Department for Energy Security & Net Zero

The Government works closely with a range of stakeholders including academia and independent experts to assist policy development around sustainability of biomass, ensuring that evidence informs long-term decision making. This has included commissioning several independent studies exploring the sustainability of biomass.

It has also included working with Ofgem and independent experts, alongside research gathered from engagement with industry and academia, to support development of strengthened assurance around the compliance of generators with sustainability criteria.

The Government is clear that nuclear power is and will continue to be an essential part of our journey to net zero by 2050, in combination with other low carbon and renewable technologies. Great British Nuclear is pushing forward with its SMR competition for UK deployment with final decisions to be taken this spring. The economic case for SMRs would be factored into any investment decision into the technology.

The Prior Information Notice was published to support policy exploration under the previous Government and has since closed with 10 responses. The names of the organisations which responded is commercially sensitive. No decision has yet been taken on whether to pursue a future large-scale project.

The Department’s UK TIMES model captures interactions across the entire energy system, from fuel extraction to final energy demands, enabling comprehensive analysis of decarbonisation pathways and helping us explore the optimal future energy system. This model has been instrumental in developing departmental net zero strategy, including our understanding of the future power sector. Building on this, DESNZ recently invested in BID3, a new model designed to simulate a fully connected power and hydrogen market across the UK and EU. BID3 will model power generation, hydrogen production, transmission, gas transport, interconnectors, and storage, allowing comparison of whole-life system costs and cashflow, across future scenarios.

The Department for Energy Security and Net Zero (DESNZ) publishes UK territorial greenhouse gas emissions statistics. They can be found here: https://www.gov.uk/government/statistics/final-uk-greenhouse-gas-emissions-statistics-1990-to-2023

DESNZ also publishes carbon dioxide (CO2) emissions from the combustion of fossil fuels reported by industrial sites, including those covered by the UK Emissions Trading Scheme (ETS). CO2 emissions from fossil fuel combustion at the Drax site can be found here: https://naei.energysecurity.gov.uk/data/maps/emissions-point-sources, https://reports.view-emissions-trading-registry.service.gov.uk/ets-reports.html

UK reporting is consistent with international guidelines established by the Intergovernmental Panel on Climate Change (IPCC), which require CO2 emissions from the combustion of biomass to be accounted for in the land use, land use change and forestry (LULUCF) sector of the country in which the biomass was harvested, rather than at the point of release to the atmosphere.

The Department for Energy Security and Net Zero (DESNZ) publishes UK territorial greenhouse gas emissions statistics. They can be found here: https://www.gov.uk/government/statistics/final-uk-greenhouse-gas-emissions-statistics-1990-to-2023

DESNZ also publishes carbon dioxide (CO2) emissions from the combustion of fossil fuels reported by industrial sites, including those covered by the UK Emissions Trading Scheme (ETS). CO2 emissions from fossil fuel combustion at the Drax site can be found here: https://naei.energysecurity.gov.uk/data/maps/emissions-point-sources, https://reports.view-emissions-trading-registry.service.gov.uk/ets-reports.html

UK reporting is consistent with international guidelines established by the Intergovernmental Panel on Climate Change (IPCC), which require CO2 emissions from the combustion of biomass to be accounted for in the land use, land use change and forestry (LULUCF) sector of the country in which the biomass was harvested, rather than at the point of release to the atmosphere.

The Government is committed to enabling the development of hydrogen storage infrastructure to meet the needs of the emerging hydrogen economy. This includes supporting the development of storage infrastructure that can operate over a range of durations and serve multiple end-users.

The Government intends to design the first Hydrogen Storage Business Model (HSBM) procurement to contribute towards an ambition to support up to two storage projects at scale to be in operation or construction by 2030.

We are continuing to develop our approach to the development of hydrogen storage infrastructure through strategic planning and the HSBM as a priority.

Dispersed locations form a major part of UK industry’s pathway to Net Zero, accounting for approximately half of emissions. The £6 million Local Industrial Decarbonisation Plans competition is funding 13 decarbonisation projects in local clusters, including in areas with hard-to-electrify industrial processes, supporting dispersed industrial manufacturers not located in the UK’s existing industrial clusters to start their journey towards Net Zero.

Government is also providing decarbonisation support to dispersed sites through the Industrial Energy Transformation Fund (IETF). In the 2024 Autumn Budget, the Government committed £163 million to continue delivery for all current projects of the IETF through to completion.

The National Energy System Operator (NESO) is an independent public body. We do not hold information on the strategic capability review. I have asked NESO to write to the noble Lord and a copy of the letter will be placed in the Libraries of the House.

The Government adopts a target-consistent approach to valuing greenhouse gas (GHG) emissions, which is based on estimates of the abatement costs needed to meet specific emissions reduction targets. The value placed on changes in GHG emissions has been reviewed and updated as of October 2021. The carbon values are used to quantify and value the emissions for appraisal purposes.

Specifics are detailed within supplementary guidance to HMT’s Green Book found on the gov.uk website: https://www.gov.uk/government/publications/valuation-of-energy-use-and-greenhouse-gas-emissions-for-appraisal#:~:text=This%20guidance%20provides%20government%20analysts,methodology%20for%20UK%20policy%20appraisal

Home upgrades – including insulation – are one of the best tools to get bills down for good and we are committed to promoting properly installed loft, wall and roof insulation.

The Government is currently updating the Energy Efficient Home website as part of work to refresh our public campaigns. Additional pages will go live in the coming weeks, including a page on the benefits of cavity wall, roof and loft insulation, and one on wider energy saving tips.

The Government’s ‘Find Ways to Save Energy in your Home’ service (www.gov.uk/improve-energy-efficiency) provides tailored recommendations to increase household energy efficiency, including advice on insulation.

Energy bills remain high for too many households. The government’s clean energy mission is the only route to protecting billpayers from the rollercoaster of fossil fuel markets in the long-term, which is why we are sprinting to clean, homegrown energy through the Clean Power Action Plan.

We have also taken urgent action to improve energy efficiency in British homes and protect households’ energy bills. On 21 November 2024, we announced how our Warm Homes Plan will support households to take up measures that can help save money on their bills and deliver cleaner heating, with up to 300,000 homes to benefit from upgrades in the next financial year. We also announced proposals on 7 February 2025 for private landlords to meet higher energy performance standards in their properties by 2030, which could save private renters £240 per year off their energy bills. These policies have been communicated across media and digital channels, including ministerial media interviews, GOV.UK publications, graphics and videos on social media. They have been further amplified through work with our partners to reach wider audiences who follow their channels.

This is alongside our support for the ‘Speak, Seek, Save’ campaign run by Citizens Advice, providing advice to consumers on how to save energy and reduce their bills, which includes publishing and amplifying content on social media.

The Government is working closely with the Low Carbon Contracts Company and Ofgem to finalise the remit for the independent advisor on biomass sustainability and will set out a timescale for the appointment in due course.

Government is fully committed to protecting nature. That’s why as part of the SSEP we are requiring NESO to give due consideration to environmental impacts and statutory environmental duties throughout all stages of its production. This will include environmental data sets, a robust governance framework and stakeholder engagement. The SSEP will also be subject to a Strategic Environmental Assessment (SEA) and plan-level Habitats Regulation Assessment (HRA).

In August, Ofgem concluded its investigation into Drax’s annual profiling reporting requirements relating to the Renewables Obligation. The investigation identified shortcomings in Drax’s governance and controls related to annual profiling data but found no evidence to suggest that Drax had been issued with subsidies incorrectly.

Following a detailed consultation Government recently announced a Heads of Terms agreement with Drax for support during the period 2027 to 2031 after their existing support ends. This provides best value for consumers compared to alternatives, halves the cost of subsidy and strengthens sustainability requirements.

Full details of the new deal are available here: https://questions-statements.parliament.uk/written-statements/detail/2025-02-10/hcws424

Government is committed to ensuring that communities who live near clean energy infrastructure can see the benefits. This includes publishing guidance on community funds this quarter, which will set out government’s expectations for communities living near to electricity transmission network infrastructure.

The guidance aims to balance the need for consistency without being overly prescriptive and unintentionally omitting projects or infrastructure where communities should be entitled to benefits.

We aim to publish this guidance in due course.

As the first step towards the Warm Homes Plan, the Government has committed an initial £3.4 billion over the next 3 years towards heat decarbonisation and household energy efficiency, with £1 billion of this allocated to 2025/2026.

Further details on the Warm Homes Plan will be set out in due course. Future funding towards decarbonisation and to tackle fuel poverty will be considered as part of Phase 2 of the Spending Review, which will conclude in late Spring 2025.

The Boiler Upgrade Scheme does not currently support hybrid heat pumps, as we want to direct the available funding towards the technologies that offer the greatest carbon savings, rather than those which would continue to involve the burning of fossil fuels for heating and hot water.

The Government is committed to incentivising moves to cleaner, more affordable heating, and will keep its position on alternative heating technologies (including multi-technology solutions) under review and make further assessments as the supporting evidence base develops.

The Committee for Climate Change has recommended the government grows the heat network sector from providing 3% of national heat demand to 20% by 2050. We are implementing heat network zoning and funding low carbon heat networks to get to this scale.

Heat networks can use a variety of heat sources such as heat from industry and natural heat sources such as rivers. Where industrial or natural heat sources are not available heat networks can use large air-source heat pumps. When deployed in the right locations will be lower cost for consumers than other low-carbon individual heating systems.

The Committee for Climate Change has recommended the government grows the heat network sector from providing 3% of national heat demand to 20% by 2050. We are implementing heat network zoning and funding low carbon heat networks to get to this scale.

Heat networks can use a variety of heat sources such as heat from industry and natural heat sources such as rivers. Where industrial or natural heat sources are not available heat networks can use large air-source heat pumps. When deployed in the right locations will be lower cost for consumers than other low-carbon individual heating systems.

The Boiler Upgrade Scheme does not currently support air-to-air heat pumps, as heat pump installations must provide both space heating and hot water heating, using liquid as a medium for delivering that heat. In most cases, air-to-air systems only provide space heating, with many installations still reliant on burning fossil fuels for hot water. We want to target support at technologies that offer the greatest potential to decarbonise our buildings.

However, the Government will keep its position on alternative electric heating technologies under review, and would consult industry and key stakeholders on any potential changes to the scheme before making any decisions.

The Government expects to write shortly, to all local authorities that submitted an Expression of Interest to receive Warm Homes: Local Grant funding to confirm their specific funding allocations.

The Government does not hold details on the specific products used, however a breakdown of measures installed under the various government grant schemes in recent years can be found in their respective evaluation reports and official statistics on gov.uk.

All measures fitted under government schemes must be fitted to the highest standards with issues promptly and properly rectified.

The government recognises that the system of quality assurance and consumer redress that we inherited needs reform and we will set out plans for root and branch reform as part of the Warm Homes Plan.

Regulations for products and appliances are covered by the Ecodesign for Energy-Related Products Regulations 2010 and are routinely reviewed by government. There is no work planned to amend the relevant regulation for commercial refrigeration at the present time.

Our ambitious Warm Homes Plan will support investment in households, including rural homes, to install energy efficiency measures and low carbon heating to save families money on their bills.

The Government has committed £3.4 billion over the next 3 years towards heat decarbonisation and household energy efficiency. This includes the new Warm Homes: Local Grant (WH:LG), which will provide support for low-income households living in privately owned EPC band D-G homes both on and off the gas grid in England. The WH:LG will be delivered from 2025 to 2028 by eligible local authorities.

Under the terms of the Trade and Cooperation Agreement (TCA), the UK Government and EU agreed to give serious consideration to linking our respective carbon pricing schemes and to cooperate on carbon pricing. As part of our reset with the EU the Government continues to explore all options to improve trade and investment.

The Government will work to reset the relationship with our European partners to strengthen ties that improve our trade and investment relationship with the EU and promote climate, energy, and economic security, while recognising that there will be no return to the single market or customs union.

The UK’s Climate Change Committee (CCC) has no statutory responsibilities in relation to the NDC. However, to benefit from its independent expertise, the Secretary of State wrote to the CCC to request guidance on the UK’s 2035 nationally determined contribution (NDC). The CCC's guidance was published in October 2024 and included the recommendation that the UK’s NDC commit to a reduction in territorial greenhouse emissions of 81% from 1990 to 2035. The CCC advised that this target would be consistent with the emissions reductions required to meet the UK’s legally binding Sixth Carbon Budget (2033-2037). This guidance did not include any advice on making the 2035 NDC binding in law.

On 14th November 2024, the Government published a consultation to assess the value case for a UK Green Taxonomy, which closed on 6 of February 2025. The Government is reviewing responses and will provide a Government Response on next steps in due course.

The UK shares the EU’s concerns about the risk of carbon leakage and recognises the EU’s right to take action to address it. The Government plans to apply the UK Carbon Border Adjustment Mechanism (CBAM) across the whole UK, including in NI. The UK will continue to work with international partners, including the EU, to ensure our approach is implemented in a way that works for businesses.

The EU CBAM could only apply in Northern Ireland with the agreement of the UK and in line with the democratic safeguards of the Windsor Framework.

For goods moving from Northern Ireland into the EU, guidance is a matter for the European Commission and EU Member States. The UK have raised with the EU Commission the need for clarity on the practical implementation of the EU CBAM for trade in electricity, given the challenges involved.

The EU Commission website is the most up to date source of information and guidance.

The UK Atomic Energy Authority (UKAEA) participates in the Robotics and Artificial Intelligence Collaboration (RAICo) to accelerate deployment of robotics and AI in fusion engineering and nuclear decommissioning. Furthermore, to support the use of AI in fusion research, the first of the UK’s AI Growth Zones is proposed to be located at the headquarters of the UKAEA in Culham, Oxfordshire. AI will be critical in further developing fusion technology by processing complex calculations that will accelerate the R&D that is needed to make fusion a reality.

The Government has published a refreshed planning framework for new nuclear reactors (EN-7), including small and advanced modular reactors, for consultation. The new planning framework proposes to empower nuclear developers to identify potentially suitable sites in real-time against a robust set of siting criteria.

Plans for Government policies on nuclear power were taken into account when making the decision on plutonium disposition. All current reactor projects use uranium oxide fuel. In addition, the Nuclear Decommissioning Authority (NDA) conducted substantial technical, deliverability and economic analysis to identify a preferred option for a long-term disposition solution for the UK-owned plutonium, considering options for immobilisation and reuse of the material as fuel. Immobilisation is the solution that will place the material beyond reach soonest and with greatest delivery confidence. This is a key step towards dealing with our nuclear legacy and not passing the burden on to future generations.

Ministers regularly engage with a variety of stakeholders.

The initial version of the Energy Skills Passport was launched on 22^nd January 2025 with DESNZ having come onboard as a project partner to accelerate delivery in October 2024. The passport is a tool which can be accessed by workers across the country, but the initial version focuses on oil and gas workers looking to transition into certain roles in offshore wind.

As with all policies, DESNZ will be assessing the impact of the project and will use these findings to inform how the project evolves going forward.

The initial version of the Energy Skills Passport was launched on 22^nd January 2025. As with all policies, DESNZ will be assessing the impact of the project and will use these findings to inform how the project evolves going forward.

The procurement of nuclear fuel, including uranium and enrichment services, is a commercial matter for reactors operators. The Government works closely with these operators to ensure there is a secure and resilient supply for the UK fleet. Uranium enrichment facilities in the UK operate as service providers, enriching uranium that is provided to them by customers. The stockpiles of Uranium held by these companies are a commercial matter and therefore disclosure of these amounts would be at the discretion of these entities.

There are no plans to increase the quantity of plutonium in the UK. The domestic inventory of plutonium has arisen from historic reprocessing of spent fuel from the UK and overseas energy utilities under commercial agreements. Reprocessing stopped in the UK in 2022.

This government is committed to ensuring that everyone has the opportunity to contribute to the transition to net zero, supporting people and communities to take action and realise the benefits.

For large-scale renewable electricity developments, we encourage developers to engage with local communities at the earliest opportunity. We will integrate best practice principles of engagement into planning guidance, so that when developers consult with the local community on a proposed project, they do so in a considered, inclusive and responsive manner. We also use the Public Attitudes Tracker to poll the public on their views regarding renewable technologies on a quarterly basis.

We will publish a Net Zero Public Participation Strategy in 2025, which will set out how we will support people to adopt new technologies, as well as opportunities to ensure that public views are considered in policy development.

Government can’t achieve this alone. People also look to businesses, charities, scientists and local communities for advice and support. We have an opportunity to work in partnership to provide information, help people access grants and wider support and ensure that benefits of the net zero transition can be realised by all.

The origin and profile of biomass used by Drax is monitored by Ofgem. The Government requires that all biomass used by Drax be compliant with strict sustainability criteria. This requires that biomass must be legally and sustainably harvested and includes requirements around protecting biodiversity and maintaining forest productivity.

We have strengthened sustainability requirements in our recently announced deal with Drax. In the agreed low carbon dispatchable Contract for Difference, we will explicitly exclude material sourced from primary forests and old growth forests from receiving support payments. There will be substantial penalties on Drax if sustainability criteria are not met.

The department regularly engages with the public on nuclear energy policy matters.

In August, in light of the Supreme Court Finch Judgment, the government accepted that the previous Environmental Impact Assessment decisions were unlawful. That decision was made following the taking of legal advice, the contents of which are privileged.

In any event, all parties to Rosebank and Jackdaw claims, including the operators themselves, agreed that the previous decisions were unlawful. The Court has now confirmed this, and made provision for fresh decisions to be made in due course.

Public funding provided by DESNZ is laid out in DESNZ annual reports and accounts.

In August, in light of the Supreme Court Finch Judgment, the government accepted that the previous Environmental Impact Assessment decisions were unlawful. That decision was made following the taking of legal advice, the contents of which are privileged.

In any event, all parties to Rosebank and Jackdaw claims, including the operators themselves, agreed that the previous decisions were unlawful. The Court has now confirmed this, and made provision for fresh decisions to be made in due course.

In December 2024 the Government carried out a Strategic Review of the UK’s National Nuclear Laboratory (UKNNL) https://www.gov.uk/government/publications/national-nuclear-laboratory-strategic-review .

The review concluded UKNNL is deeply valued by the sector, with its scientific capability being repeatedly praised as world leading, but there is a requirement for core government funding to ensure UKNNL retains and develops its critical capabilities, and continues specialist research and development. The optimal long-term model, that ensures UKNNL can deliver outcomes for Government and support sector growth, remains under consideration. The Government is currently working through a spending review and decisions will be made in due course.

The review sets out UKNNL’s important role supporting Government as its trusted technical advisor, and it is crucial the laboratory engages internationally to further its research and development. Government is taking forward the review’s recommendation for a more proactive and strategic approach to UKNNL sponsorship, this will include assessing the scope of UKNNL’s role in international relationships.

As sustainable biomass is a limited resource, the Government expects to prioritise its use in sectors like aviation which have fewest options to decarbonise. Renewable liquid heating fuels (RLHF) are also much more expensive to use than other heating solutions

However, the Government recognise that RLHFs could play a limited role in decarbonising heat off the gas grid.