If you’re working in a college or university in Wales and want to reduce your carbon emissions, now is the time to act. Digarbon Round 2 has launched, offering £10 million in low-interest loans to help institutions decarbonise their estates through practical, long-term changes.
C3 Group can help you navigate the process, maximise your funding potential, and deliver a long-term impact, whether you’re just starting or already developing a decarbonisation project.
What is Digarbon?
Digarbon is a loan scheme that Salix Finance runs on behalf of the Welsh Government. It’s designed to help public sector bodies replace outdated fossil fuel heating systems with cleaner, low-carbon alternatives.
This round focuses exclusively on the education sector, especially colleges and universities, supporting Wales’ ambition to become a net zero public sector by 2030.
The loan carries a fixed low interest rate of 2.15% and must be repaid by October 2049, making it a manageable option for institutions looking to future-proof their estate. Digarbon supports projects that deliver measurable, lasting carbon savings.
Do You Qualify for Digarbon?
Your institution must be based in Wales and receive at least 80% of its income from education-related activities. You can apply whether you own your buildings or lease it on a long-term basis. Some PFI buildings may also be eligible, provided the project’s benefits stay with the applicant.
Each institution can submit one application, but that application can cover multiple sites – provided the work forms a single, integrated project with measurable carbon reduction outcomes.
Salix expects to see evidence that the work wouldn’t happen without loan support and that the investment will result in direct, quantifiable carbon savings. That means planning is essential – both to meet the technical requirements and to ensure your project is delivery-ready.
What Type of Work Qualifies?
The heating system being replaced must be at the end of its life to be eligible for Digarbon funding. Salix requires evidence that the replacement is necessary and timely.
Projects must also include at least one of the following core elements:
- Installation of a low-carbon heating system (e.g., heat pumps)
- Fabric-first energy efficiency upgrades (e.g., insulation, glazing)
Additional elements like LED lighting, solar PV, or EV charging can be included, but only if they’re part of a broader heat decarbonisation project. These elements won’t qualify on their own.
Key Dates for Digarbon Round 2
- Applications open: 22 May 2025
- Deadline to apply: 7 August 2025
- Salix assessment period: August-October 2025
- Loan agreements issued: November 2025
- Project completion deadline: March 2029
With only two months available to gather data, finalise designs, and model carbon savings between applications opening and closing, early preparation is essential to maximise your chances of success.
How C3 Group Can Support You
At C3 Group, we specialise in helping public sector organisations develop practical, fundable sustainability projects. From initial feasibility assessments to full application support, we’re here to help you identify the proper carbon-saving measures for your estate and build a compelling proposal that meets Salix’s criteria.Our support includes feasibility studies and site assessments, carbon savings modelling, full bid writing and submission, and ongoing support from planning to delivery. We’ve successfully supported schools, NHS trusts, and local councils – and now we’re ready to help the Welsh education sector maximise this funding opportunity.
Take Action Today
Digarbon Round 2 is a real opportunity to make a meaningful impact – lowering your emissions, reducing running costs, and creating better environments for students and staff for years to come. If your institution is eligible, don’t wait. Contact us today to speak to a sustainability consultant and get started on your application.
