Progress on final round of Public Sector Decarbonisation Scheme showcased in new government report
Hundreds of organisations moving ahead with major green upgrades as Salix-led programme reaches final phase
Significant progress on the final round of the Public Sector Decarbonisation Scheme has been highlighted in a newly published government summary report, revealing the substantial impact and scale of the programme as it reaches its concluding phase.
The Summary Report showcases the achievements of Phase 4 of the Public Sector Decarbonisation Scheme, the closing round of the multi-year initiative designed to cut carbon emissions across public sector buildings through low carbon heating and energy efficiency upgrades.
Delivered by our teams at Salix on behalf of the government since the scheme’s inception in 2020, the Public Sector Decarbonisation Scheme has become one of the UK’s most important drivers of public sector decarbonisation.
Phase 4 attracted strong demand, with 383 applications seeking more than £1 billion in funding. Of these, 245 projects were approved, representing 207 public sector organisations. More than £816 million has now been allocated to modernise public buildings, reduce reliance on fossil fuels and support the UK’s net zero goals.
The progress showcased in the government report underlines the transformative role our teams at Salix have played in helping public bodies decarbonise their estates, cut energy costs and deliver on national climate commitments. The impact of these projects will be felt across the public sector for decades to come.
The scale of work now underway, from upgrading heating systems to transforming entire building estates, shows just how committed our partners are to creating a low-carbon future for the communities they serve.
Our director of public sector decarbonisation Ian Rodger said: ““We’re very pleased to see the strong progress highlighted in this final-phase report.
“It reflects the drive and determination of public sector organisations who are leading the way in demonstrating what practical, ambitious decarbonisation looks like on the ground.
“The scale of work now underway, from upgrading heating systems to transforming entire building estates, shows just how committed our partners are to creating a low-carbon future for the communities they serve.”
A new targeted approach delivering high-impact carbon savings
The report highlights that Phase 4 introduced a more strategic and targeted funding model, prioritising applications that deliver the greatest carbon savings at the lowest cost. Using a carbon cost calculator and a whole-building approach to design, applicants were able to optimise their project proposals for maximum emissions reduction.
At Salix, we supported organisations throughout the application process, providing guidance, webinars and tools to help refine submissions and ensure fair, transparent assessment.
This targeted approach is forecast to deliver around 0.57MtCO₂e in annual carbon savings, reinforcing the scheme’s strong contribution to the UK’s legally binding 2050 net zero target and upcoming carbon budgets.
Wide range of low-carbon technologies showcased
The report highlights the breadth of innovation across Phase 4 projects. Organisations are progressing with:
- Heat pumps, including air-source, ground-source and geothermal systems
- Connections to low-carbon heat networks
- LED lighting, insulation, upgraded glazing, ventilation systems, and building management systems
- Solar PV and other renewables
Three innovative geothermal projects are also being progressed under this round.
Strong monitoring and delivery oversight
As showcased in the report, we continue to monitor Phase 4 projects through detailed monthly reporting, tracking financial progress, risk management and key project milestones. These data will feed into the government’s formal evaluation of the scheme to assess outcomes and long-term benefits.
A landmark scheme leaves lasting legacy
The report notes that more than £3.5 billion has been awarded across all Public Sector Decarbonisation Scheme phases since 2020, delivered through more than 1,400 grants. Although ministers confirmed at the June 2025 Spending Review that no further phases are planned, the final round demonstrates the scheme’s enduring success and continuing momentum.
Ian added: “At Salix, we’re incredibly proud to support all of these projects. Each one will make an important difference to the organisation and the communities they support. They demonstrate the ingenuity and resilience across the public sector, and together we’re continuing to make real strides towards the UK’s net zero goals.
“Climate change remains a significant challenge and this programme demonstrates the determination and willingness of the public sector to take a lead in tackling those challenges.
“We look forward to continuing our work to support the public sector over the next three years through Public Sector Decarbonisation Scheme Phase 4 and beyond.”