NSW Low Emissions Grants Available

1 April 2026

Background

The NSW Government has launched a $40 million Low Emissions Industry Program targeting decarbonisation projects at manufacturing facilities. The program is designed to co-fund emissions reduction projects that can be deployed quickly and at scale, helping industrial facilities reduce their carbon footprint while maintaining economic resilience and jobs. Grants range from $500,000 to $10,000,000 per project (larger projects may be available in exceptional circumstances).

This is a significant co-funding opportunity for members with NSW operations — the AFGC encourages members to review the eligibility criteria and assess whether your facilities may qualify.

Eligibility

To be eligible, applicants must be:

NSW-based mining or manufacturing facilities
Reported emissions under the National Greenhouse and Energy Reporting (NGER) Scheme for the 2024–25 financial year
Not a Safeguard facility (Safeguard facilities are explicitly excluded)
Eligible projects must meet all the following criteria:
Reduce scope 1 or scope 2 emissions by at least 1,000 tCO2e per year
Commence by 1 January 2027 and be fully operational by 30 June 2030
Applicant must contribute at least 50 per cent of eligible project costs
Align with the facility’s strategy to operate at or above current capacity beyond 2030
Emissions reductions must not result from decreased production or safety measures
Reductions must exceed any applicable legislative requirements
Grant funding must be required to proceed, speed up, or increase the scale of the project

Eligible expenditures include:

Plant and equipment (full delivered cost, less applicable GST credits)
External consultants directly related to the project
Labour — salaries, wages and on-costs for staff employed on the project
Contract preparation costs
Legal, audit and accounting costs directly related to the project
Administrative expenses — travel, communications, computing, accommodation
Licence fees and intellectual property purchase costs
Knowledge sharing activities — databases, websites, applications

Example project types

The following types of projects may be eligible for funding:

Fuel switching projects
Kiln and boiler upgrade projects
Waste heat recovery projects
Heat pump installation projects
Facility retrofits — including insulation, pipework rebuilds and process changes

Further information is available on the NSW DCCEEW Low Emissions Industry Program webpage. Applications are due by 9 June 2026.

Staff from Essential Energy’s Commercial Development team have generously offered to assist AFGC members in their applications by providing a ‘pre-feasibility study’ of potential projects. Please contact rick.umback@afgc.org.au if you would like an introduction.

Who you can talk to

Should you require any further information, please contact Rick Umback at

rick.umback@afgc.org.au.

Scott McGrath
Director, Stakeholders, Engagement & Policy