The new Plaid Cymru Government in Wales has committed to bring the net zero target forward to 2040. This is undoubtedly ambitious, so where could it make a big difference, quickly?

Shifting existing homes to clean heat is one of the biggest challenges for this term as the way we heat them is by far the biggest cause of domestic carbon emissions. We have the technology and the know-how to transition our heat away from fossil fuels but deploying this will need the right policy environment.

With the Senedd Committees currently deciding their work programme for the new term, we wrote to the Local Government, Housing and Planning Committee and the Climate Change, Environment, Sustainability and Rural Affairs Committee. We want them to hold the Welsh Government to account on four key issues if Wales is to make tangible progress on reducing domestic carbon emissions.

1. Electrification

What is the Welsh Government doing to shift all Welsh homes to electric heat and power? Heat accounts for 45% of Wales’s energy consumption, almost entirely from fossil fuels. While there’s a role for insulation and improving the energy efficiency of homes, stopping the use of fossil fuels is the only really credible way to significantly bring down carbon emissions. Wales needs 580,000 heat pumps installed by 2035, but we're only 5% of the way there. During this Senedd term alone 50,000 heat pump installations are needed. Welsh Government must send clear signals to industry and households that this transition is a priority. Area-based approaches unlock economies of scale and can attract private investment at neighbourhood level.

2. Heat networks

What steps is the Welsh Government taking to support the development of heat networks in Wales? Heat networks can harness waste heat from sources including mine water, data centres and industry. However, local authorities currently lack the powers to mandate waste heat sales or require new developments to connect. This is an area where Wales is lagging behind England and Scotland, like in designating heat network zones or giving enabling powers to local councils.

3. Finance

What is the Welsh Government doing to enable and unlock finance for clean heat? Between 2026 and 2030, retrofit requires £782 million in Wales. The discontinuation of the Energy Company Obligation (ECO) scheme, which funded 63% of heat pump installations, leaves a significant gap. The Welsh Government's Nest scheme installed just 13 heat pumps in 2024 to 25. Solutions include scaling the Green Homes Wales loan with innovative finance models, leveraging blended finance for community projects, exploring Climate Bonds and building local authority capacity to attract private investment.

4. Prioritise the right measures

To the Climate Change, Environment, Sustainability and Rural Affairs Committee, we have one overall message: make sure that the new carbon emissions reduction plan for Wales, due to be published by the end of this year, is prioritising the right measures for the right reasons.

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Download our full submissions to the Local Government, Housing and Planning Committee and the Climate Change, Environment, Sustainability and Rural Affairs Committee below.