Scottish Energy Strategy and Just Transition Plan Update
Last week the Minister for Energy and Environment updated parliament on the next steps to deliver Scotland’s Energy Strategy and Just Transition Plan.
The Minister for Energy and Environment, Gillian Martin, has provided an update on the Scottish Government’s vision for our future net zero energy system
Last week the Minister for Energy and Environment updated parliament on the next steps to deliver Scotland’s Energy Strategy and Just Transition Plan (ESJTP), coinciding with the publication of responses to the ESJTP consultation held earlier this year.
In her statement, the Minister highlighted that Scottish Government is providing funding of £1.8 billion to accelerate heat decarbonisation, with at least £465 million to support those least able to pay. These two key themes – funding and support for low income and vulnerable groups – were raised by a significant number of consultation respondents and echo the points made in our own submission calling for further support to ensure a just transition for social housing tenants.
On heat in buildings, respondents called for increased financial support and incentives for the installation of energy efficiency measures and deployment of low-carbon heating. This aligns with the calls made by SFHA to introduce a longer-term and more coordinated approach to funding social housing retrofit programmes.
Fuel poverty and support for vulnerable groups were also recurring themes, with concerns raised that some households may be disproportionately impacted by proposals. Suggestions for how to protect those at risk of fuel poverty and/or living in remote and rural areas included: the need for robust data collection and analysis to underpin targeted support; active engagement to raise awareness of the benefits of energy efficiency improvements; financial measures to address upfront costs acting as a barrier to deployment; and responses to the cost-of-living crisis such as price caps and other interventions on electricity unit prices.
Other notable points raised by respondents were the need for greater coordination between policy makers, and a stable and supportive policy environment to help drive investment. Concerns were also raised about the cost and efficiency of hydrogen, with many suggesting that its use should be limited to transportation.
Since SFHA submitted its response, Scottish Government has extended the “Fabric First” component of the Social Housing Net Zero Heat Fund (SHNZHF) to 2026 and introduced much-needed rural and remote location uplifts. The Social Housing Fuel Support Fund will additionally provide vital support to those experiencing fuel poverty over the coming winter. These are welcome steps, but further action is still needed to support the sector over the longer term and provide further clarity on what a ‘just transition’ means for our members and their tenants.
The final Energy Strategy and Just Transition Plan is due to be published by summer 2024. In the interim, SFHA will continue to engage with Scottish Government, with our upcoming Finance (14-15 November) and Energy and Net Zero conferences (28 November) providing additional opportunities to provide feedback alongside our regular forum discussions.