Decarbonise our homes to make them warmer and cheaper to heat
Decarbonising our homes is crucial for meeting climate targets, alleviating fuel poverty, and improving health. Heat in buildings is Scotland’s second largest source of emissions, accounting for around 20% of our annual carbon emissions. Around 90% of homes still use oil and gas for heating, and 50% of homes are below the recommended levels of energy efficiency. Furthermore, fuel poverty has reached unprecedented levels with 1 in 3 households in Scotland struggling to afford to heat their homes as a result of poor insulation and soaring fossil fuel prices.
Increasingly extreme weather is also bringing challenges, with many homes lacking resilience to higher temperatures and increased rainfall. Building standards must be improved to reflect the reality of current and future climate impacts, with a user-friendly metric developed to measure overheating risk in homes and buildings.
Installing clean heating systems powered by Scotland’s abundant homegrown renewables in combination with better insulation in our homes and workplaces would have a transformational impact on people’s lives in Scotland through:
• Delivering affordable warmth for households – a reduction of around 15% in annual energy bills (£365 at current energy prices) and carbon emissions (around one tonne) per home that meets the minimum energy efficiency standard roughly equivalent with an EPC ‘C’ rating1
• Creating new jobs – the Existing Homes Alliance estimates between 16,200-21,600 jobs could be sustained in insulating homes and changing heating systems
• Improving our health – healthier and warmer home environments through clean heating and energy efficiency measures can reduce health-related public spending and deliver improved public health outcomes. It is estimated that it costs NHS Scotland between £48m and £80m per year to treat health conditions caused as a result of living in cold homes2
• Determining whether Scotland remains on track with its legally-binding 2045 net zero ambition – a reduction of around 90% in annual carbon emissions per home that switches from a gas boiler to an air-source heat pump
• Benefiting the economy – an increase in GDP by over £3 for every £1 invested in energy efficiency, and improving energy efficiency in properties and installing low-carbon technologies can increase property value. Based on home value modelling, an air source heat pump alone could increase the sales value of a home by around £5,000 – £8,000
Changeworks (2025) Heat in Buildings Bill: Costs and Benefits. Available upon request.
Consumer Focus Scotland (2014) Economic Impact of Improving the energy efficiency of fuel poor households in Scotland. Available upon request.