Following an evaluation of the first three rounds of the HEFCE Revolving Green Fund, a further £34m will be invested.
The RGF provides recoverable grants to help higher education institutions in England reduce carbon emissions and save money.
Since 2008 there have been three rounds of the fund. The next round will be run in partnership with Salix Finance, a company which specialises in providing interest-free loans to public sector organisations for energy efficiency.
In this round of the RGF, higher education institutions can seek funding to implement both small and large-scale carbon-saving projects and, for the first time, water reduction projects.
Institutions can seek funding for small-scale projects between £50,000 and £750,000 and around £2m for large-scale projects.
HEFCE chief executive, Madeleine Atkins, said: “The fund is a very good and effective way to help universities improve their sustainability and achieve financial savings. The review has clearly demonstrated the scheme’s value and I’m happy to announce this next round of funding.”
Salix chief executive Annie Shepperd said: “Salix Finance is delighted to be co-financing this new offer to universities with HEFCE. We know that this will stimulate innovation and leading-edge projects in energy efficiency and we look forward to supporting our universities with their projects. Every project will be a contribution to the UK Carbon Plan, reducing our carbon emissions is worthwhile and urgent.”
The review carried out by Blue Alumni Management Consultants confirms that HEFCE investment in carbon reduction is effective and is achieving significant carbon and financial savings.