Framing retrofit and net zero as positive propositions 

Iain Davies, Supplier Engagement Manager at Changeworks, outlines the crucial factors in facilitating a robust retrofit supply chain.

Scotland has a legally binding target of net zero by 2045 – five years earlier than the UK. However, whilst as a country we’ve set ambitious deadlines, we’ve been less successful in taking action to meet them. As a result, we’ve missed almost all of our interim climate targets.

As with the wider transition to net zero, the retrofit industry needs supporting with more than just good intentions.

Back in 2021, the Scottish Government estimated that around 2.6 million homes across Scotland will need insulation upgrades and a low/zero carbon heating system. The same report puts it another way: we need to retrofit 113,000 homes per year, (490 homes per day) to meet the 2045 target. Needless to say, we are nowhere near that pace of change.

Seeing retrofit as an opportunity

Rather than feeling pessimistic about the scale of the task, we could be viewing it as a huge opportunity.

For the next twenty years, on any given day, at least 490 homes will need some form of retrofit. On top of this, any new builds will also require Zero Direct Emissions Heating (ZDEH) and high levels of insulation. Consequently, it’s clear that there will be high demand for services all along the retrofit supply chain.

“The Government needs to support micro and small enterprises to reskill their staff and adapt their business.”

If policy makers adopt and support this narrative, it stands a real chance of becoming the dominant story we tell about retrofit.

Firstly, policy makers must provide the supply chain with market certainty. Whilst we know what must happen by 2045, we need legislation to create a consistent pipeline of work right now.

At Changeworks, we were encouraged to see the Heat in Buildings Bill included in the most recent Programme for Government. This will set much-needed timelines for home decarbonisation and create imminent demand for retrofit services. That’s why it’s vital the Heat in Buildings Bill passes as soon as possible.

Secondly, and just as importantly, the Government needs to support micro and small enterprises to reskill their staff and adapt their business. Without this, we risk the scenario of having yet another target but no real means with which to meet it. This is where the optics of retrofit need reworking: it cannot be seen as something that’s being forced onto the industry.

Finally, the retrofit sector needs to be marketed as an attractive career prospect for young people coming through schools and colleges. Continuing and further support for apprenticeships will be an important part of getting people into the workforce. Again, this is about reframing the narrative around decarbonisation as an opportunity and perhaps even a civic service.

Continuing the conversation

At Changeworks, we’ve been considering the barriers to retrofit for some time. In February 2025 we’ll be hosting the Changeworks Connects Conference, bringing together key players across national policy, local government, delivery agents and retrofit supply chains in Scotland.

Through partnership and cross-sector work, we’re hoping to shift the narrative on retrofit and take decisive steps to grow the necessary mechanisms for delivery. If you or your organisation are on a similar journey, we’d love to see you there.