Ambitious Welsh Government green scheme is launched to help tackle climate change

A green scheme aimed at further and higher education has been launched today aimed at helping Wales meet its 2030 net zero ambition.

Digarbon, the decarbonisation fund for the tertiary education sector in Wales, has been launched by the Welsh Government with full details released including criteria.

It will provide £20m of loan funding to the sector aimed at supporting heat decarbonisation, energy efficiency, renewable, and including electric vehicle and electric vehicle charging infrastructure measures.

This funding, which will be delivered by government delivery partner Salix and has been provided by Welsh Government to help the public sector meet its ambition to be net zero by 2030. 

Salix Chief Executive Emma Clancy said: “The new loan programme will enable the education sector to implement further low carbon solutions, reduce  heat demand which is fundamental to delivering our net zero goals.

“Our Wales team cannot wait to get started and we’re looking forward to talking to the sector about the very many innovative solutions that can be applied through this funding.”

Digarbon is available to existing non-domestic buildings owned by eligible Welsh further and higher education institutions and buildings on long-term leases with at least 10 years remaining can be included.

Organisations will be able to apply once the application portal opens in July. The portal will close to applications in August.

Overall, the scheme is designed to help meet the national target set by the UK government to achieve net zero greenhouse gas emissions across the UK by 2050. 

Emma added: “Every day at Salix we have one mission in mind and that is to tackle climate change and to meet our net zero targets.

“We can only do this by working together, combining our resources and encouraging governments and businesses as well as all of us to take action today.”

Digarbon at a glance: 

• The Digarbon scheme will encourage carbon heat solutions, enhancing energy efficiency and heat demand, whilst increasing renewable energy capacity.
• It is designed to be used alongside other funding from the Welsh Government available to Higher and Further Education institutions for example, the Wales Funding Programme, also delivered by Salix. 
• A fixed interest rate at the current government borrowing rate of 2.05% will be applied on the loan and the full loan including all interest must be fully repaid to Salix by 31 October 2048.
• Digarbon is available to institutions of further and higher education in Wales only. Applicants must also be receiving 80% of income from educational activities of which commercial and spin-out enterprises are not included.
• The loan has a minimum application value of £250,000 and there is no maximum application size. Only one application is allowed per institution.