Industry calls on FM to introduce Heat in Buildings Bill ‘before it’s too late’

The Existing Homes Alliance has gathered signatures from 25 organisations calling on the First Minister to fulfil his promise to introduce a Heat in Buildings Bill before the window for legislation closes imminently due to the election.
Initially drafted by the Scottish Greens under the Bute House Agreement, the Heat in Buildings Bill is a key element of a strategy to decarbonise buildings and contribute towards Scotland’s net zero targets.
Earlier this month, acting cabinet secretary for net zero and energy Gillian Martin announced she will only publish the legislation when she “can be satisfied that the interventions in it will decrease fuel poverty at the same time as they decarbonise houses”.
According to the 25 organisations, the Heat in Buildings Bill will give confidence to the industry and kickstart investment in jobs and skills, providing exciting opportunities for young people and investing in communities across Scotland.
The Heat in Buildings consultation closed a year ago, and the delay in introducing these standards has already deterred supply chains from scaling up to meet growing demand, the letter to First Minister John Swinney explains.
The signatories warn that the “cost of delay is lost job opportunities and another winter of cold homes and fuel poverty”.
The letter reads…
Dear First Minister,
When you became Scotland’s First Minister in May 2024 you were clear that your focus would be on eradicating child poverty, driving economic growth and tackling the climate emergency.
In your first Programme for Government you committed to bringing forward a Heat in Buildings Bill “providing certainty to building owners and the supply chain”.
This clarity of focus and the understanding of the role of industry in delivering on your priorities was welcome.
Improving the energy efficiency of Scotland’s homes and switching from fossil fuel heating is a fundamental part of tackling climate change and fuel poverty.
Scotland’s businesses will be central to this, and to make it happen, we need certainty. The signatories to this letter represent the manufacturers, contractors, installers and advisors who will deliver the transition to zero emissions homes.
Our fear is that further delay in the introduction of this Heat in Buildings Bill will mean it may not be passed ahead of the 2026 election, resulting in damaging impacts on your Programme for Government priorities, as well as on our businesses. We are therefore writing to highlight the need for urgency in this matter.
Homes right across Scotland (urban and rural, old and new) need to be upgraded with improved energy efficiency and clean heating. Building fabric improvements will cut energy demand and help tackle fuel poverty, benefitting households and businesses and reducing pressure on the grid. Heat pumps will be a great heating solution for many homes and district heat networks have the ability to deliver decarbonised heat to homes and businesses at scale.
Working together, these measures give consumers the best outcome by simultaneously cutting energy bills, heating demand, and emissions.
There is no doubt that this will be challenging but upgrading our homes is a necessary step that, if done well, will bring opportunities for existing and new businesses to create jobs and training opportunities in all parts of the country.
It will eliminate poor energy efficiency as a driver of fuel poverty and has the potential to reduce household (and indeed many small business) energy bills.
We have strong foundations on which to build in Scotland, with numerous businesses manufacturing key equipment like heat pumps, heat storage and insulation, and many who are working hard to upgrade homes or build heat networks. We will, however, need a step-change in the capacity and capability of supply chains if we are to meet the scale of demand.
To meet the challenge and maximise opportunities, industry needs certainty. The introduction of a Heat in Buildings Bill, including standards for zero emissions heating and energy efficiency in homes will provide much-needed clarity for homeowners, landlords and supply chains.
Additional mechanisms to support certainty of demand for heat networks, including capturing waste heat, and local authority powers to require buildings in zones to connect to heat networks, are also a much-needed part of the Bill.
It is now a year since the Heat in Buildings consultation closed, and the delay in introducing these standards and requirements has already deterred suppliers, contractors and installers from scaling up to meet growing demand. The cost of delay is lost job opportunities and another winter of cold homes and fuel poverty.
We are calling for the Scottish Government to deliver on its promise and introduce this Bill to Parliament as a matter of urgency.
If the Bill is not introduced before the summer recess, there is a risk that it will not have sufficient time to be considered by the Scottish Parliament before the next Holyrood elections. This will mean continued uncertainty and more missed opportunities.
Standards should be phased in over time to allow industry to scale up, and should be accompanied by expanded advice and financial support– available to business and homeowners.
To make the transition fair and affordable, we are also calling on the UK Government to advance electricity price reform, making clean heat the most cost-effective solution.
Businesses across the country are ready and willing to help meet the climate challenge, creating thousands of green jobs and upgrading homes so they are warm and affordable to heat. But certainty is needed to allow us to plan how we can scale up to meet growing demand and to give us the confidence to invest in training and jobs across the country.
Yours sincerely,
