Mr. Seán Armstrong:

The first question was around what percentage are rated A3 or A2. The current performance requirements are implemented through part L of the building regulations. In 2011, a performance requirement was introduced that was equivalent to A3, although it is not set at A3. That took full effect in 2013 and the transition period for it finished in 2013. The CSO data since 2015 have shown that 97% of dwellings built since 2015 are A3 rated dwellings, which is because the minimum performance requirement under the building regulations was A3. The NZEB requirement was set based on the cost-optimal calculations, which are the life-cycle calculations, and it comes out as equivalent to an A2 rating for most dwellings.

That regulation was signed by the Minister at the end of last month and was published two weeks ago. For any building regulation, one has to give a lead-in time for the industry to prepare, so it takes effect for all new dwellings commencing after 1 November 2019. There is then a one-year transition period, which allows dwellings to get to wall-plate level because, obviously, there are many buildings in design and that have received planning at this stage, and it would be unfair to ask them to go back and redesign when they have only been given a six-month lead-in time. That explains why there is a one-year transition period. They have up to 31 October to get to wall-plate level, which leaves a reasonable amount of time for all dwellings to achieve the NZEB performance requirements by 31 December 2020.

The next question was about fossil fuel boilers. When talking about phasing out fossil fuel boilers, we have to recognise we have had a ten-year roadmap in place to improve the performance of dwellings. It started in 2007, when we introduced mandatory renewables and mandatory airtightness testing. In 2011, we advanced the fabric performance and achieved an improvement in performance of 60% over 2005 levels. This year, we are achieving the final step to NZEB, which is 70% over 2005 levels.

We have already gone through a roadmap of improving the performance requirements of buildings. As Mr. Gannon's slide showed, it has had a significant effect already in regard to implementing renewables and phasing out fossil fuel boilers. Mr. Gannon's slide showed that fewer than 100 dwellings had heat pumps installed in 2015 whereas the most recent CSO data showed that over 4,500 dwellings have heat pumps installed. Heat pumps have effectively displaced oil boilers in new dwellings, so we have begun the phase-out of fossil fuel boilers. The CSO data also show that solid fuel is no longer being installed as the main heating source in new dwellings, which was another point at issue. What remain are gas boilers. The installation of gas boilers combined with solar PV has the same net emissions as a new dwelling with a heat pump installed, so the net emissions of the dwelling are the same, whether it is a gas boiler with solar PV or a heat pump that is installed. Notwithstanding that, we recognise the move towards the elimination of or phasing out of fossil fuel boilers.

In all the points made earlier, there was recognition of capacity and building the supply chain. There was talk about getting the technology working, having the right skills, training up the plumbing industry and training up apprentices. In order to build the supply chain, or in order to phase out fossil fuel boilers and move to gas fossil fuel boilers, we think it is important that the supply chain is developed. Standards need to be produced by the National Standards Authority of Ireland, NSAI, training courses need to be put in place and competence installers need to be available to the market.

Right now, that infrastructure is there to support the delivery of housing for gas boilers but it needs to be developed for the heat pump market. In that regard, we are talking to the Departments of Business, Enterprise and Innovation and Education and Skills in the all-of-Government action plan, and actions are being developed to build the supply chain. In addition, we are also working with the NSAI to develop heat pump standards and a proposal will be put forward to the NSAI in the coming weeks to develop that national standard. We are also using QualiBuild and the BUILD UP training programme that has been developed, working with key stakeholders, particularly Waterford and Wexford Education and Training Board. We have developed that into a national training specification for NZEB and Waterford and Wexford ETB is delivering it at regional level right now. As part of the all-of-Government plan, we are in discussions with the Department of Education and Skills about rolling that out at a national level.

We have made significant progress with the requirements for renewables with the advancement of building regulations in phasing out fossil fuel boilers. We recognise that further work can be done and we are working with the relevant Departments to build capacity in the supply chain. We will be reviewing our regulations and current performance requirements in the next five years to take account of any developments and innovations. We will review our building regulations again at that stage to take account of any innovation in technology, reduction in costs and the capacity of the supply chain to continue the roadmap towards the reduction of carbon emissions from new dwellings.