Details of Phase 4 of the Public Sector Decarbonisation Scheme
Published 29 February 2024
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In February 2024, the Department for Energy Security and Net Zero (DESNZ) confirmed Phase 4 of the Public Sector Decarbonisation Scheme (PSDS), to be delivered by Salix Finance.
A funding pot of £1.17 billion for public sector decarbonisation was confirmed in December 2023 for public sector decarbonisation:
- £670 million available in 2025 to 2026
- £300 million in 2026 to 2027
- £200 million in 2027- 2028
Up to £335 million of the funding for 2025 to 2026 is now being allocated to the second year of Phase 3c.
The remainder of the profile is to be allocated to Phase 4 of the PSDS and the devolution Trailblazer deals with the Greater Manchester Combined Authority and the West Midlands Combined Authority.
The next phase of the scheme will move to a more targeted method of allocating funding to ensure emissions are being cut most effectively.
Applicants, as in Phase 3 of the scheme, will again be encouraged to make their own choice as to whether they want to apply for funding across single or multiple financial years to deliver their projects.
While applications for Phases 1, 2 and 3 of the scheme have been awarded grants based on the order in which they were received, applications received under Phase 4 will be awarded grants using a more targeted method of allocating funding. Projects delivering the best value for money based on the most direct carbon emission reductions will be prioritised during assessment. This will ensure funding is targeted towards high quality projects that contribute most to the scheme’s carbon saving goal.
A proportionate distribution of funds across different sectors of the public estate will remain in place through sector allocations.
Further details about the allocation process will be announced in due course.
We expect to publish guidance for Phase 4 of the PSDS in Summer 2024.
If you are interested in finding out more about Phase 4, please subscribe to the Salix Finance’s newsletter: this is the best way to get updates on future funding rounds.