From macro to micro: why the decarbonisation of homes is the next net zero priority

This piece was written by Matthew Vickers, Former Group CEO of the Trust Alliance Group.

There has been a massive amount of progress on how to decarbonise our electricity system. By thinking and acting at the macro scale we’ve seen huge strides made in renewable energy. It’s not been perfect and there are still difficult challenges ahead in getting the UK’s energy assets to the size, shape and configuration we need for 2050. But a lot has been done and we can justifiably have some confidence about the direction of travel as the Climate Change Committee suggests.

But decarbonising power was lower hanging fruit to access. It could be tackled at scale and could be tackled by prodigious feats of funding and engineering. The Climate Change Committee tells us it’s going to get tougher from here.

The majority of the remaining emissions we have to cut are going to involve behaviour change. We’re going to have to actually change people’s lives by getting micro, getting nano and getting messy. Most importantly, it is crucial that we decarbonise in a way that does not increase poverty - not only for moral reasons but to ensure the journey to net zero is not derailed.

Until the end of 2023, I was the Group CEO of the Trust Alliance Group which runs the UK’s energy ombudsman. For all the innovation and investment so far, and for all the growth of renewables, the benefits for citizens and consumers can feel a very long way off. We live in a high carbon, low trust world.

National Energy Action research has found there are over 6 million people in fuel poverty today in the UK, and that poorer homes tend to be those with higher levels of carbon emissions. It predicts that there will still be 3 million by 2030 despite a statutory target to do as much as possible to eradicate fuel poverty. The poorest households spend about £417 a year more on fuel than they would do if they lived in better quality houses. The UK is renowned for having Western Europe’s most poorly insulated housing stock. As it stands, the most vulnerable communities rarely have a strong voice in net zero planning. More thought needs to go into how to protect the poorest households from the costs of transition. There are of course opportunities from heat pumps, solar panels and electric vehicles, but these are hopelessly out of reach for many. Cost, lack of the luxury of a flexible lifestyle and lack of autonomy are three of the barriers which could lead to a two tier system of the future rather than an inclusive and fair transition.

And that brings with it a difficult political and commercial challenge that will involve thinking and acting at the level of individual homes and lives. If the transition is unfair, it risks political legitimacy. If it does not tackle the barriers to participation and engagement then the commercial opportunities are throttled back. And as either or both happen, the path to net zero becomes narrower and steeper.

I’m delighted to be working with the ReGenerate team to help join up these strands and to open up more opportunities for purpose led business to change lives. We have chosen an initial focus on housing as the place where the need to decarbonise and tackle poverty coincides most clearly and urgently. If you’d like to get involved or have some ideas around who we should be speaking to and working with, get in touch.