The Carbon and Energy Fund’s (CEF) Steven Heape argues that while the NHS’s Net Zero ambitions are achievable, progress now hinges on pragmatic financing, tariff reform, and the courage to embrace transitional technologies that make decarbonisation both technically and economically viable.
The NHS has made bold commitments: to achieve Net Zero for directly controlled emissions by 2032 and system-wide by 2040. These targets are rightly ambitious; the scale of the health estate makes the NHS one of the UK's largest single contributors to public-sector carbon emissions.
Since 2020, the Public Sector Decarbonisation Scheme (PSDS) has provided £1.5 bn of capital support for electrification and energy efficiency. Delivered via Salix Finance, this scheme has been transformational. It has allowed Trusts to deliver pioneering projects, such as large-scale heat pump conversions, façade upgrades and early geothermal pilots. But with the funding now withdrawn, we face a daunting question: how do Trusts continue the journey to Net Zero without capital support or revenue funding to soften the cost burden?
Even during the PSDS era, many Trusts hesitated to move to electrified heating. The reason was simple: the economics of heat in hospitals do not add up. Electricity is, on average, five times more expensive than gas. For a typical hospital consuming 20 million kWh of heat per year, that difference is prohibitive. With no new capital streams and revenue budgets already under severe pressure, it risks becoming an impossible challenge. And yet, 'doing nothing' is not an option.
Log in or register FREE to read the rest
This story is Premium Content and is only available to registered users. Please log in at the top of the page to view the full text.
If you don't already have an account, please register with us completely free of charge.
