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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.

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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.

Published 1 October 2020
Last updated 18 May 2021 + show all updates
  1. Summaries of PSDS Phase 1 projects added.

  2. List of Public Sector Decarbonisation Scheme Phase 1 grant recipients updated.

  3. Public Sector Decarbonisation Scheme Phase 2 closed to applications on 13 April 2021.

  4. Phase 2 of the Public Sector Decarbonisation Scheme now open to applications.

  5. Public Sector Decarbonisation Scheme - list of Phase 1 grant recipients updated.

  6. Phase 2 key dates announced and link to guidance added.

  7. List of approved projects for Phase 1 of the Public Sector Decarbonisation Scheme added.

  8. The Public Sector Decarbonisation Scheme closed to applications as of 11 January 2021.

  9. The scheme has attracted a large number of applications, which are currently in the process of being assessed. Applications for the scheme remain open, but will close when all the funding has been allocated.

  10. First published.