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Public Sector Decarbonisation Scheme

The Public Sector Decarbonisation Scheme provides grants for public sector bodies to fund heat decarbonisation and energy efficiency measures.

Phase 3b application window is planned to open in September 2022.

The Public Sector Decarbonisation Scheme supports the aim of reducing emissions from public sector buildings by 75% by 2037, compared to a 2017 baseline, as set out in the 2021 Net Zero and Heat and Buildings strategies.

Phase 3 of the Public Sector Decarbonisation Scheme will provide £1.425 billion of grant funding over the financial years 2022/2023 to 2024/2025, through multiple application windows. The first Phase 3 application window, Phase 3a, closed to new applications in November 2021. The guidance notes and the application form for the next application window, Phase 3b, are now available to view on the Salix Finance website. The Phase 3b application window is planned to open in September 2022.

Phase 1 of the Public Sector Decarbonisation Scheme provided £1 billion in grants over the financial years 2020/2021 and 2021/2022 as part of the Chancellor’s Plan for Jobs 2020 commitment to support the UK’s economic recovery from COVID-19. It aimed to support up to 30,000 jobs in the low carbon and energy efficiency sectors and reduce carbon emissions from the public sector.

Phase 2 of the Public Sector Decarbonisation Scheme provided £75 million of grant funding for the financial year 2021/2022. It had a stronger focus on heat decarbonisation than Phase 1 in order to deliver greater carbon emission reductions. It supported the public sector in taking a ‘whole building’ approach when decarbonising their estates.

The BEIS delivery body Salix Finance manages the Public Sector Decarbonisation Scheme. Visit the Salix Finance site for more information about the scheme.

The Public Sector Low Carbon Skills Fund provides grants for public sector bodies to put in place a heat decarbonisation plan, providing them with information they need to develop future applications to the Public Sector Decarbonisation Scheme.

Both the Public Sector Decarbonisation Scheme and the Public Sector Low Carbon Skills Fund are open to public sector bodies in England and areas of reserved public services across the UK.

Public Sector Decarbonisation Scheme Phases

Published 1 October 2020
Last updated 2 August 2022 + show all updates
  1. Phase 3b application window is planned to open in September 2022.

  2. PSDS Phase 3 now open to applications.

  3. Further information about Phase 3 added. It will open to applications on Wednesday 6 October 2021.

  4. First published.