Scottish Government to set 2045 target for decarbonising heating

The Scottish government has announced a revised Heat in Buildings Bill later in 2025, setting a legal target to decarbonise heating systems across Scotland by 2045.

The proposed legislation, announced by Acting Minister for Climate Action Alasdair Allan, will also aim to address fuel poverty while expanding clean heating infrastructure. The revised Bill responds to feedback from a recent consultation and will avoid placing immediate legal obligations on individual homeowners.

Instead, it will set system-wide targets and provide powers to support collective action. These include measures to accelerate the development of heat networks and a potential requirement for large public sector buildings to connect to district heating systems when available.

New powers will also be sought to set minimum energy efficiency standards for owner-occupied and non-domestic properties, though these will be subject to further consideration. In the meantime, existing regulations will be used to introduce standards in the private rented sector.

The Bill will remain technology-neutral to reflect the differing needs of urban, rural and island communities. It will accompany ongoing work to develop a Social Housing Net Zero Standard and reforms to Energy Performance Certificates.

Dr Allan emphasised the importance of balancing net zero goals with the cost pressures facing households and businesses, particularly in remote areas. He said the revised approach aims to avoid overly burdensome requirements on individual property owners and instead focus on government-led targets and support.

Industry has reacted to the revised Heat in Buildings Bill reflecting both support and calls for urgency.

Nicola Mahmood, head of Scotland for Aira, a Swedish clean tech company:

“The long-awaited Heat in Buildings Bill is a pivotal opportunity for the SNP government to tackle nearly a fifth of Scotland’s emissions—the direct result of burning fossil fuels to heat our homes. Since Russia’s full-scale invasion of Ukraine, Scots have endured skyrocketing gas bills, proving beyond doubt that gas is neither stable, affordable, nor sustainable for our homes or economy.

“The demand for clean, cost-effective heating is undeniable. In 2024 alone, heat pump installations surged by 20%, demonstrating that Scots are ready to embrace change. The government’s own analysis, published alongside the Heat in Buildings Bill, reinforces what we already know: heat pumps are a credible, more efficient, and cheaper-to-run alternative to gas boilers.

“We welcome the Minister’s commitment to fully decommission the gas grid by 2045—but the government must go further and faster. Expanding schemes like Home Energy Scotland is essential to reducing our reliance on imported fossil fuels and ensuring a cleaner, more resilient energy future for Scotland.”

George Webb, CEO of Liquid Gas UK:

“Liquid Gas UK welcomes the Scottish Government’s announcement of a revised Heat in Buildings Bill that will take a technology-neutral approach to decarbonising Scotland’s homes and buildings. This is a significant and positive shift that recognises what we have long advocated – that a one-size-fits-all approach to heating decarbonisation fails to address the diverse needs of Scottish households, particularly those in rural and off-grid areas.

“As an industry that’s committed to being 100% renewable by 2040, renewable liquid gases could deliver carbon emission reductions equivalent to removing 1.3 million cars from the road by 2050. We look forward to working constructively with the Scottish Government to ensure that renewable liquid gases are recognised as a valuable component of the country’s clean energy future, particularly for rural and off-grid properties.”