Chamber and committees

The technical handbooks highlight that fixed emergency heating might be appropriate when portable solutions are not viable because of the size, complexity or heat demands of a particular building. However, the new-build heat standard is technology neutral; not only does it make a distinction between direct and zero-direct emissions heating, but it does not distinguish by fuel source.

As for situations in which peat is used for cooking, I clarify that cooking is outside the scope of the new-build heat standard, which means that fuel-burning appliances can be installed if their only purpose is cooking.

The emergency act has provided tenants with extra protection and stability at a time when rents have been rising across the United Kingdom but, as Parliament agreed, it must come to an end on 31 March. All rent increase notices that are issued until 1 April must still comply with the cap, as well as giving three months’ notice. We know that, although many landlords will continue to act responsibly from then on, there could—without action—have been cases of tenants facing sudden, extreme rent increases. I am therefore pleased that Parliament recently approved regulations to temporarily modify the rent adjudication process by which tenants can ask for a review of rent increases. That will protect tenants by preventing a cliff edge as we transition out of the emergency legislation, while continuing support for responsible landlords.

As I said in my answer to the previous question, the Cost of Living (Tenant Protection) (Scotland) Act 2022 has provided tenants with much-needed stability in tenancies at a time when rents have been rising across the United Kingdom. In 2023-24, we invested more than £83 million in discretionary housing payments, which are a vital tool to reduce poverty, safeguard tenancies and prevent homelessness.

I am delighted that the new housing legislation that was set out in the programme for government has now been introduced. The Housing (Scotland) Bill will enable the delivery of our commitment to longer-term proposals for private rented sector rent controls, the strengthening of tenants’ rights and other protections, and duties that are aimed at preventing homelessness.

The member is right to say that the private rented sector has always been dynamic, with some landlords leaving and others entering. That is further demonstrated by the evidenced growth over the past 18 months in the number of registered properties that are available for private rent.

I acknowledge that there are limitations to the data. For example, there could be a time lag in landlords deregistering properties. However, it is in the interests of tenants and responsible landlords to have a fair and well-regulated private rented sector, which can also be attractive to investors. Our proposals will help to improve affordability for tenants in the private rented sector while recognising the importance of landlords investing in the quality of their property.

I join the member in congratulating all those who have campaigned for progress in this area for a long time, as I have. I first proposed rent controls in the Parliament well over a decade ago, and I got very little support at that time from any part of the political spectrum. I am glad that the case has much more support today.

The member will be aware that the temporary emergency legislation that the Parliament passed had a time limit. If it had not had that time limit and had not been temporary emergency legislation, it would have failed the legal test of proportionality and necessity, which we have to meet. That legislation was challenged in court, and the reason why we won that challenge was largely that we met the proportionality and necessity test because of the emergency legislation’s temporary nature.

The adjudication provisions that we have drafted are by necessity more complicated than a rent cap, but we have put a great deal of effort into raising awareness of tenants’ rights and making sure that they are able to exercise the rights and protections that are available to them.

I think that most members—perhaps all—began by thanking Audrey Nicoll for bringing the debate to the chamber. We begin most members’ business debates in that way, but, today, that was more than just the usual courtesy, because this topic is critically important to the future of Scotland’s economy, and I think that the majority of members who have spoken in the debate clearly get that and see the positive opportunity for the future.

I am particularly grateful to Audrey Nicoll for securing the debate, and to those other members who have engaged constructively and positively in it. As well as Audrey Nicoll, other members—Sarah Boyack, Kenny Gibson and Mark Ruskell—put the issue into the context of the long-running positive story that Scotland has to tell about the transition not just away from fossil fuels but, assertively and positively, towards a renewable future. As Sarah Boyack reminded us, the scepticism that abounded when initial renewable energy targets were set has been proved to be unjustified. Most of Scotland’s political spectrum has been committed to the long-term, clear signal from the Government that we are serious about the transition to renewables and getting an economic benefit from that.That long-term certainty is why we have been successful, so I hope that Scotland’s political spectrum—or at least most of it—remains fully committed to that positive future for Scotland.

I welcome the findings of the Fraser of Allander Institute report, which shows the thriving renewable energy sector that other members have described. There was more than £10 billion of output in 2021, supporting more than 42,000 jobs. That report and today’s debate are helpful in reminding us of the beneficial impact to Scotland that the transition to net zero is having. It is not only reducing emissions but tangibly benefiting our economy and our communities as we ensure that Scotland seizes the benefits.

On offshore wind, we can see a rapidly developing sector that is already helping to deliver on our ambition to provide a new, stronger and more productive Scottish economy, with a world-class renewables workforce in more than 15,000 jobs. The latest report from the Offshore Wind Industry Council predicts that the number of jobs in the sector across the UK could grow to more than 100,000 by 2030. ScotWind reflects significant market ambition for offshore wind in Scottish waters. It has delivered more than £750 million in revenue to the public purse in initial option fees and the Scottish Government welcomes the commitment of developers to invest an average projection of £1.5 billion per project across the 20 ScotWind offshore wind projects. I hope that we can all agree that offshore wind represents a significant opportunity for jobs, and for Scotland more generally.

Scotland continues also to lead the way with our deployment of onshore wind, which still has significant potential for growth. The Fraser of Allander report estimates that the sector already supports more than 12,000 jobs. Onshore wind is one of the lowest-cost ways of producing electricity, so we are keen to continue working closely with the sector, through the onshore wind sector deal, to realise our ambition of increasing capacity to 20GW by 2030. That will help to create further opportunities and positive impacts across our economy while delivering long-term value for consumers.

In the marine space, Scotland is in a prime position for the development and deployment of tidal stream and wave energy. Scotland is home to almost all of the approximately 10MW of operational tidal stream energy capacity in the UK and more than half the total capacity installed globally. The sector will continue to grow, with projects in Scotland receiving around 30MW of the total 53MW of tidal stream capacity supported in the fifth allocation round of the UK Government’s contract for difference.

The development of the renewable energy sector will also bring wider benefits as a result of investment in supply chains. The announcement of the £24.5 million Sumitomo grant award that has been mentioned already will help to support the first cable factory in Europe, with the potential for hundreds of high-quality green jobs in the Highlands. That will be hugely important as an addition to our supply chains for offshore renewable energy generation and distribution, and it will help to support our move towards net zero. That is an example of the wider economic opportunities that the renewable energy sector can stimulate and is already stimulating, and it is a real demonstration of the public sector working together with industry for the benefit of Scotland’s economy and environment.

Yes, indeed. As I think that Sarah Boyack knows, we still have grant funding available for the installation of solar. We direct that to support the installation of clean heating, as well, because that is the way to get the maximum decarbonisation benefit. However, as we work on completing the just transition and energy strategy, we will continue to develop work that was announced a few months ago on the development of a solar ambition for Scotland.

I want to mention something about clean heat and energy efficiency, because those are vital to our transition, to meeting our targets and to getting public benefit through community-scale, decentralised ownership and the involvement of the public sector.

This morning, I spoke at the start of the Scottish Enterprise clean heat event in Glasgow, which brought together Scottish companies, investors, consumers and innovators in the sector to make connections and highlight the huge opportunity that has been presented to companies in our supply chain through the transition. That event highlighted the strong foundations that Scotland already has, with people and businesses already engaged in that transition. I am encouraged by the discussions and the connections that are being made in order to enable people to collaborate as we develop our policy and regulation proposals for heat in buildings.

As we move towards net zero and delivering those high-skilled jobs, we are also committed to maximising community benefit from, and ownership of, energy projects. We are encouraging developers to offer community benefits and shared-ownership opportunities to communities as standard on all new renewable energy projects.

Over the years ahead, we must continue to push forward to deliver an energy system that supports net zero by 2045. That will require collaboration with the UK Government. We have consistently urged the UK Government to provide an appropriate market mechanism for hydropower, for example, to ensure that its potential is fully realised and to unlock the substantial private investment that is needed to develop further pumped hydro storage. As we transition to net zero, we also need new flexibility and market arrangements that will support a range of other storage technologies, including at commercial, community and domestic scale. That is critical to ensuring that we maintain security of supply, as well as making the most of our electricity network.

We should all be excited about the potential for our communities, our economy and Scotland more generally as we transition to net zero. The report on which Audrey Nicoll has secured this debate demonstrates the scale of the benefit that we have achieved already and that is yet to be delivered. The Government is determined to continue to support that as it is delivered in the years and decades ahead.

Yes. The supply chain development programme continues its work to align economy and innovation policy interventions with public sector spend, including by using more strategically important approaches to improve the capacity and capability of Scottish manufacturing supply chains.

Prioritising the opportunities in low-carbon heating in housing means that we are working to make sure that procurement opportunities are made visible in the Scottish supply chain—including to manufacturers. A huge amount of innovation is happening in Scotland to develop the products, processes and services that will enable us to meet the challenge domestically and that will offer export opportunities.

Mark Ruskell is absolutely right to point that out. The clean heat market mechanism was brought forward by the UK Government and we supported it. We said that it would help to achieve not only the UK Government’s targets but ours, with the potential to shape the growing market for clean heating systems. The mechanism uses powers that are reserved to the UK Government and that we cannot use.

The delay—after months of speculation and lobbying by vested interests that wanted to kill that scheme off—is hugely disappointing. It will discourage existing boiler manufacturers from increasing their investment and their ability to supply clean heating systems. I therefore encourage the Prime Minister to drop his culture war on climate, which he launched last autumn, and give the long-term certainty that the industry needs.

We are, indeed, very clear about where we are starting from. The Government is under no illusion that Scotland and the UK would not be in a far better position not only to decarbonise our heating but to ensure that people have affordable heating if, throughout Scotland and the UK, decisions had been made decades earlier—most progressive European countries made such decisions—in responding, for example, to the energy crisis of the 1970s. Scotland should have been building highly energy-efficient homes and the ability to decarbonise for decades. The long-standing mistakes of successive UK Governments are the reason why we now have an incredible challenge.

However, this Government is giving the long-term certainty that will enable investment in the industry. That is a far cry from what the UK Government is doing in watering down, diluting and delaying action on heat in buildings. Just this month, it delayed the clean heat market mechanism for an entire year, sending exactly the wrong signals to industry about the need to scale up, skill up and invest.