United Kingdom Future Ban on Gas Boilers
The UK announced in April 2021 new climate change commitments that aim to set the country on course to cut carbon emissions by 78% by 2035 to become net zero by 2050 (net zero target was announced in 2019). In October 2021, the UK Government reinforced this message by publishing their Net Zero Strategy: Build Back Greener.
Also in October 2021, the UK Government published its Heat and Buildings Strategy, which sets out a plan to significantly cut carbon emissions from the UK’s 30 million homes and workplaces. The UK residential properties are predominantly centrally heated (over 95%) and rely on gas or oil-fired boilers. The ambition is to phase out the installation of natural gas boilers by 2035. This resulted in wide ranging support and grants for alternative technologies.
The alternatives to central gas boilers are district heating systems and electric heating including heat pumps and storage heaters. Heat pumps will play a pivotal role. The Heat and Buildings Strategy commits $600 million in the boiler upgrade scheme to support households who want to make the switch to low-carbon heat pumps with $6,700 grants (available from spring 2022). In addition, the UK Government is planning to launch the Heat Pump Ready Program in the coming months to accelerate the commercialization of innovative clean energy technologies and processes in the UK.
Apart from heat pumps, technologies improving efficiency for both new and existing buildings will be highly sought after. The UK is a mature market with established supply chains, and therefore suitable for companies with innovative products and technologies that compete well in sophisticated international markets.
The Commercial Service in the UK is working relentlessly to support U.S. companies that can deliver solutions under the climate agenda. For further information, market intelligence and to learn of direct opportunities for your business contact Kristina.Schaferova@trade.gov.