Building regulations - proposed changes to energy and environmental standards: stage 2 consultation and BRIA

1 Introduction and how to respond to the consultation

1.1 Introduction

1.1.1. Purpose

The purpose of this review is to consider changes to The Building (Procedure) (Scotland) Regulations 2004 (as amended) and guidance supporting the standards and processes within The Building (Scotland) Regulations 2004 (as amended) and The Building (Procedure) (Scotland) Regulations 2004 (as amended) to introduce a Scottish equivalent to the Passivhaus standard. These changes are intended to further improve the energy and environmental performance of new buildings and provide greater assurance of regulatory compliance, to deliver buildings that perform as intended.

Changes will contribute to the achievement of the Scottish Government’s priority to eradicate child poverty by focussing on action that reliably delivers reduced energy demand and a healthy indoor environment. Both offering a positive contribution to broader action to address energy poverty which will be of benefit to occupants of new buildings.

Additionally, further improvements to energy efficiency will reduce delivered energy demand thereby reducing any associated upstream emissions resulting from operational energy use in new buildings.

1.1.2. Scottish Government Fuel Poverty Strategy

The Fuel Poverty (Targets, Definition and Strategy) (Scotland) Act 2019 includes statutory fuel poverty targets with the intention that no more than 5% of households will be in fuel poverty by 2040. It is important that new homes contribute to reductions in fuel poverty.

Fuel costs are the single biggest driver for fuel poverty. We want our regulations and standards to deliver homes that are warmer and cheaper to heat and which also produce zero emissions from heating. This will help to ensure that we meet both our climate change and fuel poverty targets. In some instances, households may require access to affordable warmth 24/7, emphasising the importance of achieving high energy efficiency standards for households in fuel poverty and ensuring that those most exposed to the health risks of living in a cold home are prioritised for support, with a reduction in heating demand and in turn lower household energy bills.

Further improvement to the energy efficiency of new homes and greater assurance of regulatory compliance will deliver highly efficient buildings that perform as intended, thereby contributing to the delivery of our fuel poverty targets for 2040.

1.1.3. Scotland’s Climate Change Act

The Climate Change (Scotland) Act 2009 (the 2009 Act), which originally received Royal Assent on 4 August 2009, remains the key climate legislation of the Scottish Government.

As per the 2009 Act, Ministers must ensure that Scotland’s emissions are net zero by 2045. The 2009 Act also legislates the Scottish carbon budgets for each five-year period between 2026 and 2045, setting out the trajectory to net zero.

Our target of net-zero emissions by 2045, five years ahead of the rest of the UK, is firmly based on the advice of the independent Climate Change Committee.

With the introduction of the New Build Heat Standard in April 2024 there is a shift in the way we heat our new buildings. The standard requires that heating in new buildings is not by ‘direct emission heating systems’ such as gas and oil boilers, as such, supporting our climate targets. A further step reduction in delivered energy will reduce total upstream emissions associated with the operational energy use in these new buildings.

The review also offers another opportunity to set out how action through building regulations may best support our broader net zero objectives.

1.1.4. The driver for the current review

In May 2022, Alex Rowley MSP put forward a draft proposal for a Proposed Building Environmental Standards (Scotland) Bill. A final proposal for “a Bill to introduce new minimum environmental design standards for all new-build housing to meet a Scottish equivalent to the Passivhaus standard, in order to improve energy efficiency and thermal performance” was lodged in the Scottish Parliament in November 2022, receiving cross-party support.

In December 2022, Ministers committed to give effect to the Members’ Bill to deliver ‘a Scottish equivalent to the Passivhaus standard’.

Engagement commenced in January 2023 to consider further improvements to the standards set with a focus on two outcomes:

• Improvements to the setting of energy and environmental (ventilation) performance standards for new buildings, leading to lower energy demand (and reduced running costs) and a healthy indoor environment; and
• Improvements to the design and construction process to give greater assurance that compliance, and therefore the performance sought, is delivered in practice.

Following Ministerial agreement, an industry Working Group was convened in June 2023 with a role to offer advice and expertise to the Scottish Government to help define how an equivalent to the Passivhaus standard will look in Scotland.

Themed industry workshops were held through Autumn/Winter 2023 to gather feedback on topics related to very low energy building design and construction. Working Group members and wider industry stakeholders have been actively engaged in the review process to date and, following a series of industry led engagement sessions, the Working Group released a consensus report in November 2024 detailing the Group’s recommendations on how a Scottish equivalent to the Passivhaus standard should look.

This review considers both domestic and non-domestic buildings. Any standard that is introduced will apply to every new building constructed in Scotland. It must be deliverable in practice nationally. The form that provisions will take and the level of challenge set by improvements to targets and processes should reflect this scope of application.

This review is not simply a response to Mr Rowley’s Bill proposal, but an opportunity to determine what further beneficial change can be set out for our new buildings, particularly in relation to improved evidence to demonstrate compliance with standards.

In July 2024, our stage one consultation sought views on the form and approach that a Scottish equivalent to the Passivhaus standard, implemented through building regulations, should adopt and on the proposed delivery timetable. Review of the stage one consultation informed the laying of amendment regulations on 12 December 2024, introducing a requirement for an “energy and environmental design statement” to be submitted when making a building warrant application and an “energy and environmental construction statement” to be provided when submitting a completion certificate.

The stage two consultation seeks views on proposals for performance targets, including the level of challenge that could be set within updated guidance to deliver the new standard. Proposals are made for both the main and secondary compliance metrics and the method through which targets are set. Views are sought on the proposed compliance methodologies, including the potential recognition of the Passivhaus Planning Package as an alternative methodology. Items related to indoor air quality and overheating are also presented. Views are also sought on the proposals for an enhanced compliance process, including guidance to support the new requirement to submit energy and environmental design and construction statements.

Given delays to launch this second consultation, a proposal for an updated review timeline is also presented.

Additionally, information is provided on the next steps to recognise fully certified Passivhaus buildings as an alternative means of compliance with standard 6.1 ‘Energy demand’.

1.1.5. The Scottish building standards system

The building standards system in Scotland is established by The Building (Scotland) Act 2003 (The 2003 Act). The Act gives powers to Scottish Ministers to make building regulations, procedure regulations, fees regulations and other supporting legislation as necessary, to fulfil the purposes of the Act.

The purpose of the building standards system is to protect the public interest. The system regulates building work on new and existing buildings, to provide buildings that meet reasonable standards which:

• Secure the health, safety, welfare and convenience of persons in or about buildings and of others who may be affected by buildings or matters connected with buildings;
• Further the conservation of fuel and power; and
• Further the achievement of sustainable development.

The thirty-two local authorities in Scotland are appointed by Scottish Ministers as verifiers to administer the building standards system in their geographical areas. Responsibility for compliance with the building regulations lies with the “relevant person” as the party instructing building work and, ultimately, with the building owner.

The building standards system is pre-emptive and is designed to check that design proposals meet building regulations. The main principles of the system are that a building warrant must be obtained from a verifier before work commences on site and a completion certificate is accepted by a verifier if, after undertaking reasonable inquiry, they are satisfied the building work meets the building regulations, prior to the building being occupied.

Requirements applicable to building work are set through The Building (Scotland) Regulations 2004 (as amended) as a set of mandatory functional standards. These are statements on what outcomes must be achieved when undertaking building work. These standards are supported by a body of guidance set out in Domestic and Non-domestic Technical Handbooks. This published guidance assists by defining the scope of action expected under each standard by providing one or more examples of how compliance with the standard can be achieved. However, it is quite acceptable to use alternative methods of compliance provided they fully satisfy the regulations.

The Building Standards Division (BSD) is part of the Scottish Government Building Safety and Standards Directorate (BSSD). Our purpose is to provide and maintain a robust legislative framework to ensure that the building standards system in Scotland protects the public interest. BSD prepares and updates building standards legislation and guidance documents, conducting any necessary research and consults on changes as The 2003 Act requires.

We also work in partnership with Local Authority verifiers and other stakeholders in the delivery and updating of the system and contribute to wider policy objectives of government on issues such as energy efficiency, climate change and building safety.

1.1.6. Scottish Government Heat in Buildings Strategy

We published the Heat in Buildings Strategy in October 2021, which set out our vision for decarbonising Scotland’s buildings by 2045. We remain committed to this vision and continue to lay the foundations which will support the growth of the clean heat and energy efficiency sectors in Scotland. This includes introducing the New Build Heat Standard in April 2024 and new Energy Performance Certificate (EPC) regulations which will bring an improved EPC rating system into force. We have also recently published a draft Buildings (Heating and Energy Performance) and Heat Networks (Scotland) Bill to support the decarbonisation of heat in buildings.

The Heat in Buildings: progress report 2025 shows that emissions from our buildings have continued to fall, reducing by 31% between 1990 and 2024. The number of homes with a heat pump installed is higher than ever before, and energy efficiency across all tenures has improved.

1.1.7. Energy and environmental standards within building regulations

Since the introduction of national building regulations to Scotland in 1964, there have been energy standards, in one form or another. Initially these only applied to the external fabric of certain residential buildings and were minimal in nature. Later, they evolved to take account of commercial and industrial non-domestic buildings and to address the energy efficiency of those building services essential to provide comfort to occupiers of buildings.

Prior to 2000, reviews of energy standards were less frequent, with the outcome of such reviews resulting in modest standards that kept pace with change but which could be comfortably achieved by all aspects of industry. An impact assessment carried out on subsequent changes over this era would show a cost-benefit for modest improvements which would pay back quickly through reduction in the occupier’s energy bills.

Following the introduction of The 2003 Act and our current system of building standards in May 2005, energy standards within section 6 of the Building Standards Technical Handbooks were reviewed and improved in 2007, 2010, 2015 and most recently in 2023. For new buildings, 2007 saw the introduction of a single means of demonstrating compliance on the basis of calculated carbon dioxide emission targets, using the Standard Assessment Procedure (SAP) for dwellings and the Simplified Building Energy Model (SBEM) (or equivalent) for non-domestic buildings.

It is assessed that emissions arising from energy use in new buildings constructed to the 2023 standards are, on aggregate, around 32% lower for new homes and 20% lower for new non-domestic buildings, compared to the previous 2015 standards and more than 80% lower than standards in force in 1990, the baseline reporting year for CO₂ emissions.

Key actions taken forward in the 2023 standards include:

• A focus on actions at a building level that reduce energy demand, including improved fabric insulation in new homes, to reduce space heating demand
• The introduction of a new energy target for new buildings, measuring ‘delivered energy’ (energy which is supplied to the building)
• In setting targets for new buildings, an amended approach for on-site generation of power, excluding credit for energy exported from the building
• A simplified process when connecting a new building to a heat network (standardising the building performance needed to comply).
• Changes to ventilation standards to reflect the expectation of improved levels of insulation, resulting in reduced air leakage/infiltration.

A further, specific change was introduced by the New Build Heat Standard (NBHS), which applies to new buildings and certain conversions where a building warrant application was submitted on or after 1 April 2024. The NBHS was further amended in January 2025 to permit bioenergy and peat heating and exempt secondary heating appliances from the standard.

1.1.8. Summary of Stage One Consultation

A stage one consultation on determining the form and approach that a Scottish equivalent to the Passivhaus standard should take was undertaken between July and October 2024. The consultation sought views on:

• The components of an ‘equivalent standard’
• Proposals to improve the setting of energy performance and ventilation standards for new buildings, leading to lower energy demand (and reduced running costs) and a healthy indoor environment
• Proposals to improve assurance that the design intent for energy performance and ventilation standards for new buildings is achieved in practice
• General topics material to the ongoing development of energy and environmental standards set by building regulations
• A programme to deliver the current energy standards review and the commitment on a ‘Scottish equivalent to the Passivhaus standard’
• The extent of proposed amendments to regulations

The consultation analysis report and Part 1 of the Scottish Government Response were published in December 2024.

The Part 1 response focussed on the necessary regulatory changes and confirmed that no changes were needed to current powers or technical provisions but that a means of defining a more evidenced approach to compliance with standards should be progressed via changes to The Building (Procedure) (Scotland) Regulations 2004. The amending regulations introduce a requirement for a design stage and construction stage compliance statement on specified energy and environmental standards.

Part 2 of the Scottish Government Response was published in December 2025.

The Part 2 response discussed the next steps and ongoing action to develop amended performance targets and supporting processes.

1.2 The Consultation Process

1.2.1. Scope of this consultation

This stage two consultation seeks views on proposed performance targets for the new standard, including the level of challenge that could be set within updated guidance.

Where the term ‘level of challenge’ is used in this consultation document this refers to the level of delivered energy demand performance for new dwellings and/or new buildings when compared to the 2023 energy standards.

Proposals are made for both the main and secondary compliance metrics and the method through which targets are set. Views are sought on the proposed compliance methodologies, including the potential recognition of the Passivhaus Planning Package as an alternative methodology. Items related to indoor air quality and overheating are also presented. Views are also sought on proposals for an enhanced compliance process in support of the new requirements introduced by The Building (Procedure) (Scotland) Amendment Regulations 2024.

1.2.2. Consultation documents

This consultation comprises of the following elements:

• Consultation proposals and questions (this document, published in html and pdf) with a Partial Business and Regulatory Impact Assessment (Stage 2 review) included as Annex A;
• Draft Energy and Environmental Compliance Handbook;
• Interim consultation versions of the standard 6.1 compliance methodologies for domestic and non-domestic buildings are also presented;
• The online consultation form for your response; and
• A Respondee Information Form and list of consultation questions is provided in Word format on the consultation webpage for consultees who are not able to provide a consultation response online.

Any other related draft impact assessments will be listed on the consultation webpage.

References are made within this document and the review webpage to external resources produced as part of the review process. Consultees may find these useful in setting out engagement and discussion on the review topic to date.

1.2.3. The Scottish Government consultation process

Consultation is an essential part of the policy-making process. It gives us the opportunity to consider your opinion and expertise on a proposed area of work. You can find all our consultations online at http://consult.gov.scot/. Each consultation details the issues under consideration, as well as providing a way for you to give us your views – either online or by post.

Responses will be analysed and used as part of the decision-making process, along with a range of other available information and evidence. We will publish a report of this analysis for every consultation. Depending on the nature of the consultation exercise, the responses received may:

• indicate the need for policy development or review;
• inform the development of a particular policy;
• help decisions to be made between alternative policy proposals; or
• be used to finalise legislation before it is implemented.

While details of circumstances described in a response to a consultation exercise may usefully inform the policy process, consultation exercises cannot address individual concerns and comments, which should be directed to the relevant public body.

When responding to questions which offer a choice of responses, please also provide information or evidence to explain your view on the topic wherever possible. This assists us in assessing and understanding the reason for your view and presenting the overall picture when reporting on each topic and on the overall proposal in general.

1.2.4. Handling your response

If you respond using Citizen Space, you will be directed to the ‘About You’ page before submitting your response. Please indicate how you wish your response to be handled and whether you are content for your response to be published. If you ask for your response not to be published, we will regard it as confidential and we will treat it accordingly.

All respondents should be aware that the Scottish Government is subject to the provisions of the Freedom of Information (Scotland) Act 2002 and would therefore have to consider any request made to it under that Act for information relating to responses made to this consultation exercise.

To find out how we handle your personal data, please see our privacy policy.

1.2.5. Next steps in the process

Following the consultation closing date, all responses will be analysed and considered along with any other available evidence provided. After we have checked that they contain no potentially defamatory material, responses will be published (where we have been given permission to do so) on the consultation webpage.

The Scottish Government will review consultation responses received and the issues raised during engagement with stakeholders to determine the extent of updates to proposed regulations and guidance. A consultation analysis report and Scottish Government response will then be published on the consultation webpage.

1.2.6. Comments and complaints

If you have any comments about how this consultation exercise has been conducted, please send them to:

Consultation: Proposed changes to energy and environmental standards

Scottish Government

Building Safety and Standards Directorate

Building Standards Division

Denholm House

Almondvale Business Park Livingston

EH54 6GA

Email: bsdenergystandardsreview@gov.scot