Beyond PSDS and LCSF: Sustaining Public Sector Decarbonisation in 2025

At EcoBalance Solutions, we believe that even in constrained funding landscapes, the public sector can continue to lead the UK’s path to Net Zero through strategic planning, practical delivery, and collaborative innovation.

This insight sets out our recommendations on how to sustain climate action momentum without new central government grants, based on real-world delivery expertise and deep knowledge of public sector operations.

Operational Strategies: Doing More with Less

Optimise Building Management Systems
Adjusting temperature setpoints, tightening schedules, and engaging frontline staff can deliver 5–10% reductions in energy use, without capital spend.

Enhance Maintenance to Maximise Efficiency
Every service call is an opportunity to reduce carbon. Clean, balance, insulate, upgrade lighting, gradual improvements build impact over time.

Use Data to Drive Decisions
Review smart meter data and carry out simple energy audits. Anomalies often reveal behaviours or faults that can be addressed immediately and at low cost.

Pilot Before Scaling
Try small installations of heat pumps, solar PV or battery storage. Use pilots to build evidence, technical understanding, and internal buy-in before future scaling.

Planning & Governance: Making Climate Core

Embed Net Zero in Local Policy
Ensure climate targets are hardwired into procurement, asset strategy, and capital investment frameworks. Delivery happens most reliably when embedded into everyday systems.

Develop or Refresh Action Plans
Use support from Local Net Zero Hubs or peer networks to map a clear pathway across your estate. A decarbonisation roadmap prepares you for future funding and informs internal investment.

Plan for Future Compliance

Many building regulations are tightening. Proactively phasing out fossil fuels or upgrading insulation avoids non-compliance risks and saves cost in the long term.

Establish Strong Internal Governance
Designate senior climate champions. Set up working groups, report regularly to leadership, and make climate a standing item, not an optional extra.

Finance: Unlocking Capital and Creativity

Explore Energy Performance Contracts
Partner with an ESCO to implement upgrades funded through guaranteed energy savings. No grant required, just strong monitoring and verification.

Leverage Alternative Finance
Climate loans, green finance vehicles, and infrastructure banks increasingly offer terms aligned with local authority and NHS decarbonisation goals.

Engage the Community
Community climate bonds or co-owned renewables projects can unlock capital while deepening public engagement and legitimacy.

Align with Capital Cycles
Use asset renewal as an opportunity to include carbon reduction. For example, a new roof should come with insulation or PV, and a new boiler should be part of a heat transition plan.

Stay “Bid Ready”
If you applied to PSDS Phase 4, deliver strong results. If not, keep a bank of shovel-ready projects and an updated decarbonisation plan ready for the next funding opportunity or in-year underspend.

People and Partnerships: Building Lasting Capacity

Train and Upskill
Without LCSF, internal capacity becomes even more important. Training caretakers, estates officers, and operational leads builds resilience and self-sufficiency.

Communicate Internally and Externally
Be transparent about constraints, but celebrate progress. Share data, case studies, and cost savings to maintain stakeholder confidence.

Collaborate Across the Sector
Work with other councils, NHS trusts, and housing providers to share procurement, aggregate demand, and co-fund shared infrastructure.

Bring in the Private Sector, Strategically
Work with energy service companies, fleet providers, or infrastructure investors, but ensure partnerships are structured for public value.

EcoBalance’s Perspective

As a consultancy built from public sector experience, EcoBalance Solutions understands the impact of funding uncertainty. But we also know the ingenuity, dedication, and opportunity that exists within councils, trusts, and local institutions. Climate leadership isn’t about waiting for the next pot of money, it’s about finding ways to act anyway.

We help public sector teams navigate the current landscape by:

• Mapping realistic and phased Net Zero strategies

• Designing delivery models that align with internal budgets

• Identifying finance opportunities beyond traditional grants

• Building internal capacity and resilience

• Capturing impact to strengthen the case for future funding

While central schemes may pause, the climate clock does not. The UK public sector remains on the frontline of change, and with the right support, it will continue to lead.