This page provides information on the criteria and application timetable for Phase 2 of the Public Sector Decarbonisation Scheme, and grants awarded under Phase 1 of the Public Sector Decarbonisation Scheme. Both phases are managed by the BEIS delivery body Salix Finance.
Phases 1 and 2 of the Public Sector Decarbonisation Scheme are now closed to applications
We have published a list of confirmed projects for Phase 1 as of mid-March 2021. We will update the list as grants are confirmed until all funding has been allocated.
Phase 2 of the Public Sector Decarbonisation Scheme
Phase 2 of the Public Sector Decarbonisation Scheme provides £75 million of grant funding for the financial year 2021 to 2022. It has a stronger focus on heat decarbonisation than Phase 1, in order to deliver greater carbon emission reductions. It supports the public sector in taking a ‘whole building’ approach when decarbonising their estates.
Phase 2 opened on 7 April 2021 and closed to applications on 13 April 2021. Successful projects need to complete by 31 March 2022.
For more information about Phase 2, please see the Salix Finance site.
Phase 1 of the Public Sector Decarbonisation Scheme
Phase 1 of the Scheme provides £1 billion in grants as part of the Chancellor’s ‘Plan for Jobs 2020’ commitment to support the UK’s economic recovery from COVID-19, supporting up to 30,000 jobs in the low carbon and energy efficiency sectors.
Phase 1 will reduce non-traded carbon emissions from the public sector by up to 0.1 MtCO2e/year and up to 0.5 MtCO2e over each of Carbon Budgets 4 and 5. This is equivalent to taking nearly 45,000 cars off the road.
Phase 1 closed to new applications on 11 January 2021. The scheme runs until 30 September 2021.