Scotland Invests £20 million in Net Zero

The authorities to offer the sum in the form of grants to help locals decarbonise their buildings

A funding scheme has been launched in Scotland to offer up to £20 million in grants to help 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 offering zero-interest loans for energy-efficiency improvement projects to public sector bodies with borrowing powers.

The move is part of the government’s net zero transition plan. The scheme is intended to increase the number of public sector organisations taking forward heat decarbonisation measures across their estates. The grant aid 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 the current parliamentary session.

The new fund is being delivered on behalf of the Scottish Government by Salix Finance, which operates the current Scottish Energy Efficiency Loan Scheme, which has already seen more than £75 million invested in energy-efficiency ventures in the country to save the public sector more than £202 million over the lifespan of the projects. 

Patrick Harvie, minister for zero carbon buildings, 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.”

He added, “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.”