- Additional support for net zero transition.
A new funding scheme has been launched offering up to £20 million
in grants to support local authorities, universities and
arm’s-length external organisations decarbonise their buildings.
Scotland’s Public Sector Heat Decarbonisation Fund will
eventually replace the existing Scottish Energy Efficiency Loan
Scheme, which has been running since 2006 and offered zero
interest loans for energy efficiency improvement projects.
The new scheme is intended to increase the number of public
sector organisations taking forward heat decarbonisation measures
in their buildings.
The funding forms part of the £200 million already committed to
the public sector for energy efficiency and renewable heating
over the next five years - part of the wider plan to spend £1.8
billion in this current parliamentary session on decarbonising
Scotland’s buildings.
Zero Carbon Buildings Minister said:
“Scotland’s buildings account for approximately a fifth of all
our emissions and our aim is to ensure that, by 2045, our
buildings no longer contribute to climate change. This means that
our schools, offices, hospitals, libraries and homes will all
need to improve their energy efficiency and install zero
emissions heating.
“Public sector bodies have already achieved a lot, but we need to
go further. The design of the new scheme reflects the changing
needs of the sector, allowing public sector organisations to
invest in projects with higher capital costs and which cannot
always be invested in on a spend to save basis.
“Moving from a loan scheme to direct grant awards for the first
time represents a very significant commitment from the Scottish
Government to support the delivery of these challenging targets.”
As per the criteria for the previous scheme, only public sector
bodies with borrowing powers can apply to the new fund.
Applicants will be required to provide 20% match funding for
projects.
Background
Scotland’s Public Sector Heat Decarbonisation Fund is being
delivered on behalf of the Scottish Government by Salix Finance,
which operates the existing Scottish Energy Efficiency Loan
Scheme. More than £75 million has so far been invested in energy
efficiency projects in Scotland through the existing scheme,
which is forecast to save the public sector more than £202
million over the lifetime of the projects.
Applications will open via the Salix Finance website
later this summer.
Announcements regarding future funding will be made in due
course.
