Question to the Department for Business, Energy and Industrial Strategy:

To ask Her Majesty's Government what plans they have to fund combined heat and power projects for public bodies, such as the NHS; and whether any such funds would be made available via government agencies, such as Salix Finance.

The Government is committed to achieving net zero greenhouse gas emissions by 2050. On the path to net zero, the Net Zero Strategy and the Heat and Buildings Strategy committed to an aim of reducing emissions from public sector buildings by 75% by 2037. We are clear that the continued use of fossil fuels for energy is not compatible with that ambition.

Combined heat and power installations can encompass a range of different generation technologies and are fueled by fossil fuels or renewable sources such as biomass. Whilst those that operate using fossil fuels are not supported under the Public Sector Decarbonisation Scheme, there are a number of existing support mechanisms in place for CHP that meets defined efficiency thresholds, including environmental tax exemptions such as the Climate Change Levy. The Government continues to look to develop policies to support the decarbonisation of combined heat and power in the future and there is currently a live Call for Evidence on the pathway to decarbonisation for CHP that runs to 20 December 2021.