The Heat in Buildings Bill, initially drafted by the Scottish Greens under the Bute House Agreement, aimed to phase out gas boilers in favour of greener alternatives like electric heat pumps.

During a Cost of Living Debate at the Scottish Parliament, Gillian Martin MSP, acting cabinet secretary for net zero and energy, 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”.

Ms Martin argued that the legislation, as currently designed, would place an undue financial burden on homeowners, potentially making them poorer.

The minister said she felt the drafting of the bill didn’t take that “significantly into consideration” and added there were “so many moving parts”.

Martin said: “I am going to craft a bill that is going to simultaneously reduce carbon and tackle fuel poverty.

“And until I can do that I’m afraid there will not be a bill put forward in its current drafted form because at the moment it will make people poorer.”

Scottish Green co-leader Patrick Harvie, the bill’s original architect, condemned the decision, arguing that it undermines Scotland’s climate ambitions.

“This is yet another example of the SNP’s climate delays, which have grown more and more worrying over the last year. It will also delay the huge benefit households need to see from ending their reliance on fossil fuels and their volatile prices,” Harvie said.

Industry reaction

The Scottish Federation of Housing Associations (SFHA) warned that the uncertainty surrounding Scotland’s decarbonisation plans could have serious financial implications for housing associations.

SFHA chief executive Sally Thomas stated: “The decision to scrap the Heat in Buildings Bill casts huge uncertainty on how the Scottish Government plans to decarbonise Scotland’s buildings without requiring tenants to foot the bill.

“But moreover, it is fundamentally a question about fairness: the Scottish Government is currently requiring housing associations to invest billions of pounds in clean heating systems, but is not yet requiring the same financial sacrifices, or standards, for other types of housing. 

“The Scottish Housing Regulator estimates the cost of decarbonising Scotland’s social homes alone at £9 billion- yet government has made less than 0.5% of this sum available to housing associations to achieve it. 

“So, whilst we wholeheartedly support the efforts to make homes more energy efficient and use clean sources of heat, it cannot be funded through higher rents.  

“The Scottish Government needs to set out an approach to future clean heating standards which levels the playing field across all types of homes. It is untenable to expect social housing to decarbonise alone without the funding to do so.”

Lori McELroy, chair of the Existing Homes Alliance, said: “Cabinet Secretary Martin is right to say that the Heat in Buildings Bill needs to tackle both fuel poverty and the climate emergency - this is something the Alliance said in its response to the consultation a year ago.  

“Further delay is not the answer. This move will only extend households’ exposure to volatile fossil fuel markets. The Climate Change Committee recently highlighted that failure by politicians to simulate investment through legislation that enables us to reach net zero and reduce the price of electricity by opening opportunities in private markets will see constituents worse off. 

“We need a Heat in Buildings Bill introduced this session and drafted in a way that protects the most vulnerable - that includes a firm commitment that the Bill contributes to tackling fuel poverty and a role for Scotland’s Fuel Poverty Advisory Panel in overseeing implementation of the regulations.

“We also need a support framework that ensures that everyone can access the help they need to comply, and that the costs of meeting the new standard are fully met for households in fuel poverty.

“It’s disappointing that we are now a year on from the consultation closing and we don’t appear to be any further forward on this. The longer we are left without a Bill, the more growth and job opportunities pass us by. Industry needs certainty so it can invest in the jobs needed to meet growing demand.

“It’s time for the Scottish Government to set out a clear direction of travel towards zero emissions heating by 2045. Homeowners and landlords need clarity to enable those who want to embrace the future now, to do so with confidence.”

Environmental organisations, including WWF Scotland, also voiced concern. Io Hadjicosta, the charity’s climate and energy policy manager, described the move as a step backward in addressing the climate crisis.

“Reducing emissions from Scotland’s housing stock by improving insulation and fitting renewable heat pumps would lift people out of fuel poverty, not increase it,” Hadjicosta stated. “By delaying the introduction of the Heat in Buildings Bill further, all the government is doing is condemning the poorest in our society to increasingly high fossil fuel costs and damp, unhealthy homes.”

Meanwhile, Homes for Scotland, which represents the new home building sector, welcomed the decision, arguing that increased regulatory demands would have made housing even more expensive.

“At a time of national housing emergency, we need to be encouraging the delivery of more homes of all tenures,” said director of policy Fionna Kell. “With the Heat in Buildings Bill primarily focused on the upgrading of secondhand homes, which is where most work needs to be done in terms of decarbonising homes, it is now crucial that the Scottish Government pauses and reviews proposals around the introduction of further demands on the home building sector, such as the current proposals for a Passivhaus Equivalent Standard, until long term costs to homeowners and the impact on the sector’s ability to help end Scotland’s housing emergency are known.

“We will continue to work closely with officials regarding this.”

Scottish Chambers of Commerce vice president Doug Smith also welcomed the government’s decision, stating that the bill in its original form failed to consider the complexities of the Scottish property market.

“Had it been introduced in its draft form, investors, owners, and occupiers could have had great difficulty in delivering its requirements and, in some cases, may have found it legally or physically impossible to do so,” Smith said.

He urged the government to ensure that any revised bill properly accounts for the unique needs of businesses and non-domestic properties.

Mr Smith added: “The non-domestic property or business sectors did not want delay for its own sake. There is recognition across all parts of these sectors that reducing emissions from the built environment is an objective to be supported and delivered.

“Our concerns have been raised on a number of occasions, including during the formal consultation process with Scottish Government. We hope the delay will provide the opportunity to get the structure and application of the final bill right for the domestic sector as well as for those who own or occupy non-domestic property.”

Balanced approach required

Amidst the controversy, there have been calls for a revised bill that balances environmental goals with economic realities. Claire Mack, chief executive of Scottish Renewables, emphasised the need for a strategic approach.

“The Scottish Government must swiftly outline its future action plan by working closely with the UK Government, regulators, and industry to design credible pathways for energy efficiency and the delivery of clean heat,” Mack stated. “This should prioritise cost-effective, city-wide heat networks and ensure all funding schemes are accessible to consumers and suppliers.”

Nicola Mahmood, head of Scotland for heat pump company Aira, urged the government to clarify its position on the affordability of clean heating solutions.

“If public money is used to prop up fossil fuels while clean energy alternatives struggle with policy barriers, Scotland will not only fall behind on its climate goals but also lock its citizens into higher long-term costs,” Mahmood warned. “Now is the time for decisive leadership that prioritises clean, affordable heating solutions and secures a sustainable future for all Scots.”

Craig Elliott-Frew, principal consultant in Ramboll’s Energy, Strategy and Planning team, added: “Messaging and communications are critical at this stage. It’s essential that the Scottish Government—particularly Cabinet Secretaries speaking in Parliament—avoid blanket statements suggesting that the shift to clean heating will make people poorer. This is both inaccurate and plays into the hands of those resisting change. The government must stand firmly behind the overarching direction, even if the pathway to achieving it now needs to shift.

“The Bill contained several proposals crucial to the development of the heat networks industry in Scotland. The Scottish Government must quickly clarify how it intends to support heat network zoning in a way that attracts investment and accelerates infrastructure development. Progress in England is moving at pace, and Scotland risks falling further behind—jeopardising investment, supply chain growth, and, ultimately, consumer benefits.  The heat networks opportunity can’t become collateral damage here.

“Non-regulatory measures need immediate attention. The government has previously outlined non-regulatory steps, such as reforming its system of grants and loans—including a shift towards installer-led funding and incentive schemes. However, these mechanisms have remained unchanged for years, and with the regulatory framework now abandoned, it is critical for the government to provide an urgent update on these plans to support delivery and strengthen the supply chain. If we don’t pivot towards new ways of delivering funding and support to sustain market interest, we risk a real collapse of the clean heating industry and supply chain, at a time when it needs to grow.”