Improving knowledge of decarbonisation funding

An optimistic outlook

There is clearly an appetite for getting this right. The topic of decarbonisation funding attracted the biggest audience for Pagabo Live to date, reflecting people’s drive to understand how to tackle challenges head on.

Jose provided a realistic view of the importance and challenges of meeting net zero targets – highlighting that hitting 2050 goals in the UK is still doable with the right knowledge, collaboration and approach. An aspect to highlight is the 2050 target for net zero in the UK. That date is important, but what is even more important is the transition to be made. It’s not just the end point – it’s the whole journey that needs focus and is something Jose has explored in-depth previously here.

Decarbonisation isn’t just the things we do, it’s the way we do things, with Jose and the panel exploring a number of key areas to set the scene before diving into the funding elements. This included a focus on refurbishment and new-build approaches, and the pros and cons for each.

All agreed there is no one single solution and that a large element is understanding the end goal. What are we looking to optimise? What does net zero mean to the client – and what are the factors affecting that?

It’s clear there needs to be an increase and focus on refitting buildings, especially when considering around 80% of buildings that will make the difference to net zero targets already exist. For refurbishments, it can of course be really challenging to get the balance right between outputs and reductions.

The argument remains that it’s better to refit a building all in one go where possible. However, it may well be that some elements are more disruptive than others, so a hybrid temporary solution or phased approach that minimises disruption could in some cases offer a better route forward. Not to mention, a phased approach may be needed from a capital point of view for many.

Meanwhile, the whole aspect of cost isn’t just capital. Everything should be calculated with a whole life, cradle to cradle approach covering build, maintenance and end of life, allowing us to strategise decisions for clients accordingly.

Improving decarbonisation funding knowledge

44% of the Pagabo Live viewers detailed themselves as currently looking for decarbonisation funding for upcoming projects – with a further 38% expecting to be in that position in the near future. Meanwhile, 78% of the same audience reported themselves as having low or almost no knowledge of how to access decarbonisation funding.

It’s clear this is a complex and confusing landscape to navigate, so we have an important position as consultants to help our clients understand their requirements and how best to achieve their goals. And funding plays an ever-more important role, especially for the public sector.

There are a number of routes available, both regionally and nationally. Some of the most well-known routes are through Salix Finance, which operates the Low Carbon Skills Fund, which Jose announced its Phase 5 had been launched just a few hours before this discussion. Its other key offering is the Public Sector Decarbonisation Scheme, for which Pick Everard, given our full design and management services offering can provide a one-stop shop solution – read more here.

Elsewhere, there are funding pots available on a regional scale such as through combined or local authorities, charities or Net Zero Hubs offering grants. Central government continues to bring forward initiatives and is an area to stay informed on as we approach a general election. One of the biggest schemes to date has been the Social Housing Decarbonisation Fund, and the more recently announced (as yet unnamed) retrofit scheme for local authorities.

Jose and the wider panel discussed how to form a strong business case for funding, by including:

• Focus on the wider context of actions – collaborating across multiple departments and detailing the co-benefits across the board from any project
• Quantification and demonstration of the benefits to be created – and what they mean
• Plans for measuring and verifying benefits for accountability
• Consideration for reputational elements – either directly or indirectly from creating negative impacts elsewhere

Does accounting for net zero cost more?

The first step in answering this question is to consider what cost we are talking about. In all cases, we should be looking at whole-life costs covering capital construction and operational whole-life. For many clients however, the focus is largely on the financial cost over anything else, and so it is the role of consultants like us at Pick Everard to bring in the wider picture.

There is a fine balance to strike between how much capital cost a client can afford, and whether that gets the right solution from an environmental perspective. Some sectors are becoming more hyper-sensitive to the risk of stranded assets in a landscape of changing legislation and the importance of their own Scope 3 emissions and carbon balance sheets.

So, the short answer to whether accounting for net zero costs more is another question: What is the cost of not doing so?

Once we have the true understanding of what not acting will mean, it will be clear to see that overall net zero carbon does not cost more on the whole.

Watch back the full episode of Pagabo Live here, and if you are looking for support with your upcoming decarbonisation projects or accessing and maximising funding options, please get in touch with our sustainability team today.