Digarbon provides loan funding for further and higher education institutions in Wales to support the implementation of heat decarbonisation, energy efficiency, renewable, and electric vehicle and electric vehicle charging infrastructure measures.

For this fund, £10 million has been made available for applications in the 2025/26 financial year.

Funding for the scheme has been provided by Welsh Government to help the public sector meet its ambition to be Net Zero by 2030, and the national target set by the UK government to achieve Net Zero greenhouse gas emissions across the UK by 2050.

Digarbon is available to institutions of further and higher education in Wales only. To be eligible, organisations must also be receiving greater than 80% of income from educational activities of which commercial and spin-out enterprises are not included.

A ‘soft’ sector cap will be applied when allocating funding of which 25% of the available funding will be allocated to the further education sector, with 75% allocated to the higher education sector. These sector caps are ‘soft’ and should there be insufficient successful applications to fully allocate funding to a sector, funding will be allocated to the other sector.

Eligible buildings

1. Non-domestic buildings owned by eligible Welsh further and higher education institutions can be included in the application.
2. Buildings on long-term leases with at least ten years remaining can be included.
3. 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.