Following on from summer 2024, when £20m was allocated in Round 1, we're thrilled to announce that the Welsh Government has allocated an additional £10 million to Digarbon Round 2; the decarbonisation fund supporting further and higher education institutions in Wales.
This funding, delivered by Salix Finance, is designed to help educational establishments reduce their carbon footprint and achieve net-zero emissions.
Aims and Objectives
The Digarbon - Round 2 Fund aims to support the decarbonisation efforts of tertiary education institutions in Wales. The primary objectives include:
Reducing Carbon Emissions
Supporting projects that significantly lower carbon emissions through heat decarbonisation, energy efficiency, renewable energy, and electric vehicle infrastructure.
Promoting Sustainability
Assisting institutions in their transition to sustainable, low-carbon operations.
Contributing to Net Zero Goals
Aligning with the Welsh public sector’s ambition to achieve net zero emissions by 2030.
Eligibility
Open to further and higher education institutions in Wales that receive more than 80% of their income from educational activities. These include;
- Non-domestic buildings owned by eligible Welsh further and higher education institutions can be included in the application.
- Buildings on long-term leases with at least 10 years remaining can be included.
Applicants that have a long-term lease arrangement for a building from another public sector body (e.g. local government) in which the lease contract allows the cost savings through improved energy efficiency to be passed to the eligible public body.
Please note, that buildings under PPI/PFI contracts are only eligible if the energy efficiency savings are passed to the eligible public body applying for the loan. Applicants must be able to evidence that this has been clearly negotiated with the partners to the agreement and has been agreed with Salix prior to submission of the application.
Window of Opportunity
- Portal opens: 22 May 2025
- Portal closes: 7 August 2025.
- Application assessments: from August to October 2025.
- Outcome: Applicants will be informed of their outcome in October
- Loan agreements: Successful applicants will be issued loan agreements in November 2025.
We can add value by partnering with you to design and develop the project and assisting with the application. Contact us on 0345 072 9529