Consultation outcome

Market-based mechanism for low carbon heat

From:: Department for Business, Energy & Industrial Strategy
Published: 19 October 2021
Last updated: 10 January 2023 — See all updates

Read the full outcome

A market-based mechanism for low-carbon heat - summary of responses received and government response

PDF, 417 KB, 47 pages

Detail of outcome

This government response sets out a summary of the responses received to the consultation and related government decisions.

The consultation set out the government’s proposals to support an industry-led transformation of the heating appliance market towards low-carbon products.

Having considered the responses, the government intends to proceed with developing plans to introduce a market-based mechanism for low-carbon heat and bringing forward legislation in the forthcoming Energy Security Bill.

The response also sets out, including in relation to:

parties in scope of the scheme
low-carbon heating technologies
the focus of scheme targets

Detail of feedback received

We received 67 responses, from a range of organisations, including:

representative and trade bodies
industry professionals
academics
members of the public

Original consultation

Consultation description

This consultation seeks views on proposals to introduce a market-based mechanism to support the development of the UK market for low-carbon electric heat pumps.

This mechanism will create a market incentive to grow the numbers of heat pumps installed in existing premises each year, providing industry with a clear, long-term policy framework for investment and innovation.

In this consultation, we are seeking views on a range of design features of the proposed mechanism, including:

the proposed scope of technologies and installations
the choice of core target for the mechanism
options for trading within the mechanism
options for scheme administration, penalties and enforcement

We have also published a consultation-stage impact assessment.

This consultation was launched alongside the Heat and buildings strategy.

See the BEIS consultation privacy notice.

Please do not send responses by post to the department at the moment as we may not be able to access them.

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