On the 29th June 2022, the independent Climate Change Committee (CCC) published its annual Progress Report to Parliament. The Committee found major failures in delivery programmes towards the achievement of the UK’s climate goals. With over 300 recommendations for the Government, the report provides a comprehensive assessment of the UK’s progress towards net zero.
Positively, the UK’s emissions are now almost half their 1990 levels and whilst emissions were 4% higher in 2021 compared to the previous year, they were still 10% below that seen in 2019. Whilst this is a good news story, the Committee highlighted that many areas of the economy are not on track to deliver the UK’s legally binding targets. More needs to be done to ensure that the energy efficiency of homes increases and low carbon heating technologies are deployed at the rate required. The Committee emphasised that the Government must lead the transition with clear policy, credible delivery mechanisms and suitable incentives.
In particular, the installation rate of heat pumps must increase ten-fold over the next six years. We are making good progress towards this with a 47% rise in heat pump installations in 2021 alone, however, this trend can only be maintained through the introduction of supportive policy including a review of levies on energy prices, the market-based mechanism for heat pumps and incentives to deliver reductions in capital and installation costs.
Commenting on the report’s release, NIBE’s Managing Director, Phil Hurley said:
“Today’s Progress Report demonstrates that energy efficiency measures, including heat pumps are significantly off track. It is clear that heat pumps must be ramped up further to meet the Government’s 600,000 annual installations of heat pumps by 2028.
“Despite the Government making positive announcements this year through the market-based mechanism and intent to rebalance energy bills, more detailed policy plans are required. It is critical that these are provided as soon as possible to provide certainty and direction to for the heating industry.”