Assessment Procedure (SAP) and Reduced Data SAP (RDSAP) methodologies which underpin Energy Performance Certificates are updated regularly in line with updates to Part L of the Building Regulations. We will keep it under review as we develop policies and plans for decarbonising buildings and reducing fuel poverty. Assessments of impact on installation of low carbon heat will be made on a policy by policy basis.

We remain committed to delivering the aspiration set out in the Clean Growth Strategy for as many homes as possible to reach EPC Band C by 2035 where practical, cost effective and affordable.

How EPCs are used in the policy package to meet the target in the Clean Growth Strategy for homes to be EPC band C by 2035 and the consequent impacts, will continue to be tested as part of individual policy consultations. We will keep the underlying methodology for calculating EPC ratings under review as we develop policies and plans for decarbonising homes and for reducing fuel poverty.

We remain committed to delivering the aspiration set out in the Clean Growth Strategy, our strategy for meeting the UK carbon budgets, for as many homes as possible to reach EPC Band C by 2035, and fuel poor homes by 2030, where practical, cost effective and affordable.

How EPCs are used in the policy package to reach UK carbon budgets and the consequent impacts, will continue to be tested as part of individual policy consultations. We will keep the underlying methodology for calculating EPC ratings under review as we develop policies and plans for decarbonising buildings and for reducing fuel poverty.

In July 2019, the Department introduced within the Capacity Market, through the Capacity Market (Amendment) (No. 5) Rules 2019,[1] the carbon emissions limits contained in the recast “Electricity Regulation” (Regulation (EU) 2019/943. These changes ensure that new capacity, which started commercial production on, or after 4 July 2019, and which does not comply with the emission limits, cannot be awarded capacity agreements in capacity auctions held from 2020 onwards, or receive capacity payments.

The Department ran two further consultations, between 22 July 2019 and 13 September 2019[2] and between 3 February and 2 March 2020,[3] on legislative changes intended to apply these limits to capacity which existed before 4 July 2019. The Government Response to these consultations, published on 20 May 2020,[4] outlines a system for monitoring and verifying compliance with the emissions limits, as well as confirming the intention to apply the limits to existing capacity from 1 October 2024.

The Department will make the necessary changes to the Capacity Market Rules ahead of the opening of the prequalification period for the capacity auctions scheduled for early 2021.

[1]https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/818851/Capacity_Market__Amendment___No._5__Rules_2019.pdf

[2] https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/829746/proposals-capacity-market-emissions-limits-consultation.pdf

[3] https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/862674/capacity-market-consultation-future-improvements.pdf

[4]https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/886147/Future_improvements__emission_limits_and_coronavirus_easements_-_government_response_to_consultations.pdf

Hydropower schemes with accreditation deadlines falling between 1 March and 30 September 2020 are within the scope of the Feed-In Tariffs (Amendment) (Coronavirus) Order 2020.

The UK’s NDC will be based on robust analysis undertaken for domestic climate change mitigation policy which, in line with the requirements of the Climate Change Act, is informed by advice from the independent Committee on Climate Change.

Our existing carbon budgets are amongst the most ambitious targets in the world. We have met our first two carbon budgets and our latest emissions projections show that we are on track to meet the third. However, we recognise the need for further action to meet the fourth and fifth carbon budgets.

2020 will be a Year of Climate Action, and we will bring forward ambitious new plans throughout the year to reduce emissions across key sectors of the economy – including an Energy White Paper and Transport Decarbonisation Plan.

The Committee on Climate Change will advise on the level of the sixth carbon budget in September this year.

The UK has long been a leader in carbon pricing policy – introducing the world’s first multi-industry carbon trading system in 2002. Carbon pricing is a crucial tool in decarbonising energy and carbon intensive industries, as well as supporting our net zero greenhouse gas emissions by 2050 commitment.

Whatever our future relationship with the EU, we will seek to ensure that our future approach is at least as ambitious as the existing scheme and provide a smooth transition for the relevant sectors.

Network regulation is a matter for the independent regulator, Ofgem. Under its RIIO price control framework, Ofgem’s cost benefit assessments take into account the whole life costs and impacts of Distribution Network Operator (DNO) investments. In addition, DNOs are funded and incentivised to maintain existing assets to ensure their longer-term resilience.

Network regulation is a matter for the independent regulator, Ofgem. Under the RIIO price control, Ofgem provides Distribution Network Operators (DNOs) with sufficient allowances to finance and develop their networks to meet the needs of current and future consumers. Ofgem also incentivises DNOs to deliver cost efficiencies and maintain service quality which guides DNO procurement and supply chain strategies. The Department has not held any meetings with Ofgem on DNO supply chain strategies.

Following our departure from the EU, the UK will be bringing forward its own, increased NDC well ahead of COP26. The UK NDC will be built on the foundations of well-established UK analysis and policy development for domestic climate change mitigation, used to set the UK’s fifth carbon budget (2028-32) under the Climate Change Act.

The Committee on Climate Change (CCC) was established by the Climate Change Act 2008, as the independent statutory body that provides expert advice to the Government and the Devolved Administrations on climate change mitigation and adaptation. This includes advice on the level of each carbon budget, the respective contributions that different sectors could make and the extent to which carbon budgets could be met through the use of flexibilities. The target year for the UK’s upcoming Nationally Determined Contribution (NDC) falls within the UK’s fifth carbon budget period (2028-32). We will be bringing forward a UK NDC well ahead of COP26, which will be built on the foundations of the well-established UK analysis and policy development that informed the setting of the fifth carbon budget. The CCC published its advice to Government on the level of the fifth carbon budget in November 2015 and the budget was set in June 2016, in line with the requirements of the Climate Change Act.

In June 2019, the UK government set a legally binding target to achieve net zero greenhouse gas emissions from across the UK economy by 2050. We are the first major economy in the world to legislate for a net zero target, which will end the UK’s contribution to climate change. 2020 will be a vital Year of Climate Action across the UK, and we will be setting out ambitious plans in the run-up to COP26 to deliver on our world-leading net zero ambition.

Following our departure from the EU, the UK will be bringing forward its own, increased NDC well ahead of COP26. The UK NDC will be built on the foundations of well-established UK analysis and policy development for domestic climate change mitigation, used to set the UK’s fifth carbon budget (2028-32) and described in the Clean Growth Strategy. In its Net Zero advice, the Committee on Climate Change was clear that the Clean Growth Strategy continues to offer the right framework for the ambitious action needed to deliver net zero.

The Renewable Heat Incentive (RHI) has budget confirmed until March 2021. We are considering a full range of options for successor arrangements to the RHI, in line with the Government’s commitment to achieving net zero.

We are consulting on bringing forward the end of the sale of new petrol and diesel vehicles; including hybrids under this definition for the first time, to 2035, or earlier if feasible. We will be engaging with stakeholders, including those in the energy sector, to understand what support will be required to enable this transition, and minimise the impact on businesses, workers and consumers across the UK, building on the significant demand and supply side measures in place.

Our analysis suggests limited additional impact on electricity generation capacity up to 2030. The electricity market is already set up to promote investment in generation capacity to meet demand; for example, the Contracts for Difference scheme facilitates significant investment in low-carbon generation. This complements numerous measures to ensure a smarter, more flexible energy system, increasing the efficiency of the electricity system to prepare for electric vehicles. Ofgem, the independent energy regulator, is developing its next set of energy network price controls to incentivise network companies to be ready for the future needs of the energy system, including the required capacity required to support EVs.

‘Smart’ charging of electric vehicles (at off-peak times) can reduce demand from Electric Vehicle charging at peak times. Government has taken powers in the Automated and Electric Vehicles Act to mandate that all charge points sold or installed in the UK must be smart enabled and has recently consulted on secondary regulations. Government has also invested £30 million to support vehicle-to-grid technology, where the storage capability of electric vehicle batteries provides electricity back to the grid.

We are currently undertaking a review of our evidence on levelised costs of electricity generation, which will be published in due course. BEIS’s most recent published assessment of electricity generation costs can be found in the generation costs report (2016)^[1].

[1] https://www.gov.uk/government/publications/beis-electricity-generation-costs-november-2016

The July 2017 Smart Systems and Flexibility Plan set out 29 specific actions for BEIS, Ofgem and industry to deliver in order to remove barriers to smart technologies such as storage, enable smart homes and businesses, and to ensure markets reward the value that flexibility provides to the system. In October 2018 we published a Progress Update with nine new actions.

We have now implemented 18 of the original 29 actions, five of the nine new actions and, as per the original plan, we are committed to delivering the remainder by 2022.

Government is supporting the development of flexibility markets through the delivery of the actions in the Smart Systems and Flexibility Plan and continued innovation funding for flexibility market platforms.

The Smart Systems and Flexibility Plan set out a number of actions to ensure that markets fairly reward flexibility for the value it provides to the system. As part of this plan, network operators are taking action to develop local flexibility markets and the Electricity System Operators work to reform the balancing services markets is opening up access to a wider range of flexible technologies. We are now considering the next phase of this work and will work closely with Ofgem and industry to develop this throughout 2020. ​​

In 2019, we launched the “FleX” innovation competition, which will support the development and demonstration of innovative solutions to value and trade flexibility in the energy system. Details of winning projects will be formally announced in due course.

We welcome interest in the FleX Competition which was launched by BEIS in 2019 to support the development and demonstration of innovative solutions to value and trade flexibility in the energy system. Following selection and detailed due diligence of the project teams which will be supported by the FleX Competition, details of winning projects will be formally announced in due course.

In line with the FleX Competition guidance, the projects are due to be completed by end December 2021 with dissemination activities led by the individual project teams also taking place during the project delivery period.

Details of the FleX Competition can be found on gov.uk: https://www.gov.uk/government/publications/flexibility-exchange-demonstration-projects-flex-competition.

Sulphur Hexafluoride (SF₆) is a potent fluorinated greenhouse gas (F-gas) that contributes to climate change. F-gases currently represent about 3% of UK greenhouse gas emissions, with SF₆ emissions representing around 3% of those F-gas emissions. The UK has made significant progress in reducing and controlling the use of F-gases, highlighted by the 34.3% reduction in UK emissions of all F-gases since 1995 levels.

Compliance with the F-gas Regulation 2014 is how the UK currently controls SF₆ emissions. Under the Regulation, equipment containing SF₆ is subject to requirements on leak reduction, checking and rapid repair using appropriately qualified personnel. The intentional release of SF₆ is also prohibited and steps must be taken to minimise unintentional release.

We are currently reviewing the provisions of the F-gas Regulation which we are required to complete by no later than 2022. As part of the review, we will consider how we can go further in support of the UK's net zero target. We will be assessing all parts of the Regulation, including the provisions relating to SF₆ use, in light of this.

Sulphur Hexafluoride (SF₆) is a potent fluorinated greenhouse gas (F-gas) that contributes to climate change. F-gases currently represent about 3% of UK greenhouse gas emissions, with SF₆ emissions representing around 3% of those F-gas emissions. The UK has made significant progress in reducing and controlling the use of F-gases, highlighted by the 34.3% reduction in UK emissions of all F-gases since 1995 levels.

Compliance with the F-gas Regulation 2014 is how the UK currently controls SF₆ emissions. Under the Regulation, equipment containing SF₆ is subject to requirements on leak reduction, checking and rapid repair using appropriately qualified personnel. The intentional release of SF₆ is also prohibited and steps must be taken to minimise unintentional release.

We are currently reviewing the provisions of the F-gas Regulation which we are required to complete by no later than 2022. As part of the review, we will consider how we can go further in support of the UK's net zero target. We will be assessing all parts of the Regulation, including the provisions relating to SF₆ use, in light of this.

We are grateful to Henry Dimbleby and his team for their work on this independent review examining our food system and the vital role it plays in all our lives. We are committed carefully to consider the Independent Review and its recommendations and will be responding in full with a White Paper in the next six months. The White Paper will set out the Government’s ambition and priorities for a food system that will deliver for people, nature and climate, and support our farmers to produce the high-quality, high-welfare produce for which they are renowned.

Marine protection is a devolved matter and the information below relates to England only.

The Marine Management Organisation (MMO) has developed an ambitious three-year programme to manage fishing activity in English offshore Marine Protected Areas (MPAs). We recognise the urgency to establish management measures to protect the marine environment and proposals for the first four MPAs have been published for consultation. The consultation closed on 28 March and the MMO is currently reviewing the responses.

The Government is currently reviewing its policy on large pelagic trawlers. However, these vessels target fish within the water column and are unlikely to damage the seabed habitats, such as reef and sediment habitats, for which most MPAs are designated. The MMO will assess the impact of all fishing types and consider if management measures are required. Not all fishing activities in MPAs will require management, only those likely to damage the designated features, as assessed on a site by site basis.

Marine protection is a devolved matter and the information below relates to England only.

The Marine Management Organisation (MMO) has developed an ambitious three-year programme to manage fishing activity in English offshore Marine Protected Areas (MPAs). We recognise the urgency to establish management measures to protect the marine environment and proposals for the first four MPAs have been published for consultation. The consultation closed on 28 March and the MMO is currently reviewing the responses.

The Government is currently reviewing its policy on large pelagic trawlers. However, these vessels target fish within the water column and are unlikely to damage the seabed habitats, such as reef and sediment habitats, for which most MPAs are designated. The MMO will assess the impact of all fishing types and consider if management measures are required. Not all fishing activities in MPAs will require management, only those likely to damage the designated features, as assessed on a site by site basis.

Marine protection is a devolved matter and the information below relates to England only.

For Marine Protected Areas (MPAs) in England, an assessment of impacts is prepared when sites are designated. The assessment assesses the costs and benefits of designating a site but does not include specific details on the benefits to coastal communities. It is difficult to quantify such benefits accurately.

The costs and benefits would only apply where an activity has been restricted. The appropriate regulator will assess sites and propose appropriate management of fishing activity where required. Management may not be required for all fishing gears because only those which are likely to damage the protected features of a site need to be managed. Large pelagic trawlers target fish within the water column and are unlikely to damage the seabed habitats, such as reef and sediment habitats, for which most MPAs are designated.

The Government is currently reviewing its policy on large pelagic trawlers operating in UK waters. Any action needs to be evidence-based and in line with the UK/EU Trade and Cooperation Agreement.

The Government’s proposals to introduce a deposit return scheme for drinks containers recognise the need to ensure convenience and wide availability of return points for consumers, ensuring they can easily fit the scheme into their everyday lives. With this in mind, our current analysis has been designed with sufficient return points in place to reflect the policy proposal that deposits can be redeemed in settings that fit different consumer daily routines, thus avoiding the need for consumers to make additional journeys purely for the sake of returning their drinks containers. On this basis, there is no intention to carry out further assessment of consumer vehicular emissions at this time.

The Government is committed to introducing a deposit return scheme which is based on the principles of accessibility and convenience for all members of society. While all deposits placed on in-scope drinks containers will be redeemable, we do recognise the potential for an increased burden this could place on some consumers, particularly in lower income groups, to collect and return their containers to redeem their deposits. To ensure this activity and behaviour change is accurately accounted for in our analysis, the Government intends to carry out further research this year on the effect a deposit return scheme might have on specific groups in society, including those on lower incomes.

Defra has funded Environment Agency/WRAP guidance on the proper collection and reprocessing of flat glass with the aim of increasing recycling rates. The Environment Agency is set to review this in May 2021.

The Environmental (England and Wales) Permitting Regulation 2016 includes a statutory permit condition for landfill and incineration permit holders, placing a restriction on plastic, metal, paper or glass separately collected for reuse or recycling from being accepted for landfill or incineration unless it is the result of treatment operations and delivers the best environmental outcome in accordance with the waste hierarchy.

Flat glass is a common waste product from construction and demolition. In the Resources & Waste Strategy 2018, we committed to increasing resource efficiency and minimising waste in the construction sector, through working with the Green Construction Board.

The Government's commitment to introducing a DRS is part of our commitment to reform producer responsibility systems to incentivise producers to take greater responsibility for the environmental impacts of their products.

The Government is keen to avoid any unintended consequences of introducing a DRS. We have consulted widely with industry stakeholders on the design and delivery of our proposed DRS and intend to continue engagement this year. An Impact Assessment will be published alongside the second consultation in 2021 which assesses the costs and benefits of a DRS, including the costs to business and the expected impact a DRS will have on kerbside recycling rates. No specific assessment has been made of the potential effect on food and drink manufacturers choosing to switch to plastic and other cheaper packaging materials as a result of the DRS. We intend to carry out a new burdens assessment to reflect the impact on local authority budgets stemming from the waste reforms policies, which will include DRS.

We recognise that the introduction of a DRS will remove in-scope materials from existing local authority waste streams as they become part of the DRS. However, we propose local authorities will be reimbursed for the costs incurred in managing any DRS materials that do still end up in these waste streams where consumers choose to forego the deposit on containers. Funding options for local authorities in this scenario are explored further in our forthcoming consultation.

The Government's commitment to introducing a DRS is part of our commitment to reform producer responsibility systems to incentivise producers to take greater responsibility for the environmental impacts of their products.

The Government is keen to avoid any unintended consequences of introducing a DRS. We have consulted widely with industry stakeholders on the design and delivery of our proposed DRS and intend to continue engagement this year. An Impact Assessment will be published alongside the second consultation in 2021 which assesses the costs and benefits of a DRS, including the costs to business and the expected impact a DRS will have on kerbside recycling rates. No specific assessment has been made of the potential effect on food and drink manufacturers choosing to switch to plastic and other cheaper packaging materials as a result of the DRS. We intend to carry out a new burdens assessment to reflect the impact on local authority budgets stemming from the waste reforms policies, which will include DRS.

We recognise that the introduction of a DRS will remove in-scope materials from existing local authority waste streams as they become part of the DRS. However, we propose local authorities will be reimbursed for the costs incurred in managing any DRS materials that do still end up in these waste streams where consumers choose to forego the deposit on containers. Funding options for local authorities in this scenario are explored further in our forthcoming consultation.

The Government's commitment to introducing a DRS is part of our commitment to reform producer responsibility systems to incentivise producers to take greater responsibility for the environmental impacts of their products.

The Government is keen to avoid any unintended consequences of introducing a DRS. We have consulted widely with industry stakeholders on the design and delivery of our proposed DRS and intend to continue engagement this year. An Impact Assessment will be published alongside the second consultation in 2021 which assesses the costs and benefits of a DRS, including the costs to business and the expected impact a DRS will have on kerbside recycling rates. No specific assessment has been made of the potential effect on food and drink manufacturers choosing to switch to plastic and other cheaper packaging materials as a result of the DRS. We intend to carry out a new burdens assessment to reflect the impact on local authority budgets stemming from the waste reforms policies, which will include DRS.

We recognise that the introduction of a DRS will remove in-scope materials from existing local authority waste streams as they become part of the DRS. However, we propose local authorities will be reimbursed for the costs incurred in managing any DRS materials that do still end up in these waste streams where consumers choose to forego the deposit on containers. Funding options for local authorities in this scenario are explored further in our forthcoming consultation.

The Environment Agency prepares data for reports by Financial Year and this response includes information between 1 April 2018 and 31 March 2020.

Cumulatively, over the last two years, 6.3% (166 of 2,639) of waste permit applications took longer than 12 months to determine.

Between 1 April 2018 and 31 March 2019, 6.5% (85 of 1,308) of waste permit applications took longer than 12 months to determine.

Between 1 April 2019 and 31 March 2020, 6.1% (81 of 1,331) of waste permit applications took longer than 12 months to determine.

Cumulatively, over the last two years the average length of time taken to determine a waste permit application is 129 days. This is broken down by reporting year as follows:

Between 1 April 2018 and 31 March 2019 it was 131 days. Between 1 April 2019 and 31 March 2020 it was 128 days.

Cumulatively, over the last two years 21.2% (560 of 2,639) of waste permit applications took longer than six months to determine. This is broken down by reporting year as follows.

Between 1 April 2018 and 31 March 2019, 21.9% (287 of 1,308) of waste permit applications took longer than six months to determine.

Between 1 April 2019 and 3 March 2020, 20.5% (273 of 1,331) of waste permit applications took longer than six months to determine.

No assessment has been made of potential delays in processing waste permit applications at the Environment Agency or the potential effect of those delays on investment in new waste processing facilities. Each application is considered on its own merit and discussed with the individual applicant, and it is important they are assessed thoroughly.

The Environment Agency prepares data for reports by Financial Year and this response includes information between 1 April 2018 and 31 March 2020.

Cumulatively, over the last two years, 6.3% (166 of 2,639) of waste permit applications took longer than 12 months to determine.

Between 1 April 2018 and 31 March 2019, 6.5% (85 of 1,308) of waste permit applications took longer than 12 months to determine.

Between 1 April 2019 and 31 March 2020, 6.1% (81 of 1,331) of waste permit applications took longer than 12 months to determine.

Cumulatively, over the last two years the average length of time taken to determine a waste permit application is 129 days. This is broken down by reporting year as follows:

Between 1 April 2018 and 31 March 2019 it was 131 days. Between 1 April 2019 and 31 March 2020 it was 128 days.

Cumulatively, over the last two years 21.2% (560 of 2,639) of waste permit applications took longer than six months to determine. This is broken down by reporting year as follows.

Between 1 April 2018 and 31 March 2019, 21.9% (287 of 1,308) of waste permit applications took longer than six months to determine.

Between 1 April 2019 and 3 March 2020, 20.5% (273 of 1,331) of waste permit applications took longer than six months to determine.

Defra does not hold this information. A list of accredited plastic reprocessors is available on the National Packaging Waste Database at the link below, but this does not provide details of the type of plastics dealt with by a site:

https://npwd.environment-agency.gov.uk/PublicRegister.aspx?ReturnUrl=%2fPackagingPublicRegisterLinks.aspx%3fReturnUrl%3d%252fdefault.aspx.

The UN Basel Convention and an Organisation for Economic Co-operation and Development (OECD) Council Decision (C(2001)107 FINAL) provide a system of international rules on waste shipments. These control regimes have been fully implemented in EU law through the EU Waste Shipment Regulations (Regulation (EC) 1013/2006). The EU’s control system for intra-EU shipments of waste is a shared regime that all EU member states must abide by. It does not draw a distinction between member states which are adherents to OECD Decision and member states which are not. Recent amendments made to the annexes of the Basel Convention will increase controls on the shipment of plastic waste. These will come into force globally on 1 January 2021.

The Secretary of State has not assessed validation systems operated by other Organisation for Economic Co-operation and Development (OECD) countries for imports of waste. Movements of waste between countries of the OECD have been supervised and controlled under an intra-OECD Control System since 1992. The OECD Council Decision C(2001)107 FINAL provides a legal framework for the control of movements of wastes within the OECD area to ensure the environmentally sound and economically efficient recovery of wastes.

Countries apply to the OECD Council to become a member of the OECD. A technical review is then carried out to evaluate the country’s policies and practices and its ability to implement OECD standards, including the Council Decision that controls intra-OECD movements of waste. This review process will normally result in a number of measures a country must implement to demonstrate alignment with OECD requirements.

The UK cannot ultimately dictate how its waste is managed once that waste leaves the UK. There is a system of international rules on shipments which must be followed. UK businesses involved in the export of wastes are required to take all necessary steps to ensure that the waste they ship is managed in an environmentally sound manner throughout its shipment and during its recycling. Any operators found to be illegally exporting waste can face severe sanctions - from financial penalties to imprisonment for a period of up to two years.

Thirty-five of the containers have already arrived in England and the remaining seven were scheduled to leave Malaysia before the end of January. The Environment Agency, as competent authority of England, is overseeing the voluntary return of all 42 containers of waste. The return of these containers is being managed and financed by the parties involved in the original export to Malaysia as it is their responsibility. The Environment Agency is closely monitoring their return to England and subsequent lawful recovery or disposal of the waste in the UK.

The Government is deeply concerned about the illegal trade in waste, including reports of illegal plastic waste exported from the UK to Malaysia. Recognising the difficulties experienced by some countries in managing imports of plastic waste, the Queen’s Speech on 19 December last year included a commitment to ban the export of polluting plastic wastes to countries that are not members of the Organisation for Economic Cooperation and Development. We will consult this year on the date by which this should be achieved.

The UK authorities did not authorise this shipment. Under the current EU legislation there is no obligation on the exporter to obtain permission for this type of waste prior to its export. As part of the Resources and Waste Strategy, the Government has committed to review the regulatory framework covering waste shipments to ensure that we improve the quality of UK waste exports.

In this case the paperwork necessary to allow the import of the 42 containers had not been put in place by the importer. UK exporters have an obligation to ensure appropriate permissions from overseas authorities have been obtained prior to export of any waste. The 42 containers of waste, which are in the process of being returned to England, were exported to Malaysia without an “Approved Permit” import licence from the Malaysian Department of National Solid Waste Management. The return of these containers is being managed and financed by the parties involved in the original export to Malaysia as it is their responsibility.

The Government is deeply concerned about the illegal trade in waste, including reports of illegal plastic waste exported from the UK to Malaysia. Recognising the difficulties experienced by some countries in managing imports of plastic waste, the Queen’s Speech on 19 December last year included a commitment to ban the export of polluting plastic wastes to countries that are not members of the Organisation for Economic Cooperation and Development. We will consult this year on the date by which this should be achieved.

Assessment of the climate change and air quality impacts arising from shipping emissions are undertaken on both a national and international basis.

Nationally the UK’s National Atmospheric Emissions Inventory incorporates an assessment of emissions from ships, including those in port. The inventory includes both particulate matter and greenhouse gases. Additionally the Department published targeted research on shipping emissions in July 2019.

Internationally the UK provides fuel sales and consumption data to both the Intergovernmental Panel on Climate Change and the International Maritime Organization, which informs international assessments of greenhouse gas emissions from shipping. The UK has also provided financial support to the IMO to progress this work.

Our vision is to have one of the best infrastructure networks in the world for electric vehicles, and we want chargepoints to be accessible, affordable and secure. The number of rapid chargepoints is increasing quickly, with 2,400 devices currently publicly available, but we recognise there is more to do. Along with the private sector the Government will invest £1 billion in charging infrastructure – making sure that everyone is within 30 miles of a rapid charging station for electric vehicles.

Our grant schemes and the £400m Charging Infrastructure Investment Fund will see thousands more electric vehicle charge-points installed across the UK. In particular, the first £70 million of the Charging Infrastructure Investment fund is expected to deliver an additional 3,000 rapid chargepoints by 2024.

In July last year, work commenced to determine a vision for a core rapid charger network on England’s strategic road network. This will report in Spring 2020. Highways England has already committed £15m to ensure there are chargepoints (rapid where possible) every 20 miles on 95% of the Strategic Road Network by the end of 2020.

Our vision is to have one of the best infrastructure networks in the world for electric vehicles, and we want chargepoints to be accessible, affordable and secure. The number of rapid chargepoints is increasing quickly, with 2,400 devices currently publicly available, but we recognise there is more to do. Along with the private sector the Government will invest £1 billion in charging infrastructure – making sure that everyone is within 30 miles of a rapid charging station for electric vehicles.

Our grant schemes and the £400m Charging Infrastructure Investment Fund will see thousands more electric vehicle charge-points installed across the UK. In particular, the first £70 million of the Charging Infrastructure Investment fund is expected to deliver an additional 3,000 rapid chargepoints by 2024.

In July last year, work commenced to determine a vision for a core rapid charger network on England’s strategic road network. This will report in Spring 2020. Highways England has already committed £15m to ensure there are chargepoints (rapid where possible) every 20 miles on 95% of the Strategic Road Network by the end of 2020.