The Scottish Government has launched a new £20 million grant fund to help public sector organisations decarbonise their buildings.
The fund, called Scotland's Public Sector Heat Decarbonisation Fund, will replace the long-running Scottish Energy Efficiency Loan Scheme. As part of the Scottish Government's wider plan to spend £1.8 billion on decarbonising Scotland's buildings in this current parliamentary session, the aim of the fund is to reduce emissions from public sector buildings by 80% by 2030, and to achieve net zero emissions by 2045.
The fund will be open to local authorities, universities, and arm's-length external organisations. It will support a range of heat decarbonisation measures, including:
- The installation of heat pumps
- The use of district heating networks
- The retrofitting of buildings with insulation
- The development of new low-carbon technologies
Patrick Harvie, 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.”
Alongside the PSHD fund, the Scottish Government is also providing £10 million in funding to support the development of a heat decarbonisation roadmap for the public sector. The roadmap will set out a clear pathway for how public sector buildings can be decarbonised in a cost-effective and sustainable way.
The launch of the new fund is a significant step forward in Scotland's journey to net zero. It will help to reduce emissions from public sector buildings, which currently account for around 10% of Scotland's total emissions. The fund will also create jobs and boost the economy.
Benefits of decarbonising public sector buildings include reduced emissions, improved air quality, increased energy efficiency and increased comfort, this these helping to reduce energy bills and deliver on the Scottish Government’s wider net zero ambitions.
Scottish public sector organisations that are interested in applying for funding can find more information on the Scottish Government website.
