New £30m fund for low carbon projects in Scotland

A major fund to create low-carbon heating infrastructure is now open for applications.

The Scottish Low Carbon Heat Funding Invitation has made £30m available to businesses and organisations for innovative solutions to heat buildings.

The funding is part of a wider Low Carbon Infrastructure Transition Programme (LCITP) being delivered by the Scottish government in partnership with Highlands and Islands Enterprise, Scottish Enterprise, Scottish Futures Trust and specialists in the sector.

The support will provide financial assistance for up to 50% of the total eligible costs of a capital project, up to a maximum of £10m, where that project can demonstrate innovative and low carbon ways of heating buildings, including heat pumps, as well as supporting industrial projects focused on reducing emissions.

Scotland’s energy minister Paul Wheelhouse said: “It’s estimated that Scotland’s homes are responsible for the emission of six million tonnes of harmful carbon dioxide into our atmosphere every year, 15% of all emissions.

“In order to meet Scotland’s ambitious proposed climate change targets, we estimate that nearly every Scottish home - unless already on a renewable heat supply - will need to have a change to its heating system by 2045, if not before.

“The Scottish government is already making inroads to that target, by committing to ensuring that all new homes use renewable or low carbon heat by 2024, but we also want to create an environment where existing homes transition to renewable solutions as well. 

“The problem is too big for the government to tackle on its own, so we are tapping into the significant expertise and talent that exists within Scotland - giving people the means to take the initiative and effect change through deployment of innovative, low carbon approaches to heating.

“By taking this approach we’re also supporting jobs, building skills, and ultimately creating end products with an environmental and social benefit.”