Wera Hobhouse

Hydrogen will be key in reaching net zero, helping decarbonise industrial processes and heavy transport where it’s harder or more expensive to electrify, complementing wider electrification efforts. Hydrogen to power was identified in our December Clean Power Action plan as a key technology providing low carbon dispatchable generation at a range of scales, benefiting from the UK’s abundance of offshore wind and supporting a decarbonised power system.

We have a comprehensive framework of investible business models to support infrastructure deployment, supporting projects that create real jobs and growth. An update on our hydrogen strategy will be provided later this year.

Hydrogen will be key in reaching net zero, helping decarbonise industrial processes and heavy transport where it’s harder or more expensive to electrify, complementing wider electrification efforts. Hydrogen to power was identified in our December Clean Power Action plan as a key technology providing low carbon dispatchable generation at a range of scales, benefiting from the UK’s abundance of offshore wind and supporting a decarbonised power system.

We have a comprehensive framework of investible business models to support infrastructure deployment, supporting projects that create real jobs and growth. An update on our hydrogen strategy will be provided later this year.

Bristol City Council’s consortium was awarded £13,458,463 under Warm Homes: Local Grant (WH:LG), which is ~£2m more than the £11,393,650 awarded under Home Upgrade Grant 2 (HUG2).

Whilst HUG2 was allocated £700m in 2021 by the previous government compared to WH:LG’s £500m in autumn 2024, this does not represent a resource reallocation under the Warm Homes Plan as these schemes are not comparable.

The UK and Brazil recently co-chaired the first Climate and Clean Air Coalition (CCAC) Board meeting of 2025. Taking ambitious action on methane remains a key focus for the CCAC and the UK and Brazil are working closely together on this shared objective, including ahead of COP30.

Tackling methane emissions is a priority for the department including as part of the Global Methane Pledge's target (to collectively reduce global methane emissions by 30% by 2030), and under the Climate Change Act. Resource is spread across a number of domestic and international teams in accordance with the priority areas and sectors set out in the Carbon Budget Delivery Plan and Global Methane Pledge.

Biomethane can play an important role in reducing reliance on imported gas, increasing our country’s energy security, and helping to deliver net zero.

The UK Emissions Trading Scheme (ETS) applies a zero emissions factor to biomethane combustion where it is supplied directly to ETS installations. Where biomethane is injected into the gas grid, there is not currently a mechanism to account for the use of biomethane.

The Department is considering stakeholder feedback from the 2024 Call for Evidence on the impacts of this to inform the next steps. The Department will provide an update in due course.

The Government is aware that the expiration of Renewables Obligation accreditation may affect the commercial viability of generators from a range of technologies, including anaerobic digestion plants and other small scale generators.

We are continuing to assess the situation to understand the impact of the end of Renewables Obligation support on security of supply, clean power 2030 and the environment.

The Industrial Strategy will channel support to eight growth-driving sectors, including the Clean Energy sector, and will be published in Spring 2025. These are sectors in which the UK excels today and will propel us tomorrow.

Regarding marine energy, existing policy levers such as the Contracts for Difference scheme and innovation funding delivered by UK Research & Innovation offer substantial levers to unlock marine energy deployment and support supply chain development.

Tidal stream and wave technology projects are eligible to apply for a suite of innovation funding programmes delivered by the UK Research and Innovation (UKRI).

Through UKRI, several such projects have won support through programmes administered by Research and Innovation organisations, including Innovate UK and the Offshore Renewable Energy Catapult.

Detailed information on amounts of funding awarded to research and innovation projects is publicly available and can be found on the UKRI website:

https://www.ukri.org/what-we-do/what-we-have-funded/

Details of ministers’ meetings with external individuals and organisations are published quarterly in arrears on gov.uk.

We understand the importance of bringing people along with us on the journey to decarbonise buildings across the UK. We will continue to be in contact with a range of stakeholders as we develop our Warm Homes Plan.

According to Heat Pump Association estimates, we currently need to train at least 6,600 installers a year. Around 9,000 individuals completed training in 2024, so we are well in line with current workforce training needs.

The £5 million Heat Training Grant is supporting the upskilling of existing heating engineers in England. The scheme launched in July 2023 and is on track to support 6,000 heat pump training opportunities by April 2025.

The Low Carbon Heating Technician apprenticeship launched in Autumn 2023. This is helping bring new entrants into the sector and build a sustainable skills pipeline.

The Government is aware that the expiration of Renewables Obligation accreditation may affect the commercial viability of generators from a range of technologies, including anaerobic digestion plants.

We are continuing to assess the situation to understand the impact of the end of Renewables Obligation support on security of supply, clean power 2030 and the environment.

Anaerobic digestion plants do have alternative sources of support available such as the Green Gas Support Scheme that provides support for biomethane grid injection.

The Government is aware that the expiration of Renewables Obligation accreditation may affect the commercial viability of generators from a range of technologies, including anaerobic digestion plants and small scale biomass generators.

We are continuing to assess the situation to understand the impact of the end of Renewables Obligation support on security of supply, clean power 2030 and the environment.

Anaerobic digestion plants do have alternative sources of support available such as the Green Gas Support Scheme that provides support for biomethane grid injection.

Aircraft operators that use eligible sustainable aviation fuel (SAF) can currently claim a reduction in their UK Emissions Trading Scheme (ETS) obligations. In June 2023, the UK ETS Authority committed to review its approach to SAF within the UK ETS, acknowledging the significance of the SAF Mandate to the decarbonisation of the aviation sector. The UK ETS Authority will consult on a range of options, including SAF Mandate alignment in due course.

Aircraft operators that use eligible sustainable aviation fuel (SAF) can currently claim a reduction in their UK Emissions Trading Scheme (ETS) obligations. In June 2023, the UK ETS Authority committed to review its approach to SAF, acknowledging the significance of the SAF Mandate to the decarbonisation of the aviation sector. The Authority will consult on a range of options in due course.

Third-party intermediaries (TPIs) like price comparison websites, energy brokers, and auto-switching services are vital in helping consumers navigate the retail energy market, acting as intermediaries between energy suppliers and customers. However, not all TPIs offer optimal services. While most operate ethically and responsibly, there are exceptions. Several consumer harms have been reported, such as TPIs prioritising their own commercial interests over consumers', opaque contracting practices (including verbal contracts in the non-domestic market), instances of mis-selling, inadequate dispute resolution, and poor customer service.

The Government consultation on regulating TPIs in the retail energy market closed on 15 November. A government response will follow in due course once we have reviewed the feedback received.

Third-party intermediaries (TPIs) like price comparison websites, energy brokers, and auto-switching services are vital in helping consumers navigate the retail energy market, acting as intermediaries between energy suppliers and customers. However, not all TPIs offer optimal services. While most operate ethically and responsibly, there are exceptions. Several consumer harms have been reported, such as TPIs prioritising their own commercial interests over consumers', opaque contracting practices (including verbal contracts in the non-domestic market), instances of mis-selling, inadequate dispute resolution, and poor customer service.

The Government consultation on regulating TPIs in the retail energy market closed on 15 November. A government response will follow in due course once we have reviewed the feedback received.

We have created several business models to fund CCUS projects, designed to ensure value for money whilst providing long term sight of revenue streams for investors. CCUS will be funded by a mixture of exchequer and levy sources, the exact split to be determined in due course. Negotiations with projects are ongoing and therefore commercially confidential. Final awards will be published on the UK subsidy database. We will continue to learn from the first clusters as they approach Final Investment Decisions and apply these lessons to further development of CCUS to ensure that it delivers value for money.

On 21 November the Government announced £30 million of additional budget for the Boiler Upgrade Scheme for this financial year in response to increased uptake to the scheme. It was also confirmed that the scheme budget for the next financial year will be almost doubled to £295 million. Budgets for subsequent years will be confirmed in the second phase of the Spending Review.

The Government has also announced support for social housing and lower income households through the Warm Homes: Social Housing Fund and Warm Homes: Local Grant which includes support for low carbon heating.

Solar projects over 5MW were eligible to apply for Allocation Round 6. The Government is committed to accelerating solar deployment to meet clean power 2030 and reviews the Contracts for Difference scheme before every round to ensure it continues to deliver this and other objectives. We will confirm details for Allocation Round 7, including eligibility, in due course.

Solar projects over 5MW were eligible to apply for Allocation Round 6. The Government is committed to accelerating solar deployment to meet clean power 2030 and reviews the Contracts for Difference scheme before every round to ensure it continues to deliver this and other objectives. We will confirm details for Allocation Round 7, including eligibility, in due course.

The Department has around 4500 full time equivalents (FTE) working across multiple policy areas and programmes. These include demand flexibility, Great British Energy, Carbon capture, utilisation and storage, hydrogen, nuclear, the review of electricity market arrangements, heat electrification and biomass, amongst others. The Department’s resourcing is recorded and aligned to its organisation structure, rather than to portfolios. This means we are unable to provide a detailed breakdown for each of the areas mentioned.

The details of contracts agreed by Sizewell C with its suppliers are commercially sensitive. The project has made a commitment to spend 70 per cent of the construction value in the UK.

Following the announcement in October 2024 of funding for the initial Track 1 cluster configurations, further funding decisions for continued CCUS deployment will be taken as part of the Spending Review concluding in late Spring 2025.

An assessment is made on the potential implications of any policy by the civil service and is provided to ministers to allow an informed decision to be made. The 2006 Intergovernmental Panel on Climate Change’s (IPCC) Guidelines for National Greenhouse Gas Inventories provide a methodology for the reporting of emissions from bioenergy with carbon capture and storage that the UK is intending to follow once the technology is operating at sufficient scale.

The Department is unable to share information potentially sensitive to individuals working within GBN. GBN has grown rapidly as an organisation with permanent recruitment underway.

Large or listed UK companies are required to disclose specified emissions under the regulations which underpin Streamlined Energy and Carbon Reporting. Currently, Government is considering the International Sustainability Standards Board reporting requirements which do not prohibit the use of book and claim for emissions, subject to transparent reporting and verification. DESNZ is also reviewing the Environmental Reporting Guidance which includes guidance on reporting renewable energy where Renewable Energy Guarantees of Origin are used alongside physical purchase of energy, as well as use of carbon offsets. However, there are no plans to conduct a specific assessment of the merits of book and claim at the present time.

The 2023 Biomass Strategy contained a commitment to consult on developing and implementing a cross-sector sustainability framework to enable greater consistency across sectors. Next steps on this will be announced in due course.

The Government recognises that heat pumps may not be feasible in a small number of properties, and these homes will require alternative low-carbon heating solutions to help them decarbonise.

The Government is committed to incentivising properties to transition to cleaner, affordable heating and our Warm Homes Plan will offer grants and low interest loans to support investment in insulation, low carbon heating and other home improvements to cut bills.

Sizewell C’s spending plans are agreed by shareholders, including Government. The public disclosure of detailed spending plans whilst the project is engaged in live commercial negotiations could have a negative impact on the project’s negotiating position and undermine the project’s value for money.

Sizewell C Ltd publishes an annual report and accounts, which are available to view at Companies House. This sets out expenditure and income for each financial year.

The Department also includes information about amounts invested into the project via its annual report and accounts, which are published and laid before Parliament.

GBN has grown rapidly as an organisation to deliver on its mission and now has over 100 personnel working for it, including 51 staff seconded from 16 organisations. GBN has permanent recruitment underway, and all roles are advertised, with applications welcomed from candidates from all backgrounds and organisations.

Government is aware that support under the Renewables Obligation Scheme, including some that landfill gas generators hold, concludes from 2027 onwards. We are speaking with a variety of generators to understand the impact that the conclusion of support will have on their future operations. This will inform considerations about whether further support is required.

The UK has committed to the World Bank’s ‘Zero Routine Flaring by 2030’ Initiative, and has additionally committed to end routine venting by 2030. In the North Sea Transition Deal the UK industry committed to accelerate compliance ahead of 2030.

With support from Government, industry is on track to meet these ambitious targets.

According to the North Sea Transition Authority, flaring reduced by 49% between 2018 and 2023, and methane emissions fell by more than 50% in the same period.

Specific details of the project’s spending plans are commercially sensitive – and budget allocations for different elements of work are set by the company, Sizewell C Limited. As majority shareholders in the project, government has previously committed to invest £2.5 billion in the project’s development and recently strengthened this with a further subsidy scheme of up to £5.5 billion to provide certainty and ensure the project has access to the necessary financial support to remain on schedule.

The transition to a smarter energy system can bring benefits for many consumers. This was a key factor in a call for evidence carried out earlier this year on the future of default tariffs in a more flexible market https://www.gov.uk/government/calls-for-evidence/default-energy-tariffs-for-households-call-for-evidence

DESNZ and Ofgem will continue to work closely to ensure that consumers can benefit from a more flexible energy system whilst being protected from unfair or inefficient pricing.

NESO's role is set out in legislation and licences and is regulated by Ofgem. It has a statutory duty to have regard to the Strategy and Policy Statement, which was issued earlier this year and sets out the government’s intention for NESO to consider ‘opportunities to shift and manage demand through smart solutions, such as electricity or hydrogen storage, demand side response and low carbon generation.’

Demand side flexibility has a key role to play in delivering clean power by 2030 and making Britain a clean energy superpower. Such opportunities will include the potential to further integrate demand side response through changes to the design and operation of the markets that NESO operates.