Scotland’s Public Sector Heat Decarbonisation Scheme
The Scottish Government has made £20 million grant funding available within this financial year under Scotland’s Public Sector Heat Decarbonisation Fund for projects to decarbonise their heating systems by replacing them with zero direct emissions systems, and for retrofit energy efficiency measures to support the overall decarbonisation of heat in buildings.
Eligible organisations can apply for funding to support the delivery of their heat decarbonisation and/or energy efficiency project(s).
Get in touch with the team at Co2Target to assess your eligibility. With a proven track record in supporting grant and funding applications, Co2Target can work with you to apply for funding.
Many buildings rely on fossil fuel systems to fulfil heating, hot water, and catering requirements. The energy demand from these requirements is high and requires a strategic and targeted approach to reduce carbon emissions.
Application Assessment
Applications will undergo a quality-based assessment and the highest scoring applications will be approved for funding. The time of submission will have no impact on the assessment outcome, provided that the portal is not closed.
Types Of Decarbonisation Scheme Applications
It is recognised that projects are at differing stages of development in terms of becoming capital ready, in line with the scheme’s eligibility criteria. Therefore, two types of applications will be offered;
Detailed Application
- Single assessment approach
- Capital funding will be confirmed via Grant Offer Letter (GOL) after a successful full assessment of applications
Concept Application
- Two-stage assessment approach
- Capital funding will be reserved based on the Concept Application demonstrating alignment with the scheme criteria
- Capital funding will be confirmed via Grant Offer Letter (GOL) at a later date pending submission of a Detailed Application and successful full assessment
Assessment of applications and allocation of funding will first consider Detailed Applications. Depending on the funding available Concept Applications will then be considered.
Applications will be assessed by Salix and their external contractors around the five following sections: Strategic Assessment, Technical Feasibility, Financial Feasibility, Project Deliverability, and Social Impact.
Decarbonisation Fund Scheme Eligibility
Organisations eligible to apply to Scotland’s Public Sector Heat Decarbonisation Fund scheme include:
- Arm’s length external organisations (ALEOs)
- Local authorities (this includes the local authority estate as well as any educational facilities within their ownership)
- Universities
Please note that the following organisations are currently not eligible for this scheme:
- Public bodies classified by the Office for National Statistics (ONS) as Scottish central government; NHS Health Boards, further education colleges and central government departments (these organisations can access the Scottish Central Government Energy Efficiency Grant scheme instead
- Public corporations
- Private sector organisations
- Registered charities
Scotland’s Decarbonisation Scheme Benefits
The initiative addresses the need to meet Scotland’s 2045 net zero emissions targets, by focusing on decarbonising the way buildings are heated.
The scheme will help reduce direct fossil fuel emissions as well as make public buildings more comfortable.
The scheme enables organisations to think more strategically about their decarbonisation plans and identify which buildings are deemed as a priority across their estates.
Allocation of up to £20m of funding to public sector organisations to be spent within financial year 2023/2024. Applicants will be able to apply for up to £2.5m worth of funding to be utilised across both the 23/24 and 24/25 financial years.
Apply for Scotland’s Public Sector Decarbonisation Scheme
By applying for the Public Sector Decarbonisation Scheme, your organisation can lead the way in sustainability, access financial support, achieve cost savings, contribute to environmental protection, comply with regulations, enhance your reputation, and foster innovation.
Co2 target has a proven track record in supporting grant and funding applications to achieve funding for energy saving solutions, energy management and decarbonisation goals.
Seize this opportunity today. Let us help you apply for the Public Sector Decarbonisation Scheme funding. Get in touch today.

