The fund of GBP20m will be invested in helping government departments go further in reducing their carbon emissions across their estates, realising both carbon and financial savings. Solutions can then be replicated elsewhere in the public sector.

Joan Ruddock, minister of energy and climate change, said: “We know it’s important to show leadership in this area – if we want everyone else to retrofit their homes it’s important government buildings also get some treatment.

“Some of the money will go on energy efficiency, some on smart meters, some on low carbon cars, and some will go on mapping the possibilities of renewable energy on public land – that will be led by the Forestry Commission.”

As reported, all central government departments have been allocated a share of the overall UK carbon budgets that were introduced by the Climate Change Act 2008 and set alongside the Low Carbon Transition Plan.

Central government departments will all be covered by the Carbon Reduction Commitment from next year. An extra GBP51.5m in interest free loans has already been made available for public sector organisations such as central government departments, hospitals, leisure centres and local authorities to invest to take advantage of low carbon technologies.