Written questions by Heylings.

What assessment he has made of the potential merits of offering loans or a cashback scheme to SMEs to implement energy efficiency measures; and if he will make an assessment of the potential impact of this on levels of (a) emissions, and (b) SME energy costs.

Several pilots are running to better understand how we can support SMEs to reduce energy demand, bills and carbon. The Pilot Business Energy Advise Service, providing energy audits and grants in the West Midlands, could have annual saving of £24m in bills and 51,000 tonnes of carbon based on all recommendations being implemented. The ZCS Hospitality Trial, will support c600 hospitality SMEs through online carbon and energy reduction tools, with potential to save over £3m in bills and 2,700 tonnes of carbon annually. The British Business Bank’s pilot Green Growth Guarantee Scheme will facilitate up to £30m of investment in green tech for SMEs and help understand SME appetite for green finance.

Whether he has made an assessment of the potential merits of modifying future Contracts for Difference rounds to reward system value, benefits, and services, in addition to procuring energy at the lower possible cost per unit.

We keep the Contracts for Difference scheme under review and consult on potential reforms ahead of each allocation round. We have also introduced the Clean Industry Bonus which allows for other factors such as supply chain investments to be taken into account as part of the process.

What assessment he has made of the potential merits of promoting and planning the co-location of load-following small modular reactors with stable demand sources, such as data centres or electric arc furnaces, to reduce grid congestion and maximise the flexibility and surplus capacity delivered to the grid.

The Government is aware of the growing interest in private offtake agreements, particularly from energy-intensive sectors, and will explore options brought forward by privately led projects that supporting such arrangements as part of the Advanced Nuclear Framework.

What comparative assessment he has made of the international competitiveness of (a) the UK and (b) countries that deploy carbon capture at scale in low-carbon cement production.

Carbon capture, usage and storage is integral to decarbonising the cement sector’s production of clinker and making the sector competitive in a net zero economy. Government has signed the UK’s first industrial carbon capture contracts with Heidelberg Materials UK’s Padeswood cement works, showing our commitment in this regard. In addition, the National Wealth Fund has made a £28.6 million equity investment in Peak Cluster. Furthermore, DESNZ in partnership with Innovate UK is supporting the Advance Market Commitment (AMC) for next-generation low-carbon concrete. This initiative aims to accelerate the scale up and adoption of low carbon concrete solutions through creating a guaranteed market for these products. Industry supporters who have made commitments include Scottish Water, Ramboll, Derwent London, Atkins Realis UK, and Heathrow.

Pursuant to the Answer of 10 February 2026 to Question 110137 on Renewable Energy, whether his Department plans to set a minimum gigawatt target for (a) local energy and (b) community energy within the 15GW target.

As set out in its Strategic Plan in December 2025, Great British Energy (GBE) has a 15GW clean energy target over the next 5 years. This will allow GBE to unlock the potential of emerging technologies while supporting the continued build out of more established technologies, like solar, wind and hydro. GBE has committed to support at least 1000 local and community energy projects by 2030. These projects will form an integral part of that overall ambition to deliver at least 15GW. By focussing on projects rather than on GW, GBE will prioritise smaller projects across the country and the communities that benefit from them.

What discussions he has had with the Department for Work and Pensions about the adequacy of levels of support available to clean energy SMEs, to ensure they are able to take on apprentices.

This Government is transforming the apprenticeships levy into a new growth and skills levy, backed by £725 million additional investment, which will deliver greater flexibility to employers and learners in England and support the industrial strategy. To support SMEs in all sectors to take on apprentices, the government will fully fund apprenticeship training for non-levy paying employers (essentially SMEs) for all eligible people aged under 25 from the next academic year. This change will make it easier for those employers to engage with apprenticeships by cutting costs and reducing bureaucracy for both them and their training providers. As set out in the Clean Energy Jobs Plan, DESNZ works closely with the Department for Work and Pensions and Skills England to ensure the skills system, including apprenticeships, delivers the workforce needed for our clean energy mission.

What discussions he has had with the Department for Work and Pensions about support for apprentices to transition into the clean energy sector.

This Government is transforming the apprenticeships levy into a new growth and skills levy, backed by £725 million additional investment, which will deliver greater flexibility to employers and learners in England and support the industrial strategy. To support SMEs in all sectors to take on apprentices, the government will fully fund apprenticeship training for non-levy paying employers (essentially SMEs) for all eligible people aged under 25 from the next academic year. This change will make it easier for those employers to engage with apprenticeships by cutting costs and reducing bureaucracy for both them and their training providers. As set out in the Clean Energy Jobs Plan, DESNZ works closely with the Department for Work and Pensions and Skills England to ensure the skills system, including apprenticeships, delivers the workforce needed for our clean energy mission.

What assessment he has made of the potential impact of recommendations 11 and 12 of the Nuclear Regulatory Review on the level playing field provisions in the EU-UK Trade and Cooperation Agreement.

We will present a full government response and implementation plan by end of February 2026, taking account of our national security considerations, and planning, environmental and court processes. The Review acknowledges that when reviewing the recommendations in detail and in considering implementation, we may conclude that some recommended outcomes could be better achieved by alternative means, or that delivery timescales must necessarily be adjusted.

What steps he is taking to ensure (a) the UK is establishing a resilient clean energy supply chain and (b) strengthen cooperation with European partners.

Our Clean Energy Industries Sector Plan set out HMG’s approach to creating investment, growth and jobs in clean energy industries, including supply chains. In addition, Great British Energy has launched its £1bn supply chain programme, Energy Engineered in the UK, to boost clean energy industries. We’ve empowered the National Wealth Fund with £5.8bn for carbon capture, low carbon hydrogen, gigafactories, ports, and green steel. The British Business Bank £4bn scale up fund will deploy capital to target both the scale-up gap for climate tech and the expansion of new specialist investors. UK Export Finance will deploy £13bn of direct lending to stimulate overseas demand in the industrial strategy priority sectors. The UK continues to work closely with European partners to strengthen security of supply and accelerate the deployment of clean energy. We are deepening both bilateral and multilateral cooperation, including through established UK-EU structures and agreements, cooperation in the North Seas, and through our broader network of energy partnerships across Europe.

What assessment he has made of the potential merits of setting minimum gigawatt targets for (i) local energy and (ii) community energy projects.

This Government is hugely ambitious about the role that local and community energy will play in achieving our mission to make Britain a clean energy superpower. On 10 February 2026, Great British Energy and the Department for Energy Security & Net Zero published the Local Power Plan which sets out the UK’s largest ever public investment in community energy. Backed by up to £1 billion, the Local Power Plan aims to support more than 1,000 local and community energy projects by 2030. As set out in its Strategic Plan in December 2025, Great British Energy has an aim to deliver 15GW in clean energy generation and storage capacity over the next 5 years.

Pursuant to the Answer of 12 December 2025 to Question 96957, when his Department plans to roll out the Connections Accelerator Service.

The Connections Accelerator Service became operational in December 2025, entering its pilot phase and meeting the commitment set out in the Industrial Strategy. The Department is now scaling up the service throughout 2026.

What discussions he has had with his US counterpart on the potential impact of the United States leaving the Paris Climate Agreement on the global, collective effort to lower fossil fuel emissions and tackle climate change.

Decisions on participation in the Paris Agreement are for individual countries to make. The UK supports the UNFCCC and wants to see as many countries as possible participate. The UK will continue to work with all countries to tackle the urgency of the climate crisis, and will pursue an energy policy that gives us energy security and helps get bills down for good.

With reference to the Warm Homes Plan, published on 21 January 2026, what proportion of consumer loans will be zero-interest.

The Government will set out further detail on the consumer loan offer in due course. Engagement with the lending industry is ongoing to support the development of a range of options suitable for different consumers and different technologies. Interest rates will vary across different types of products, all significantly discounted from market rates. This will ensure households have meaningful choice while keeping costs as low as possible. The Government's priority is to make these technologies affordable for households so that every family can access them and benefit from the associated bill savings.

What the Warm Homes Agency's scope will be; and what assessment he has made of the potential impact of that agency working within local authorities on the (a) impartiality, (b) independence and (c) trust in that service.

The Government is currently refining the Agency’s scope, specifically exploring how to work with local partners to maximise the impact of place-based delivery. Maintaining impartiality, independence, and public trust is fundamental to the delivery of the Warm Homes Plan. These principles are central to the ongoing work to finalise the Agency’s core functions and operational specifications.

What assessment he has made of the potential impact of the extension of ECO4 being limited to December 2026 on insulation installers and the supply chain.

The government recognises the closure of the supplier obligation schemes may present challenges for companies in the supply chain. The government is committed to supporting businesses to transition to new opportunities in the sector. The Warm Homes Plan sets out government’s plans to invest nearly £15 billion in home upgrades. The number of UK jobs supported in clean energy industries and their supply chains is estimated to increase from around 440,000 today to around 860,000 by 2030 and we are working closely with the sector to support its growth.

How his Department plans to tackle skills shortages in retrofitting and home decarbonisation.

The Warm Homes Plan will create good jobs across the country, with 180,000 additional high-quality, well-paid, future-proofed jobs in energy efficiency and clean heating by 2030. We are investing £15 billion to upgrade up to five million homes by 2030; the biggest ever public investment to upgrade British homes. This demonstrates our commitment to ramp up retrofit delivery. Chapter Six of the plan outlines the actions that the Government will be taking to support and facilitate growth, jobs and innovation, including establishing a new Workforce Taskforce in partnership with the Trade Unions Congress. The Plan will unlock £38 billion in total investment across the Parliament, and with additional funding for skills, innovation and UK manufacturing, we will ensure that British workers and businesses reap the benefits.

What assessment he has made of the potential merits of introducing social energy tariffs to reduce fuel poverty.

The Government knows that more needs to be done to support vulnerable households which are struggling with bills whilst we transition to clean power. That is why the Autumn Budget acted to take an average £150 of costs off people’s energy bills. This support comes on top of the £150 off energy bills provided for around 6 million families under the Warm Home Discount this winter, cutting fuel poverty. DESNZ is working closely with other Government Departments through the ‘Kickstarter’ programme to test how public sector data can be better joined up to improve access to government programmes. This project will help pave the way for better targeted help to ensure those who are struggling to pay their bills get the support they need.

What discussions he has had with the Chancellor of the Exchequer on the potential impact of Crown Estate leasing costs on the strike prices for future Contracts for Difference auctions for offshore wind.

The Crown Estate own and manage the seabed around England, Wales and Northern Ireland. They run transparent, competitive processes that treat bidders equally and balance commercial outcomes alongside its wider environmental, social and economic objectives.Delivering value for money is the Government’s top priority. The Government has made reforms to the Contracts for Difference auction to maximise competition between bidders and reduce the costs to consumers.The Government won’t buy at any price and if specific projects or technologies aren’t competitive, we will look elsewhere.

What assessment he has made of the potential impact of the Crown Estate's auctions for seabed leases on the cost of offshore wind contracts.

The Crown Estate own and manage the seabed around England, Wales and Northern Ireland. They run transparent, competitive processes that treat bidders equally and balance commercial outcomes alongside its wider environmental, social and economic objectives.Delivering value for money is our top priority. The Government has made reforms to the Contracts for Difference auction to maximise competition between bidders and reduce the costs to consumers.The Government won’t buy at any price and if specific projects or technologies aren’t competitive, we will look elsewhere.

What steps he is taking to ensure the effectiveness of funding for renewable energy projects through the Contracts for Difference Allocation Round 7.

An initial budget of £900 million is available for fixed-bottom offshore wind in Allocation Round 7, which is the largest ever initial budget for OFW. The Government has the ability to view unsuccessful bids and adjust the budget later, if it is good value for consumers. The Government has also confirmed budgets of £180m for floating offshore wind projects, £295 million for established technologies such as solar PV and onshore wind, and £15 million for emerging technologies. We expect the budgets and competitive bidding to drive a value for money outcome for billpayers.