It’s been a busy week in net zero and energy certification, with four key announcements on carbon budgets, heat networks regulation, reform of the Energy Performance of Buildings (EPB) regime, and the launch of a new net zero buildings standard.
To help organisations stay informed our Head of Consultancy, Timothy Holman highlights the key takeaways from each update.
Government Responds on Reform of the Energy Performance of Buildings Regime
The UK government has published a partial response to its consultation on the Energy Performance of Buildings (EPB) reform in England and Wales. The response focuses on proposals for what Energy Performance Certificates (EPCs) will measure and when they will be required, with further responses on other elements, including Display Energy Certificates and data quality, expected later in 2026. The reforms are also expected to strengthen the quality and usefulness of air conditioning inspections, which may influence how organisations plan and schedule their TM44 air conditioning inspections.
The reforms are intended to make EPCs more informative and better aligned with net zero objectives, including by introducing new headline metrics for domestic buildings. Subject to parliamentary approval, the government intends to bring forward regulations in 2026 to implement these changes ahead of the introduction of new‑style domestic EPCs.
For commercial properties, the Government will retain the single carbon‑based Environmental Impact Rating (EIR) as the headline metric for the commercial EPC, recognising its established role in emissions reporting and regulatory compliance.
For organisations that own, manage or occupy property portfolios, these reforms signal a continued regulatory focus on commercial EPCs and wider building energy performance, with implications for compliance planning, asset management and investment decisions.
Read about the EPB Reform in our Market Briefing: Government’s Latest Response to the Reforms to the Energy Performance of Buildings (EPB) Regime
Seventh Carbon Budget Sets Direction for the Late 2030s
The Climate Change Committee’s Seventh Carbon Budget marks a critical milestone on the UK’s statutory pathway to net zero. Covering the period 2038–2042, the budget will set legally binding limits on greenhouse gas emissions and reinforce the expectation that emissions will be significantly lower by the end of the 2030s than today.
While the budget applies at a national level, its implications for organisations are clear. Delivery will increasingly depend on widespread electrification, continued decarbonisation of the power system, and sustained reductions in energy demand across buildings, transport and industry. Businesses and public sector bodies can expect greater scrutiny of long‑term carbon reduction strategies and where investment decisions made today will affect emissions performance in future decades.
Discover what the Seventh Carbon Budget could mean for organisations in our Market Briefing: Seventh Carbon Budget: Implications for UK Organisations
Ofgem Publishes Guidance on Regular Reporting for Heat Networks
Ofgem has published its final guidance on regular data reporting for heat networks, following consultation with industry and stakeholders. The guidance sets out what data heat network operators and suppliers must report, who is required to report, and the timing of submissions.
The reporting framework forms part of the wider regulatory regime introduced under the Energy Act 2023, which brings heat networks under formal economic regulation for the first time. Ofgem has stated that the data will be used to monitor performance and support consumer protection, with updates made to the final guidance to clarify data definitions and approaches to backdated reporting following stakeholder feedback.
Organisations involved in the ownership, operation or supply of heat networks, including local authorities, housing providers and energy service companies, will need to ensure appropriate systems and governance are in place to meet these new reporting obligations.
Read in more detail what the guidance from Ofgem covers in our Market Briefing: Ofgem Publishes Guidance on Regular Data Reporting for Heat Networks
CIBSE Publishes UK Net Zero Carbon Buildings Standard Version 1
CIBSE and partner organisations have published Version 1 of the UK Net Zero Carbon Buildings Standard, providing the UK built environment with its first unified, science‑based definition of what it means for a building to be net zero carbon aligned.
The voluntary standard applies to new and existing buildings and is designed to address long‑standing inconsistencies in how “net zero” claims are defined and verified. Version 1 incorporates learning from extensive industry piloting and places a strong emphasis on actual, in‑use performance rather than design intent alone.
While not a regulatory requirement, the standard is expected to play an increasingly influential role in shaping best practice, informing procurement decisions, and supporting credible net zero strategies across the built environment.
For organisations seeking guidance, working with an experienced Net Zero Consultant can help navigate the Standard’s requirements.
Read more about the latest publication in our Market Briefing: CIBSE Publishes UK Net Zero Carbon Buildings Standard Version 1
Heading in the Right Direction
Taken together, these four developments point to a clear direction of travel: greater regulatory oversight, more robust performance data, and rising expectations around the credibility of net zero claims. For UK organisations, this reinforces the need for cohesive energy, carbon and estates strategies that anticipate regulatory change rather than react to it.
As policy, regulation and industry standards continue to evolve, organisations that invest early in robust data, governance and long‑term carbon reduction planning will be better positioned to manage risk, demonstrate compliance and support the UK’s transition to net zero.