Net Zero Planning Grant NSW – Round 2

Purpose and Program Overview

The Net Zero Planning Grant is an NSW Government initiative administered by the Department of Climate Change, Energy, the Environment and Water (DCCEEW) under the NSW Climate and Energy Action program. Round 2 of the grant provides eligible New South Wales businesses with funding to strategically plan and accelerate their transition to net zero emissions. The program supports businesses to build internal capability, assess climate-related risks and opportunities, and develop clear, actionable pathways towards lower-carbon operations.

Round 2 makes available a total funding pool of $2 million. The grant sits within the broader $22 million Business Decarbonisation Program, which helps NSW businesses take practical, low-cost steps towards decarbonisation. Funded activities are structured around the Net Zero Business Guide, a framework covering nine elements of net zero planning, including strategy, governance, data, targets and reporting.

By subsidising the cost of external specialist advice, the grant reduces the upfront barrier many businesses face when starting or advancing their net zero journey. It is intended to strengthen business resilience, support integration of climate risk into core planning, and improve competitiveness as global markets shift towards lower-emissions operations.

Key Grant Details

• Grant amount: Up to $25,000 per eligible applicant
• Co-funding rate: Covers up to 50% of eligible project costs
• Application period: Applications for Round 2 are currently open and close at 5:00 pm AEDT on 30 November 2026, or earlier if the funding pool is exhausted
• Eligible business types: Commercial and industrial businesses across a broad range of sectors, provided energy spend thresholds are met
• Co-contribution required: Yes — applicants must fund the remaining share of eligible project costs
• Location applicability: New South Wales only; businesses must maintain a physical site address and operations in the state

Priority Sectors

The funding guidelines do not restrict Round 2 to specific priority sectors. Reporting on the grant indicates it is being accessed by businesses across manufacturing agriculture, transport and logistics, retail, and aged care, among other commercial and industrial sectors. The grant is broadly open to any eligible NSW business that meets the energy spend and registration criteria, regardless of industry classification.

Funding Scope

The grant is delivered in two milestone-based payments:

• Milestone 1 (planning phase): Up to $2,000, covering up to 50% of costs, over an approximate six-week period. This stage identifies the key actions needed to advance the business’s net zero journey and determines which elements of the Net Zero Business Guide to prioritise.
• Milestone 2 (implementation phase): Up to $23,000, covering up to 50% of costs, over an approximate 18-week period. This stage delivers the detailed work scoped in Milestone 1, such as developing a greenhouse gas inventory, a net zero action plan, or emissions reduction targets.

Combined, the two milestones make up the maximum $25,000 grant amount per applicant. There is no separate funding stream structure beyond these two milestones.

Eligibility Criteria

To qualify for Round 2 funding, businesses must meet the following mandatory requirements:

• Hold an active Australian Business Number (ABN) and be registered for GST
• Maintain a physical business site address and operations in New South Wales (government entities are not eligible)
• Spend at least $200,000 annually on energy bills at a single NSW site, or a combined $500,000 annually across multiple NSW sites and operations (this includes all purchased fuels)
• Provide evidence of annual energy expenditure, with energy bills no more than two years old at the date of application
• Not be a designated Safeguard facility under the federal Safeguard Mechanism
• Not have previously received a Net Zero Planning Grant under Round 1

Eligible Activities and Expenses

The grant subsidises the cost of engaging external specialist consultants for activities including:

• Developing a comprehensive greenhouse gas emissions inventory
• Conducting climate-related risk and opportunity assessments
• Setting emissions reduction targets and formulating a net zero action plan
• Investigating fuel switching and industrial decarbonisation pathways
• For businesses holding an Environment Protection Licence, developing a first Climate Change Mitigation and Adaptation Plan to meet NSW Environment Protection Authority requirements

Activities must align with one or more of the nine elements of the Net Zero Business Guide: strategy, governance, people and capability, data, targets, net zero action planning, finance, stakeholder engagement, and reporting.

Assessment Process

Round 2 of the Net Zero Planning Grant is a non-competitive, entitlement-based program assessed on a rolling, first-come, first-served basis. Applications are reviewed as they are received against the published eligibility and assessment criteria, rather than compared against one another in a single competitive round. Independent technical and probity advisors may assist the assessment team. Because the $2 million funding pool is finite, applications may close before the published deadline if funding is exhausted.

Recent Program Updates

Round 2 represents a substantial expansion of the program compared to Round 1. The original grant offered a $1.5 million funding pool with a maximum $30,000 grant at up to 75% co-funding, delivered as Milestone 1 (up to $4,000) and Milestone 2 (up to $26,000). Round 2 has since increased the total funding pool to $2 million while adjusting the grant structure to a maximum of $25,000 at up to 50% co-funding, split between a $2,000 Milestone 1 and a $23,000 Milestone 2. Businesses that received funding under Round 1 are not eligible to apply for Round 2.

Application Tips

• Confirm energy spend meets the $200,000 (single site) or $500,000 (multiple NSW sites) annual threshold before applying, and have supporting bills ready that are no more than two years old
• Prepare ABN and GST registration details in advance to avoid delays
• Engage an external specialist consultant early, since the grant funds their services rather than internal staff time
• Apply as early as possible, given the program is assessed on a rolling basis and the funding pool is limited
• Align the proposed scope of work with the nine elements of the Net Zero Business Guide to strengthen the application
• Clearly demonstrate how the funded activity will support measurable progress towards net zero, such as an emissions inventory, risk assessment, or action plan

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 us today and get connected with Australia’s best grant specialist, boasting over 35 years of experience in the industry and a 100% success rate. For official guidelines, application details, templates, and further information, visit the official website of the Net Zero Planning Grant and other associated Australian government websites.