Low Emissions Industry Program NSW

Purpose and Program Overview

The Low Emissions Industry Program is a NSW Government grant designed to help large manufacturing and mining facilities cut onsite emissions while remaining competitive in a net-zero economy. It forms part of the broader Industrial Decarbonisation Initiative, which aims to support industrial sectors to reduce emissions in line with NSW targets of a 70% reduction by 2035 and net zero by 2050.

The program provides a total funding pool of $40 million to co‑fund emissions reduction projects that deliver substantial and ongoing abatement at eligible facilities. Funding is intended to accelerate investment in low‑emissions technologies and upgrades that would not otherwise proceed at the same scale or speed, helping future‑proof NSW industrial assets, maintain economic resilience and protect jobs.

The grant specifically targets facilities that emit up to 100,000 tCO2‑e per year and contribute significantly to NSW industrial emissions, with a focus on projects that can be fully commissioned and operational by June 2030. By co‑investing alongside private capital, the program supports practical, near‑term decarbonisation outcomes rather than early‑stage research.

Key Grant Details

• Grant amount/funding range: From $500,000 to $10,000,000 per project.
• Total funding pool: $40 million for the Low Emissions Industry Program.
• Grant coverage: Up to 50% of eligible project costs (minimum 50% co‑investment by the applicant).
• Status: Open (as at March 2026).​
• Applications open: 9 March 2026.​
• Applications close: Tuesday, 09 June 2026 at 11:00 pm (AEST).
• Eligible industries: Manufacturing and mining facilities in NSW that meet NGER and emissions criteria.
• Required emissions reduction: Projects must reduce facility emissions by at least 1,000 tCO2‑e per year.
• Co‑contribution: At least 50% of the eligible project costs must be co‑funded by the applicant.
• Location: New South Wales, Australia – applicable to facilities operating in NSW.
• Key exclusion: Safeguard facilities and oil and gas facilities are not eligible to apply.

Priority Sectors

The program explicitly targets industrial facilities in the:

• Manufacturing sector.
• Mining sector.

Within these sectors, priority is given to facilities that emit up to 100,000 tCO2‑e per year and can deliver significant, measurable emissions reductions through practical abatement projects. The grant is not open to a broad range of unrelated sectors; it is focused on emissions‑intensive industrial operations in NSW.

Funding Scope

The funding model is a single program stream that co‑funds capital and implementation projects at eligible mining and manufacturing facilities, rather than multiple distinct streams such as feasibility‑only or R&D‑only components.

• Minimum grant per project: $500,000.
• Maximum grant per project: $10,000,000.
• Co‑funding ratio: Up to 50% of eligible project costs covered by the program, with continuous and proven co‑investment of at least 50% required from the applicant.
• Eligible emissions profile: Facilities emitting up to 100,000 tCO2‑e per year.​
• Project timeframe: Projects must be fully commissioned and operational on or before 30 June 2030.

The guidelines emphasise large‑scale implementation and abatement outcomes rather than short‑term studies, with a requirement that projects align with the facility’s strategy for operations at or above current capacity beyond 2030.​

Eligibility Criteria

To be eligible, applicants and projects must meet key requirements, including:

• Applicant type:
  • Must be a manufacturing or mining facility operating in NSW.
  • Must have reported emissions under the National Greenhouse and Energy Reporting (NGER) Scheme for the 2024–25 reporting year.
• Emissions status:
  • Facility emissions must be up to 100,000 tCO2‑e per year.​
  • Safeguard facilities are not eligible.
  • Oil and gas facilities are not eligible to apply.
• Project requirements:
  • The project must deliver at least 1,000 tCO2‑e per year in emissions reductions at the facility.
  • The project must be fully commissioned and operational by 30 June 2030.
  • The project must align with the facility’s strategy for continued operations at or above current capacity beyond 2030.​
• Financial and co‑funding requirements:
  • Applicant must provide at least 50% co‑investment of eligible project costs (as defined in the funding guidelines).
• Jurisdiction and registration:
  • Applicant must operate in NSW; official information indicates this is a NSW Government program administered by the NSW Department of Climate Change, Energy, the Environment and Water.

(The detailed guidelines may also specify standard requirements such as ABN registration, GST status, and insurance; applicants should confirm these in the official funding guidelines.)​

Eligible Activities and Expenses

The program supports practical emissions reduction projects at eligible facilities. Examples of eligible activities include:

• Fuel switching (for example, replacing higher‑emissions fuels with lower‑emissions or renewable alternatives).​
• Kiln and boiler upgrades to improve energy efficiency and reduce emissions intensity.​
• Waste heat recovery systems capture and reuse process heat that would otherwise be lost.​
• Heat pump installations and electrification of heat and other processes.​
• Facility retrofits, including insulation, pipework rebuilds and process changes that reduce energy use and emissions.​

Funding is focused on capital upgrades and implementation that deliver measurable emissions reductions, rather than general business expenses or unrelated operational costs. Applicants should review the detailed list of eligible and ineligible costs in the official guidelines.

Assessment Process

The Low Emissions Industry Program is a competitive, merit‑based grant rather than an automatic entitlement. All eligible applications are assessed against published merit criteria, and only the highest‑scoring projects are recommended for funding within the available budget.

According to NSW Government information, independent assessors review applications against the merit criteria, after which an Assessment Review Committee considers the assessments and makes recommendations on which projects should receive funding. Final decisions are made by the NSW Department of Climate Change, Energy, the Environment and Water, and successful applicants receive a conditional letter of offer.​

Key evaluation themes in the guidelines include project merit, alignment with program objectives (emissions reduction and industrial competitiveness), deliverability, and value for money, although applicants should refer to the official guidelines for the full, detailed criteria and weightings.​

Recent Program Updates

The current round reflects a NSW Government commitment of $40 million specifically to the Low Emissions Industry Program under the Industrial Decarbonisation Initiative. Recent announcements indicate that, alongside this program, the Government has provided a total of $80 million across industrial decarbonisation grants, including the Low Emissions Industry Program and the Renewable Gas Production Program.

Applications for the present round opened on 9 March 2026, with a closing date of 9 June 2026, 11:00 pm AEST, representing a defined funding window for this intake. Applicants should monitor the NSW Climate and Energy Action website and Industrial Decarbonisation Initiative pages for any future funding rounds, clarifications or updates to eligibility and assessment processes.

Application Tips

• Confirm eligibility early: Check NGER reporting status for 2024–25, emissions thresholds, sector type (manufacturing or mining), and exclusion as a Safeguard or oil and gas facility before investing resources in an application.
• Align with program objectives: Clearly demonstrate how the project will reduce emissions by at least 1,000 tCO2‑e per year and support the facility’s competitiveness and long‑term operations beyond 2030.
• Prepare robust project plans: Provide clear technical descriptions, implementation timelines to be commissioned by June 2030, risk management approaches, and evidence of organisational capability to deliver the project.
• Evidence co‑funding: Document financial capacity and sources of co‑investment to meet at least 50% of eligible project costs, including internal approvals or finance arrangements.
• Quantify benefits: Include emissions modelling, energy savings, and broader benefits (such as productivity improvements) to support the merit and value‑for‑money case.
• Follow official documentation: Carefully read the funding guidelines, FAQs and application form instructions, and ensure all required attachments are complete and consistent before submission.

Where to Get Help

Consider consulting a grant specialist like Pattens Group for a personalised eligibility assessment and expert assistance in preparing a strong, compliant and competitive application. Contact Pattens Group to discuss project suitability, documentation requirements, and strategies for maximising merit scores under the Low Emissions Industry Program. For official guidelines, application details, templates, and further information, visit the NSW Climate and Energy Action website pages for the Low Emissions Industry Program and the broader Industrial Decarbonisation Initiative, as well as other relevant NSW Government grant portals. These sources provide the authoritative funding guidelines, FAQs, and online application links.