Policy background Part 4: New Technology Low-Carbon heat schemes
As set out in the 2021 Heat and Buildings Strategy , 6 meeting the UK’s net zero target requires decarbonising the large majority of heat in buildings. For most buildings, this requires a transition from being heated by appliances which burn fossil fuels to the use of low-carbon technologies. Since nearly half of UK annual natural gas consumption is used for heating buildings, accelerating this transition will also reduce dependency on global fossil fuel markets.
	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 and installation of low-carbon heating appliances, such as electric heat pumps.
	The low-carbon heat scheme envisaged by these powers will play an important role in growing the supply chain for such technologies, through setting targets for certain companies. This will help, for instance, to strengthen the incentives to invest in bringing these technologies to market and promoting and expanding their uptake by consumers.