Policy background Part 4: New Technology Renewable Liquid Heating Fuel Obligations
Heat in buildings is currently responsible for 23%9 of the UK’s greenhouse gas emissions. Decarbonising the way we heat our buildings is essential for reducing our reliance on fossil fuels and combating climate change. We expect most off-grid properties will ultimately switch to heat pumps as these are a proven technology which have been installed in high numbers in other countries. Renewable liquid fuels may play a role in decarbonising off-grid buildings that are not suitable for low temperature heat pumps.
	Renewable liquid fuels are more expensive than existing fossil fuels used in homes off the gas grid. To make these fuels available at affordable prices to customers off the gas grid, it may be necessary to impose obligations on suppliers of off gas grid heating fuels.
	The Act will give the Department for Energy Security and Net Zero’s Secretary of State the powers to establish a scheme to encourage the sale of renewable liquid heating fuels.
	The scheme enabled by these powers could play an important role in increasing the affordability and availability of these fuels for heating off gas grid homes, through setting targets for certain off gas grid heating fuel suppliers, should that be necessary to support our net zero ambitions.