More funding announced for decarbonisation of the public sector estate

WRITTEN BY Local Partnerships
POSTED ON 19th March 2021

Phase two of the Public Sector Decarbonisation Scheme was announced on 17 March, with applications opening on 7 April 2021. The fund will close when sufficient high-quality applicants have been submitted, so you need to act now to secure funding.

£75 million grant funding is available for financial year 2021-22 to support public sector organisations in tackling heat decarbonisation of their estates. Successful projects need to complete by 31 March 2022.

The focus is on a “whole building” approach, and there are some key differences from phase one, which reflect and support the Government’s increased focus on heat decarbonisation to meet UK’s Net 2050 target.

Two new criteria must be met for applicants to be successful in securing funding:

  • Applicants must be using a fossil-fuelled heating system
  • The heating system in question must be coming to the end of its useful life

Most public sector buildings still rely on fossil fuel-based heating systems, so this provides the opportunity to secure funding, make the transition to low carbon heating and contribute to net-zero targets.

In phase one of the public sector decarbonisation fund, 317 public sector organisations were awarded funding for 429 energy efficiency and heat decarbonisation projects, valued at £932 million. 23 of those organisations secured the funding using the Re:fit 4 framework, with support to prepare and submit applications.

Re:fit 4 offers a swift procurement route with an OJEU compliant framework of 16 providers, enabling faster procurement and moving any risk to the service provider. It is underpinned by a performance guarantee, providing certainty to organisations and de-risking projects, protecting the client and their investment. It is available to all public sector bodies and is an Energy Performance Contracting Framework, meaning carbon and energy savings are guaranteed.

To find out more about we can help support and prepare applications for this round of funding specifically, or if you want to explore how we could help you accelerate your journey towards achieving net-zero, contact Rachel at

Further information on phase 2 of the Public Sector Decarbonisation Fund can be found on the Salix Finance website, along with guidance on how to apply.

Is it easy being green? Read more from @HuwRussell 👇


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