The NHS has established a clear and ambitious decarbonisation roadmap to achieve net zero emissions by 2040 for emissions they directly control, and 2045 for supply chain emissions.
This transformation comes at a time when the NHS is also striving to deliver substantial cost savings, making the dual challenge of financial efficiency and climate responsibility even more pressing.
Every NHS Trust has a vital role to play in in this journey, developing green plans and implementing local actions to cut carbon, drive sustainability, and support healthier communities across the country.
To support this transition, the government launched the Public Sector Decarbonisation Scheme (PSDS) in 2020. The scheme provides grant funding to help NHS Trusts and other public sector bodies cut emissions by upgrading gas-fired heating systems, improving insulation, and installing renewable technologies.
Hundreds of NHS sites have already benefited - reducing emissions and energy costs. However, the Chancellor’s recent Spending Review announced that no new PSDS funding will be available beyond March 2028, which means Trusts will need to think creatively to maintain decarbonisation efforts in the long term.
Projects already granted funding will continue, but with support winding down, Trusts are facing a challenge: how to continue progressing towards achieving their net-zero targets, while also dealing with rising operational costs and limited access to capital.
The challenge that our NHS Trusts face is that the route to net zero requires upfront investment, and without PSDS, Trusts will have to look inwards at already tight budgets.
Many hospitals operate ageing energy systems that are inefficient, carbon-intensive, and expensive to run.
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