Chancellor Philip Hammond has confirmed the government’s intention to follow advice outlined in a recent report from the Committee for Climate Change, to ban natural gas in newbuilds from 2025.
In the Spring Statement announcement today, Chancellor Philip Hammond said: “The UK is already leading the world, reducing the carbon intensity of our economy faster than any other G20 country, with ambitious and legally binding targets for the future.”
In a stated commitment to helping smaller businesses reduce their energy bills and carbon emissions, the government is launching a call for evidence on a business energy efficiency scheme to explore how it can support investment in energy efficiency measures.
The Chancellor continued: “We will publish proposals to require an increased proportion of green gas in the grid, advancing decarbonisation of our mains gas supply. And finally, we will introduce a future homes standard, mandating the end of fossil fuel heating systems in all new houses from 2025, delivering lower carbon and lower fuel bills too.”
Stewart Clements, Director at the Heating and Hotwater Industry Council, said: "By default, the announcement from government to increase the proportion of green gas in the grid signals a strong message to the industry and the consumer that, although the government have committed to ‘end fossil fuel heating systems in all new houses from 2025’, their commitment to green gas suggests they understand that the gas grid can deliver low carbon heating. So gas boilers, using biomethane or hydrogen as a fuel, should still be part of the mix for newbuild homes.”