New Carbon Emissions Reductions Fund helps charity initiatives that reduce climate change impact of energy use


Ofgem Energy Industry Voluntary Redress Scheme has launched a new Carbon Emissions Reduction Fund, which will support charity initiatives that reduce the climate change impact associated with energy use.

Managed and delivered by Energy Saving Trust, the Energy Redress Scheme collects voluntary payments from energy companies that may have breached rules to compensate the effects on energy consumers that may have been affected.

Charles Hargreaves, Deputy Director of Enforcement at Ofgem, commented on the announcement: “We want to support consumers to use greener, affordable forms of energy in order to hit the UK’s net zero emissions target.

“That’s why Ofgem is making a share of supplier redress payments available to a new fund to support low carbon technologies which will be managed by the Energy Saving Trust as part of our voluntary redress scheme and will help consumers reduce their carbon footprint.”

The Carbon Emissions Reduction Fund aims to benefit all domestic energy consumers, not only those in vulnerable situations.

The first round of the Carbon Emissions Reduction Fund contains £1 million and is open to charities in England, Scotland and Wales.

The fund awards grants between £50,000 and £500,000 to projects that:

  • demonstrate measurable and lasting reductions in the carbon intensity of energy end use and accelerate the transition to net zero carbon
  • show a realistic prospect of delivering broadly replicable benefits to existing and/or future energy consumers
  • are proven to be efficiently managed throughout the project

The closing date for applications is 5pm on Thursday 11 February 2021.

Charities that are registered with the Energy Redress Scheme and have passed the due diligence process are eligible to apply.

Those interested in applying are encouraged to register by Thursday 14 January 2021.

More information about the funding is available on the Energy Redress Scheme website.