Energy-intensive businesses can access $25,000 for net zero planning
NSW businesses with substantial energy costs can apply for up to $25,000 to investigate emissions, climate risks and opportunities, fuel switching and other decarbonisation options under the second round of the NSW Government's Net Zero Planning Grant.
For businesses considering major changes to energy use or emissions, deciding where to invest can be a substantial piece of work in itself.
The NSW Government has opened a second round of its Net Zero Planning Grant, offering eligible businesses funding to undertake the work needed to identify and plan their pathway towards lower emissions.
Up to $25,000 is available per successful applicant, covering no more than 50 per cent of eligible project costs.
The $2 million funding round can support work including greenhouse gas inventories, assessments of climate risks and opportunities, emissions reduction planning and identification of cost-saving and fuel-switching opportunities.
Rather than funding the installation of new energy equipment itself, the program is focused on the planning that can inform future investment decisions.
Who can apply
The grant is open to businesses across industry sectors, but there is an important threshold.
Applicants must have an ABN, be registered for GST and have a NSW site address and operations in the state.
They must also spend at least $200,000 a year on energy at a single NSW site, or $500,000 across multiple NSW sites. Purchased fuels can be included in that expenditure.
That makes the program particularly applicable to businesses with substantial energy requirements that need to understand where emissions are generated and which changes could form part of a longer-term decarbonisation program.
The NSW Government says eligible sectors include manufacturing, agriculture, transport and logistics, retail and aged care residential services.
Some businesses are excluded. Commonwealth, state and local government entities cannot apply, nor can facilities covered by the Australian Government's Safeguard Mechanism.
Businesses already required to prepare sustainability reports as Group 1 reporting entities under section 292A of the Corporations Act are also excluded, as are businesses or related entities that have received or will receive funding through another round of the Net Zero Planning Grant.
Funding starts with finding the gaps
The funding is delivered through two stages.
The first provides up to $2,000, covering up to half the cost of assessing where a business currently stands and identifying the actions it needs to take.
That assessment can consider areas including emissions data, targets and governance, as well as finance, reporting and the capability within the business to carry out its plans.
Businesses progressing to the second stage can access up to a further $23,000, again covering up to 50 per cent of eligible costs.
This funding can be used for more detailed work addressing gaps identified during the initial assessment. Depending on the business, that could include preparing a greenhouse gas inventory, developing an emissions reduction action plan or assessing climate risks and opportunities.
Both stages must be undertaken by external specialist consultants selected by the business.
The work is based around the NSW Government's Net Zero Business Guide, which brings a range of national and international frameworks together to help businesses assess their current position and determine their next actions.
Planning can precede larger investment
The grant provides businesses with a way to investigate potential emissions reduction measures before committing capital to them.
NSW DCCEEW Executive Director of Business and Industry Decarbonisation Jenny Merkley said reducing the upfront cost of this work could help businesses identify their options.
“By easing the upfront costs of net zero planning, we're helping businesses identify ways to lower costs, improve productivity, remain competitive and comply with climate change obligations.”
The funding can also be used by certain businesses holding an Environment Protection Licence to develop their first Climate Change Mitigation and Adaptation Plan where this is required under new NSW Environment Protection Authority requirements.
“This grant is about backing NSW businesses that want to invest in their future by helping to develop the plans they need to strengthen resilience, seize new opportunities and bring forward major emissions reduction projects,” Ms Merkley said.
Second round follows 46 funded businesses
The current funding builds on the first round of the program, which awarded $1.3 million to 46 NSW businesses.
According to NSW Climate and Energy Action, businesses supported through the first round used the funding for activities including emissions inventories, net zero targets and assessments of climate risks and opportunities.
The Net Zero Planning Grant forms part of the NSW Government's $22 million Business Decarbonisation Program, which supports businesses with planning and other measures intended to progress emissions reduction.
Applications for Round 2 are being assessed on a rolling basis and are scheduled to close at 5pm AEDT on 30 November 2026, although the round may close earlier if the $2 million funding allocation is exhausted.
For energy-intensive businesses across NSW considering electrification, energy efficiency, fuel switching or other emissions reduction investments, the funding provides a way to undertake the technical planning needed to determine which measures warrant further investment.
