In May 2024, selected public sector organisations in England were awarded funding through Phase 3c of the Public Sector Decarbonisation Scheme.
What is the Public Sector Decarbonisation Scheme?
The Public Sector Decarbonisation Scheme supports government targets for reducing carbon emissions from public sector buildings by 75% by 2030.
During phase 3 of the scheme, £1.425billion of grant funding has been awarded to public sector organisations for decarbonisation projects, through three application windows; a, b and c.
In the latest phase, 3c, more than £530million of funding has been allocated to schools, universities, hospitals and emergency services for decarbonisation projects. Outside of Greater London, the region with the highest allocation of funding was the West Midlands, receiving £76,941,514. The South West received £43,845,891.
In this article we will take a closer look at the £100million+ total awarded to these two regions.
What does decarbonisation mean for the public sector
For the public sector, decarbonisation is about reducing or eliminating the carbon emissions generated by public buildings, their services and operations. This is achieved through various means such as renewable energy installations, improved energy efficiencies, using electric vehicles for public transport, and the promotion of sustainable building services and practices.
Public Sector Decarbonisation Scheme Phase 3c funding recipients
The much anticipated announcement of Phase 3c grant recipients confirmed that 189 public sector organisations had been awarded grants for 222 heat decarbonisation and energy efficient projects.
In the West Midlands, 16 public sector organisations received a share of the £76 million+. These included universities, NHS Trusts, local authorities, schools and colleges. Of note were the funding allocations to Shrewsbury & Telford Hospital NHS Trust of £16 million+, and Coventry University receiving almost £13 million.
In the South West, the funding was spread more widely across 25 public sector organisation projects, with Royal United Hospitals Bath NHS Foundation Trust receiving £21 million+, almost half of the entire regional allocation. Various emergency services received funding, as well as schools, colleges, universities and NHS sites.
Decarbonisation challenges and opportunities in the West Midlands and South West
Despite the receipt of funding, financial constraints are likely to present challenges for decarbonisation. Once funding is granted, it must be used within the following 12 months so if additional funds are needed, they must be made available. Decarbonisation impacts other areas of a building which may then also need to be upgraded. This all comes at a cost.
Decision makers in public sector organisations and construction professionals need to have a clear understanding of what decarbonisation is. It is often mistaken for general construction, so educating key players to differentiate between the two, and understand the value of decarbonisation, is essential.
Despite the challenges, decarbonisation presents many opportunities for funding recipients. Energy efficiencies lead to reduced energy consumption which results in long term cost savings and a smaller carbon footprint. Decarbonisation also improves a public sector organisation’s social value and boosts the creation of green jobs.
The potential impact of successful decarbonisation projects on local communities and economies is also significant. Energy efficient public buildings create healthier environments, and the local authority funds used to operate those buildings is dramatically reduced. According to an article in The Construction Index, three million heat pumps will need to be installed in homes in the next five years if the UK is to reach net zero targets by 2030. This demonstrates how far away the UK is from its goals and how funding recipients’ decarbonisation projects can help to drive change.
Your partner in decarbonisation
Procure Partnerships is a trusted partner for delivering decarbonisation projects in the West Midlands and South West regions. We offer wide-ranging expertise in public sector decarbonisation and retrofit projects, and support public sector organisations in making best use of the government decarbonisation funding.
Across our nine regions we have 87 framework contractor members, averaging 8 contractors per price band for decarbonisation and retrofit projects. We offer pre-procurement, tender and post-tender procurement support servicesthrough regional Key Account Managers and dedicated project management teams.
The £100m+ decarb dream
We congratulate the Phase 3c grant recipients in the West Midlands and South West.
Whether you were awarded funding and need advice on how to use it, or you are a public sector organisation with decarbonisation ambitions, you can contact me to discuss your decarbonisation project by emailing lauren@procurepartnerships.co.uk, or call me 0739 947 5944.
References
- UK – Public Sector Decarbonisation Scheme
- UK – Notice – Phase 3c Public Sector Decarbonisation Scheme: grant recipients
- The Construction Index – Article – Three million heat pumps need in next five years
