Retrofits: The role of area- based programmes in the Scottish Government’s approach to tackling climate change David Fotheringham Housing Markets and Supply

Consultation : Conserve and Save – key messages Climate Change (Scotland) Act reduce emissions by 42% by 2020 and 80% by Housing is central - 30% of emissions. Housing is more energy efficient than in the past, but a step-change is needed to meet emission targets. Start with the basics - insulating all lofts and cavities. However, virtually all dwellings will be affected, million of measures required, including low carbon equipment. Capital costs will be high, though long term savings. SG will focus support on those in fuel poverty. Positive outcomes : fuel poverty, emission reduction, economic benefits: - green jobs, lower bills.

Advice, support, incentives and standards Energy Saving Scotland Advice Centres. Community and Renewable Energy Scheme. Energy Assistance Package. New : Pathfinder domestic loan scheme. New : Energy Efficiency Design Awards. New : Council tax discount schemes. New : Best practice learning network. New : Enabling powers for regulation.

Climate Challenge Fund Zero Carbon Dunbar. Isle of Eigg Heritage Trust. Perth & Kinross Community Carbon Reduction Project. East Neuk Community Group. Lamancha & District Community Association – Wood & Wool.

Supplier obligations - CERT Carbon Emission Reduction Target : Key policy for Scotland – activity worth c. £100m per year % under-activity in Scotland ? Problems in accessing CERT in some areas. Key concern for Ministers – CERT Strategy Steering Group. Securing Our Share:CERT Strategy for Scotland EAP and Home Insulation Scheme designed to enhance delivery in Scotland. Other local schemes : LESS, Lanarkshire Community Energy Programme.

Home Insulation Scheme Street-by-street, area-based insulation scheme. Offer help with making homes energy efficient. Seek to sign people up for loft/cavity wall insulation (free or discounted) where properties can take it. 100,000 houses in 10 first phase HIS areas. £15m of Government funding, plus match funding sought from other sources. Conservative estimate of average household fuel bill savings of at least £70 per annum. Close links with Energy Assistance Package. Managing agent : Energy Saving Trust.

Home Insulation Scheme – overcoming barriers to uptake  Intensive door-to-door approach.  Advisers to liaise with landlords, owners, etc to overcome barriers.  Minimise hassle factor.  Enhanced discounts to able to pays.  Enabling fund for items such as scaffolding, loft hatches, etc  Funding to reduce costs in island areas.

Home Insulation Scheme - what is on offer All houses offered :  energy efficiency advice.  energy audits.  benefit advice, social tariff check (via Energy Assistance Package). Owner-occupied and privately rented houses suitable for measures offered :  Loft/cavity wall insulation where properties can take it.  Loft top-ups.  Interest free loans for more expensive measures. Backed up by :  Economies of scale offering competitive price for able to pay households.  Fund to reduce costs in island areas.  Fund for enabling measures – loft hatches, scaffolding, etc.

Community Energy Saving Programme (CESP)  UK Government scheme – obligation on energy suppliers and electricity generators.  GB : 90,000 houses – 3 years - £350m.  Multiple measures, whole house approach, small schemes, deprived neighbourhoods.  Example measures : solid wall insulation, heat pumps, district heating, microgeneration.  Bridge to the future.  UK Govt : 7m homes to receive a “whole house” package by 2020.

Balance between encouragement and regulation Broad enabling powers for regulation of energy efficiency standards in existing homes introduced by Climate Change (Scotland) Act.  Powers to make regulations providing for assessment of energy performance and emissions.  Powers to make regulations requiring owners to take steps to improve energy performance based on these assessments. Ministers required to report on intentions to use powers within 12 months of commencement.

Consultation : Conserve and Save – key questions  Given scale of the challenge and existing programmes what other policies should be taken forward to meet our climate change objectives for housing ?  If the Scottish Government were to prioritise the expansion of any individual existing programme, which should that be, and why ?  Views on options for regulation.