Decarbonisation is the reduction of carbon dioxide emissions through the use of low carbon power sources, achieving a lower output of greenhouse gasses into the earth’s atmosphere. 

The UK public sector is increasingly focused on decarbonisation as an important pathway for combating climate change and as meeting the UK’s 2050 Net Zero target in the way buildings are heated.

The number of public sector decarbonisation tenders has increased significantly in the last six months and in this article, we look at the themes driving the increase, the services being put out to tender, and the buyers and who are winning decarbonisation tenders.

A significant driver for decarbonisation tenders has been the Public Sector Decarbonisation Scheme (PSDS). 

In phase one, just under £1 bn was awarded in funding to public sector entities by the Public Sector Decarbonisation Scheme (PSDS) to help them finance their decarbonisation initiatives.

Phase 2 of the PSDS opens on 7th April 2021 where applicants can apply for grants of up to £5 towards their decarbonisation efforts.

Themes

By analysing all public contracts about decarbonisation ever put out to public tender, we identified the themes in the tender documents.

Key themes are decarbonisation targets, heat decarbonisation options, scenarios, strategies and pathways, as well as a focus on cost-effective decarbonisation.

Tenders for decarbonisation also frequently mention sub-issues such as "industrial decarbonisation" , "heat decarbonisation", "rail decarbonisation", "total decarbonisation", "decarbonisation opportunities", "carbon capture", "clean growth", and "industrial strategy".

What is Being Purchased?

From analysing the decarbonisation tenders, studies, analyses, and advice on how best to decarbonise are in high demand. Buyers are effectively looking for decarbonisation roadmaps that can guide them and inform their stakeholders about plans and initiatives.

Who is Buying?

Decarbonisation is something that touches virtually every single public sector organisation, including central and local government, transport organisations, educational institutions, housing associations, the NHS, and arms-length bodies.

What is Being Procured?

As mentioned above, studies and analysis are in high demand, but for most parts buyers are looking to procure detailed decarbonisation recommendations.

Some organisations have progressed beyond the analysis and recommendation state and are now actively implementing their decarbonisation strategies.

Several procurements are focused on how to how to develop decarbonisation incentives; both incentives aimed at larger actors such as transport companies, as well as incentives towards individuals. 

Who is Winning Decarbonisation Tenders?

So far, companies such as Aurora Energy Research, Carbon Trust Advisory, Connect Public Affairs, Ecofys UK, KPMG, Ipsos Mori, Navigant Europe, Ove Arup & Partners, Perform Green, Ricardo-AEA and University of Oxford have been among the winners.

The breath of industries the award winners so far, highlights the diverse needs of public sector organisations who are seeking to decarbonise require. No doubt needs will only grow as more public sector organisations start their decarbonisation journey.

If your organisation is interested in creating an intelligent pipeline of tenders regarding decarbonisation and related topics, then contact us for a discussion about how Tenderlake can help.