Schools, pools, and hospitals will be supported to make energy-efficient upgrades, with a more than half-a-billion-pound government investment into public sector decarbonisation

The new projects will cut energy bills and reduce emissions in the public sector as part of the government’s plan to reach net zero targets.

To reduce the use of fossil fuels in the public sector, heat pumps, solar panels, insulation, and low-energy lighting will be rolled out.

The country has become the first major economy to halve its emissions

Public sector decarbonisation is estimated to save £650m per year on average to 2037.

Minister for Energy Efficiency and Green Finance Lord Callanan said: “From school corridors to the businesses that power up our economy, we want to make sure buildings of all shapes and sizes are supported to deliver net zero.

“By allocating over £557m, we are standing steadfast behind our public sector and local businesses, providing the help they need to make the switch to cleaner, homegrown energy.”

Over 1,000 projects have received funding through the Public Sector Decarbonisation Scheme

Thousands of projects across the UK have received funding through the scheme since 2020.

Projects receiving funding in this phase include:

  • Royal United Hospitals Bath NHS Foundation Trust received over £21m to decarbonise three buildings by installing new heat pumps, insulation, double glazing, and LED lighting
  • Loughborough University received over £2m to decarbonise their Olympic-size swimming pool by replacing old gas-fired boilers with efficient, cleaner heat pumps
  • Surrey County Council received over £5m to cut emissions across 19 sites, including libraries, nursing homes, community centres, Guildford Fire Station, schools, and the council’s headquarters in Reigate

High-energy businesses awarded funding to cut carbon emissions

Businesses with high energy use have also been awarded £27.5m from the Industrial Energy Transformation Fund to reduce their bills and carbon emissions. The new projects include:

  • Pilkington UK will consolidate its glass manufacturing to a single facility in St Helens, reducing carbon emissions by using an upgraded furnace
  • Sofidel will replace its natural gas steam boiler with a green hydrogen one at its Leicester paper mill to transform its energy-intensive process
  • Plastipak UK will upgrade 13 drying systems at its Wrexham plant to save energy in producing preforms and containers for food, drink, and dairy products

Helping public sector organisations reach decarbonisation targets

The announcement highlights the progress made towards the government’s commitment to spend more than £12bn on energy efficiency by 2028.

Salix chief executive Emma Clancy said: “The climate crisis is one of the greatest challenges of our time. It requires all of us, including governments and businesses, to make change and reduce our carbon footprint.

“The Public Sector Decarbonisation Scheme enables the public sector to tap into a fund which can transform our public buildings.”

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