Skip to content

On 12 June 2025, the UK Government confirmed no new funding will be made available under the Public Sector Decarbonisation Scheme (PSDS). Existing projects awarded funding under Phase 3c and Phase 4 will continue to be supported until completion in March 2027 and March 2028 respectively. The PSDS has provided a necessary incentive to push forward on the net zero carbon road, much as the Feed in Tarifs (FiTs) and Renewable Heat Incentive (RHI) promoted growth in renewables. These latter schemes led to a sustainable industry primary ingrained in the private sector, but what will the future of decarbonisation look like?

What’s at Stake?

The loss of PSDS funding challenges public bodies to rethink their decarbonisation strategies. Without traditional capital support:

  • School, hospital, and civic upgrades could face delays.
  • Innovation may slow due to higher risk profiles.
  • Carbon targets remain, but the route to compliance is less defined.

Yet, the urgency around climate action remains. The 2050 net-zero target—and intermediate local requirements—demand smarter, more agile approaches.

Don’t Lose Momentum:

One of the biggest risk now is inertia as there will be confusion with the loss of a planned approach to public sector decabonisation. Keep momentum by:

  • Embedding carbon literacy
  • Mandating carbon cost in project appraisals
  • Aligning projects with future regulatory drivers (e.g., MEES, net zero procurement, NHS Net Zero Building Standard)

Maximise Existing Assets and Low-Cost Measures

Without major grant funding, focus could turn to lower-cost, high-impact measures, which form the basis of decarbonisation and in the interim period would keep the process going:

  • Energy efficiency: Optimising BMS, lighting upgrades, draught-proofing, heat recovery systems.
  • Behavioural change: Energy awareness campaigns, staff engagement, optimising occupancy use.
  • Asset management: Fine-tuning existing HVAC systems, boiler optimisation, building controls.

Integrate Decarbonisation from the Start

  • Embed sustainability into early-stage design and procurement, rather than treating it as an add-on.
  • Mandate net-zero planning in estate strategies, capital planning, and refurb programme.

Opportunity in Transition

This policy shift is not the end—it’s a turning point. It paves the way for diversified, resilient funding and delivery models:

  • Third-party financing: Including ESCOs and energy performance contracts.
  • Collaborative investment: Community energy partnerships and green funds.
  • Smarter procurement: Embedding decarbonisation into project scopes from day one

How Brookbanks Can Help

At Brookbanks, our multidisciplinary sustainability offering—combining net-zero assessments, energy and sustainability appraisals, and integrated technical consultancy—is designed precisely to navigate this new reality.

Holistic Carbon & Energy Strategies

Our Energy Team delivers legally compliant, context-specific Sustainability and Energy Statements (SES) from planning through to delivery. These go well beyond PSDS, ensuring early-stage insights inform masterplanning, reducing whole-life carbon.

Value-Driven Technical Integration

By weaving together civil, structural, M&E engineering and environmental services, we align sustainability with cost control, value engineering, and delivery programming across major public sector estates. This delivers projects that are both low-carbon and cost-efficient.

Unlocking Alternative Financing

Our commercial and development management teams can help develop ESCO-style and third-party finance models, supporting procurement that transfers technical and performance risk, enabling projects without PSDS capital.

Capacity Building & Governance

We work directly with public sector clients to embed carbon literacy, procurement capability, and governance frameworks—equipping your teams to run decarbonisation programmes in-house or via trusted partners.

Ongoing Performance & Reporting

Through post-implementation monitoring and verification, we ensure your estates deliver promised carbon reductions—providing data, insight, and quality assurance to drive continuous improvement.

A New Playbook for Decarbonisation:

While loss of PSDS funding is a setback, it’s also a moment to reset expectations and build resilience into decarbonisation planning. Brookbanks’ integrated approach, combining engineering, environmental, commercial, and organisational expertise, is well placed to help the public sector pivot to this new paradigm:

Challenge:

  • No PSDS capital
  • Carbon targets still mandatory
  • Fragmented delivery skills
  • Need for financial rigour

Brookbanks Response:

  • Develop finance-ready decarbonisation business cases
  • Embed SES and net-zero assessments upfront
  • Provide multidisciplinary frameworks and commercial oversight
  • Leverage value engineering and procurement excellence

Moving Forward with purpose:

For public sector organisations committed to net-zero, the solution is clear:

  1. Act early – initiate carbon and energy assessments at concept stage.
  2. Reformulate financing – adapt to performance-based and third-party models.
  3. Collaborate across disciplines – tap into Brookbanks’ comprehensive technical and commercial teams.
  4. Build internal capability – capture learning, build confidence and lead change.

Let’s Work Together

At Brookbanks, we’ve helped numerous public sector clients deliver flood alleviation, highways, educational, and civic buildings projects—always with sustainability integrated from day one. Now is the moment to recalibrate, innovate, and build your roadmap to net-zero without PSDS. That’s where our team comes in.

Get in touch to explore how Brookbanks can help you unlock low-carbon investment and deliver decarbonisation that’s both effective and enduring.

Shawn Galliers is Director of Sustainability within Brookbanks’ Land, Development & Communities Group: Shawn.galliers@brookbanks.com

Brookbanks: Your Partner for the New Era

Brookbanks has long supported public sector clients with integrated, sustainable delivery. We’re ready to help navigate this new landscape.

Strategic Carbon Planning

From net-zero assessments to Sustainability & Energy Statements, we ensure carbon considerations shape design from the outset.

Integrated Technical Solutions

Our multidisciplinary teams align sustainability with engineering, programme delivery, and cost control.

Alternative Financing

We structure finance-ready decarbonisation strategies-including risk-transfer models that reduce client exposure.

Capability Building

We equip your teams with the knowledge, frameworks, and governance tools to lead decarbonisation efforts confidently.

Long-Term Performance

With post-delivery monitoring and verification, we ensure that carbon reductions are realised and reported.

Meet our Land and Development Team...

Associate Utilities Director

Danny Lloyd-Jones

Read Profile
Technical Director, Land, Development and Communities Group

Dean Swann

Read Profile
Technical Director, Land, Development and Communities Group

Dr Richard Boyle

Read Profile
Group Director for Land, Development and Communities

Lee Witts

Read Profile
Director of Utilities

Mat Capper

Read Profile
Director of Transportation

Melanie A'Lee

Read Profile
Graduate Environmental Engineer

Paige Fellows

Read Profile
Director of Sustainability for Land, Development and Communities Group

Shawn Galliers

Read Profile

Check Out Our Services...

Civil Engineering Group

Our dedicated Civil Engineering and Infrastructure teams are trusted designers and deliverers of major developments including new towns, major urban extens...
View More

Cost & Commercial Group

Infrastructure/Abnormal/Site-Wide Cost Planning. We have vast experience in structuring, maintaining and managing budgets of hundreds of million pounds, en...
View More

Development Management Group

We are one of the UK's leading partners to blue chip developers, funders and land promoters. From securing planning consents for major house building schem...
View More

Land, Development and Communities Group

Our Land, Development and Communities Group (LDC) has built an enviable reputation across our industry as leading providers of a variety of services with t...
View More

Mechanical and Electrical Engineering Group

Our Mechanical and Electrical Engineering Group has a renowned team of award-winning, energy-centric building services specialists. We are a creative te...
View More

Structural Engineering Group

Our Structural Engineering Group can trace its origins back to its formation in 1984. From the outset it quickly gained a reputation for producing practica...
View More

More News

Spending Review 2025: A Step-Change Moment

June 12, 2025

The 11th June 2025 Spending Review marked a profound shift in the government’s approach to housing, planning, and infrastructure — placing long-term affordability, delivery certainty, and strategic investment at the centre of economic policy.

Read More

Need for Speed – Planning Reform Latest

June 4, 2025

The Government’s Planning Reform Working Paper proposes a series of bold measures to accelerate housing delivery, including stronger local authority powers, penalties for delayed build outs, and new transparency requirements for developers.

Read More