£10m Decarbonisation Loan Fund for Wales’s Tertiary Education Sector Opens for Applications
Delivered by Salix Finance, the Welsh Government’s Digarbon fund is providing another £10 million in loan funding in this second round.
The objective of Digarbon is to reduce direct carbon emissions from public sector buildings in further and higher education institutions across Wales.
Applications need to include at least one of the following:
- Installation of a low carbon heating system, or
- Installation of fabric first measures, such as building fabric improvements (e.g., glazing or insulation) that enhance thermal efficiency.
Funding is available for a range of eligible measures, including:
- The installation and upgrade of heat distribution systems and emitters, in preparation for a specified low carbon heating system.
- Energy efficiency improvements.
- Renewable energy technologies.
- Electric vehicle (EV) and EV charging infrastructure
A minimum loan of £250,000 (with a fixed interest rate of 2.15%) is available to existing non-domestic buildings owned by eligible Welsh further and higher education institutions. Buildings on long-term leases with at least 10 years remaining can be included.
Institutions of further and higher education in Wales can apply.
To be eligible, an organisation must be:
- A public sector body as defined in the Public Contracts Regulations 2015.
- Receiving 80% of income from educational activities of which commercial and spin-out enterprises are not included.
The funding is available to existing non-domestic buildings owned by eligible Welsh further and higher education institutions. Buildings on long-term leases with at least 10 years remaining can be included.
Only one application is allowed per institution. Multiple measures and buildings can be included in one application provided that the application remains compliant.
Applications are accepted from 22 May to 7 August 2025.
