It’s been an active week across the net zero and energy policy landscape, with four significant updates covering carbon budgets, heat network regulation, reforms to the Energy Performance of Buildings (EPB) regime, and the release of a new net zero buildings standard.

To help organisations stay up to date, our Head of Consultancy, Timothy Holman, summarises the essential points from each announcement.

Government Outlines Next Steps for Energy Performance of Buildings Reform
The UK Government has issued a partial response to its consultation on EPB reform for England and Wales. This phase concentrates on what Energy Performance Certificates (EPCs) will measure and when they will be required, with further detail on areas such as Display Energy Certificates, data quality, and auditing rules expected later in 2026. The reforms will also strengthen air‑conditioning inspection requirements, which may affect how organisations plan their TM44 assessments.

The intention is to make EPCs more useful and closely aligned with net zero goals, including introducing new headline metrics for domestic buildings. Subject to parliamentary approval, regulations are expected in 2026 to implement these changes ahead of the rollout of updated domestic EPCs.

For commercial buildings, the Government will maintain the carbon‑based Environmental Impact Rating (EIR) as the primary metric, recognising its established role in reporting and regulatory compliance.

For organisations managing property portfolios, these updates reinforce the ongoing focus on commercial EPCs and wider building energy performance, shaping compliance planning, investment decisions and estate management.

Read more in our Market Briefing: Government’s Latest Response to the Reforms to the Energy Performance of Buildings (EPB) Regime.

Seventh Carbon Budget Signals Expectations for the Late 2030s
The Climate Change Committee’s Seventh Carbon Budget represents a major milestone on the UK’s pathway to net zero. Covering 2038–2042, it will set legally binding limits on greenhouse gas emissions and underscores the expectation that emissions must fall sharply by the end of the 2030s.

Although the budget is national in scope, it carries clear implications for organisations. Progress will rely on continued electrification, further decarbonisation of the power system and reductions in energy demand across buildings, transport and industry. Businesses and public sector bodies should anticipate closer scrutiny of long‑term carbon strategies and how today’s investment choices will impact performance in future decades.

Explore its implications in our Market Briefing: Seventh Carbon Budget: Implications for UK Organisations.

Ofgem Issues Final Guidance on Heat Network Reporting Requirements
Ofgem has released its final guidance on routine data reporting for heat networks, following consultation with operators and industry stakeholders. The guidance clarifies what information heat network operators and suppliers must submit, who must report, and the timetable for doing so.

This reporting sits within the wider regulatory framework established by the Energy Act 2023, which introduces formal economic regulation for heat networks for the first time. Ofgem has confirmed that the data will inform performance monitoring and support consumer protection. Revisions to the final guidance include clearer definitions and updates on backdated reporting requirements.

Organisations owning, operating or supplying heat networks—including local authorities, housing providers and ESCOs—will need to ensure systems and governance are robust enough to meet these obligations.

Read more in our Market Briefing: Ofgem Publishes Guidance on Regular Data Reporting for Heat Networks.

CIBSE Releases Version 1 of the UK Net Zero Carbon Buildings Standard
CIBSE and partner organisations have launched Version 1 of the UK Net Zero Carbon Buildings Standard, providing the sector’s first unified, science‑based benchmark for what “net zero carbon aligned” means in practice.

The voluntary standard applies to both new and existing buildings and is designed to address inconsistencies around net zero claims. Version 1 draws on extensive industry testing and places strong emphasis on real‑world, in‑use performance rather than design figures alone.

While not a regulatory requirement, the Standard is expected to shape best practice, influence procurement and support credible net zero pathways across the built environment.

Working with an experienced Net Zero Consultant can help organisations interpret the requirements and integrate them into strategy.

Read more in our Market Briefing: CIBSE Publishes UK Net Zero Carbon Buildings Standard Version 1.

Heading in the Right Direction
Collectively, these four developments point to a clear trend: tighter regulatory oversight, better performance data, and rising expectations around the credibility of net zero commitments. For UK organisations, they reinforce the importance of integrated energy, carbon and estates strategies that anticipate future policy shifts.

As standards and regulation continue to evolve, organisations that invest early in strong data, governance and long‑term decarbonisation planning will be best placed to manage risk, demonstrate compliance and support the UK’s transition to net zero.