New Report Finds Government Needs To Match Climate Rhetoric With Action For Heating Sector

The Alliance for Zero Carbon Heating (TAZCH) has recently published a landmark report demonstrating that the Irish Government could slash residential heating emissions quickly, cheaply, without disruption to consumers and at zero cost to the taxpayer.

This can be done by altering its proposed Renewable Heat Obligation (RHO) rates of 1.5% and 3% and introducing a 20% blend of renewable liquid fuels. This small change would create the equivalent carbon saving of installing 160,000 heat pumps, without the need for costly retrofitting, disruption to households, or grid upgrades. The report, Renewable Heat Obligation – We Must Go Further and Faster, was published by TAZCH in June 2025 and is available to download at: www.tazch.ie.

Founded by Fuels for Ireland, OFTEC and UK and Ireland Fuel Distributors Association (UKIFDA), The Alliance for Zero Carbon Heating (TAZCH) is a representative body advocating for the use of renewable liquid fuels in Ireland’s home heating sector. TAZCH brings together businesses from across Ireland working in the home heating sector, offering innovative solutions that reduce emissions and create a more sustainable heating system for Ireland.

Philip Hannon, CEO of TAZCH, said: “This is the quickest, simplest and most equitable way to cut carbon emissions from home heating in Ireland. Households would not need to change their boiler, no upfront cost is involved, and the emission savings are immediate. We already have the infrastructure, the trained workforce, and the renewable fuels ready to go. All we need now is the political will.”

The findings challenge the Government’s current heat decarbonisation strategy, which relies almost exclusively on deep retrofitting and heat pumps. These options remain financially out of reach for many, especially in rural Ireland where 700,000 homes rely on liquid fuels, and where incomes are lower and housing stock older.

Philip Hannon continued: “There’s no reason this should be an either/or debate. TAZCH fully supports heat pumps where they’re appropriate – but we need a complementary approach. A 20% blend of renewable liquid fuel delivers the same carbon savings as 160,000 heat pumps, but it would take us 26 years to install that many at the current rate. We don’t have that time.”

The report warns that current Government proposals for an RHO – with targets of just 1.5% rising to 3% – will fail to drive real emissions reductions. This can be easily rectified by acknowledging that the two main heating vectors of gas and oil which represent c80% of all Irish households are very different. They would benefit from two separate schemes, with the liquid sector cojoined with the already established liquid obligation within the Renewable Transport Fuel Obligation which covers the same companies. Doing so will allow the liquid heating sector to reach a 20% ambition, immediately delivering meaningful climate impact.

“As it stands, the scheme risks creating a paper-based certificate trading system that delivers no meaningful climate impact and excludes liquid fuel users from a viable decarbonisation route”, Philip Hannon added.

TAZCH is calling on Government to:
– Separate the liquid fuels and gas sector into different schemes
– Create a dedicated Renewable Liquid Fuels Obligation incorporating obligations for transport and heating
– Set an immediate 20% renewable liquid fuel obligation for home heating.

“Ireland risks locking out 40% of households from decarbonisation while handing them higher energy bills with no climate benefit. We urge the Minister to ensure the RHO works for everyone – not just some. Let’s go further and faster, together.” Philip Hannon concluded.

Further information is available at www.tazch.ie