"There is a clear lack of knowledge, confidence, and planning, which prevents a unified approach, from defining net zero strategies through to securing funding and delivering impactful projects"
- Tom Retallick - Pagabo
Only 12% of professionals in the social housing sector believe the UK government’s goal to reduce emissions by 81% by 2035 is achievable. This is according to a new white paper from public sector procurement specialist Pagabo, which examines views on decarbonisation across the public sector.
The report draws on a nationwide survey of representatives from local authorities and other public bodies. It found that 29% of respondents think the UK needs a more realistic timeline, while 47% do not believe the target is achievable at all, and 12% remain undecided.
The white paper, Driving Decarbonisation in the Public Sector, includes insights from respondents across England, Wales, Scotland, and Northern Ireland. Participants came from central and local government, the NHS, education, housing, and emergency services.
Among over 170 respondents, key findings include:
13% say their organisation lacks a strategy, action plan, or formal commitment to net zero
54% feel their organisation has made meaningful progress on decarbonisation in 2024/25
54% believe the government is not doing enough to meet the UK’s net zero goals, particularly in local government, social housing, and education
Funding is the biggest challenge, cited by 80%, followed by competing priorities (71%), complexities of existing buildings or estates (64%), perceived costs (47%), and changing policies or regulations (43%)
Of the 56% who applied for decarbonisation funding, 69% experienced difficulties during the application process
Energy-saving lighting is the most common measure being implemented (73%), followed by solar panels (63%) and renewable energy sources (51%)
75% say that cost outweighs sustainability, most or all of the time
“Some of the findings from our survey will not be of great surprise to many, especially regarding the biggest challenges the public sector faces around decarbonisation," explains Tom Retallick, senior decarbonisation framework manager at Pagabo. "For example, accessing and maximising funding at the right point has been a talking point for a long time. The survey reveals more detail behind this, such as almost half of the people being unclear on the funding options available to them, or 35% reporting that secured funding was simply not sufficient to cover required works.”
He added, “Despite those challenges, 80% of people are still planning on seeking further funding to support their decarbonisation projects, showing the need remains high. With 84% of our respondents detailing that government decisions have a medium or high impact on their organisation’s approach to decarbonisation, it’s clear that the public sector needs support. There is a clear lack of knowledge, confidence, and planning, which prevents a unified approach, from defining net zero strategies through to securing funding and delivering impactful projects.”
Retallick continued, “We believe some of the complexity associated with decarbonisation is accurate, while much of it is assumed. However, from local authorities and NHS trusts to educational institutions and central government bodies, the responsibility to transform estates into low-carbon, energy-efficient assets is urgent and profound. Turning this ambition into action demands more than policy. It requires robust, flexible, and expertly guided procurement pathways that empower progress at pace.”
The survey, conducted by Surveys in Public Sector in partnership with Pagabo, included respondents from a broad range of job functions. Its purpose was to explore how far the UK public sector has progressed on net zero, identify obstacles, and determine how public bodies can adopt a strategic approach to decarbonisation.
Karen Carter, director of national delivery at Pagabo, said, “Driving Decarbonisation in the Public Sector emphasises the need for expert contractors and consultants to engage early. It also shows action is needed immediately to overcome challenges that have held the public sector back for too long.”
She noted, “Many ‘easy wins’ have already been secured by public sector organisations, with 73% rolling out measures like energy-saving lighting. The next steps for many involve larger or more technical measures, such as new energy systems or fabric improvements. The challenges outlined in our white paper will not disappear overnight, and to make real progress, these schemes must move forward.”
Carter concluded, “While our findings assess the current state of the public sector, our real interest lies in realising progress that is more achievable than many stakeholders currently believe.”
