Draft Clean Heat Market Mechanism Regulations 2024

On 15 January 2025, the House of Commons voted to approve the Draft Clean Heat Market Mechanism Regulations 2024, passing them by 424 votes to 109. The regulations establish a scheme requiring suppliers of gas boilers and heat pumps to sell a rising proportion of low-carbon heating systems, primarily heat pumps, alongside their conventional products, or face financial penalties if they fall short of the required quotas. The Clean Heat Market Mechanism (CHMM) is designed to accelerate the shift away from fossil-fuel heating in UK homes and buildings by creating a market obligation on heating system suppliers. Manufacturers and importers who sell more than a threshold number of gas boilers will be required to demonstrate they have also sold a corresponding number of low-carbon alternatives, with the proportion increasing year on year toward net zero targets. Companies that cannot meet the quota can purchase credits from those who exceed it. The scheme directly affects boiler manufacturers, heat pump suppliers, and ultimately householders facing choices about heating systems when boilers need replacing. The vote divided almost entirely along party lines. Labour, Labour and Co-operative, Liberal Democrat, SNP, Plaid Cymru, and Green MPs all voted in favour, while Conservatives, Reform UK, and the Democratic Unionist Party voted against. There were no notable cross-party rebels. The result reflects the broader pattern in this Parliament, in which the governing Labour majority has consistently passed climate and energy legislation over Conservative opposition, as seen in related votes on the Great British Energy Bill and renewable energy planning reforms in the preceding months.