Low Emissions Industry Program FAQs

This program will help manufacturing and mining facilities that reported emissions under the National Greenhouse and Energy Reporting (NGER) Scheme to reduce their emissions. 

The objectives of the Low Emissions Industry Program are to: 

• drive emissions reductions by co-funding projects at manufacturing and mining facilities
• future proof NSW industrial assets by supporting their transition to net zero
• maintain economic resilience and protect jobs in our industrial sectors. 

Decarbonising manufacturing and mining sectors will: 

• help NSW reach net zero by 2050
• improve air quality
• grow and diversify our economy
• create new jobs
• improve our energy security
• provide businesses with more choices to increase their revenue and productivity, produce higher-value products, grow new low carbon industries and reduce emissions. 

We’re providing $40 million to implement abatement projects at NSW manufacturing and mining facilities. Businesses can apply for between $500,000 and $10 million, covering up to 50% of project costs. This will significantly reduce their emissions and strengthen their resilience into the future. 

The Low Emissions Industry Program funding is available to NSW manufacturing and mining facilities that:

• reported emissions under the National Greenhouse Energy Reporting (NGER) Scheme in the 2024-25 reporting year
• have an abatement project that will be fully commissioned and operational by 30 June 2030
• are not oil and gas facilities
• are not a Safeguard facility. 

Read the ‘eligibility criteria’ section in the guidelines for a complete list of all eligibility criteria 

Funding can be used to support detailed design, procurement, construction and commissioning. However, your project must become operational by 30 June 2030. That means we can’t fund design activities if the design does not lead to a constructed project that abates carbon emissions at your facility within this timeframe. 

Please note that feasibility studies, pilots and other activities related to technology development and commercialisation are not eligible for funding. 

The duration of each project depends on its complexity. Projects commence once the funding deed is signed. Your timeline should allow for the assessment period and deed execution. However, all projects must be fully commissioned and operational by 30 June 2030.  

We’ll consider additional rounds based on the market response and results of this funding round.  

Yes. We encourage applications with multi-disciplinary expertise and financial co-contributions. You should highlight the strength of your project’s collaboration in your application. The lead applicant must have operational control of the facility where the abatement project takes place and meet all the eligibility criteria. 

A single abatement project can include multiple components, but abatement must occur at only one eligible facility. Applications for projects that span multiple eligible facilities are not eligible to apply. If you have projects at different facilities, submit separate applications.

Projects that include offsite portions for example behind-the-meter biomethane, where the biomethane is produced at a nearby location, are eligible to apply for funding.

Yes. You can apply for funding if your business has also received other government funding. However, you must clearly demonstrate that your application could not proceed without the Low Emissions Industry Program funding. The total NSW Government funding can’t exceed 50% of your total project costs.

No. Your project must be located and delivered within NSW to be eligible for this funding. 

No. Funding is only available for organisations registered in Australia with an active Australian Business Number (ABN). However, if an international organisation partners with an Australian business with an active ABN that is leading the application, then this application may be eligible. 

We’re aware that NSW or Australia may not have the necessary expertise for your project. You can source expertise outside of NSW if your project benefits NSW. 

You must contribute at least 50% of your project's eligible costs. Higher contributions are preferred and the final funding amount will be determined after your application is assessed.  

Your organisation can provide the minimum 50% contribution itself or through arrangements with partner organisations not affiliated with the NSW Government, such as ARENA or private organisations.

Read ‘Appendix C’ in the guidelines for more information about eligible costs. 

There is no fixed Technology Readiness Level/Commercial Readiness Level threshold. However, projects proven at commercial scale using mature technologies are assessed more favourably. When your application is assessed under Merit Criteria 2, you will be scored on the assurance you provide that the technology is mature and has been successfully demonstrated at an operational facility by you, partners or third parties (in Australia and/or internationally), and your progress toward compliance requirements.

Eligibility is assessed at the facility level. To be eligible, the NSW facility must have been reported under the NGER Scheme for 2024–25 and meet all other program criteria.

• If your organisation reports under NGERS at an aggregated level, you can still apply. However, you must demonstrate that the specific NSW facility is within your NGER reporting boundary (Operational Control) and provide facility-level emissions and abatement information in your application.
• If your facility is below the NGER facility threshold and was not reported under NGERS for 2024–25, it is not eligible for funding under this program

Yes. A project must deliver an emissions reduction without reducing how much your facility produces. Emissions reductions can’t come from reducing production.

Yes. Your project must reduce emissions by at least 1,000 tCO2-e per year. If your project reduces scope 1 emissions but increases scope 2 emissions, the overall result must still be a net emissions reduction of at least 1,000 tCO2-e per year.

Carbon removal projects may be eligible if the project directly reduces the scope 1 and/or scope 2 emissions at an eligible facility and all other eligibility criteria have been met. Please review the funding guidelines before applying.

Yes. These technologies may be eligible if they are behind-the-meter and they meet all other eligibility criteria found in the funding guidelines. 

No. Funding is only available for abatement of stationary (or facility-based) emissions and not transport emissions, except where those transport emission are already counted as scope 1 emissions of the facility under the NGER Scheme. Examples of eligible abatement can include, but are not limited to, on-site diesel vehicles, mobile equipment used in mining/manufacturing, and electrification of non-road registered vehicles.

Yes. Projects located outside the physical boundary of your facility are eligible for funding, provided they result in a direct and verifiable reduction of your facility’s scope 1 or scope 2 emissions. This includes ‘behind-the-meter’ solutions, such as a dedicated biogas plant on an adjacent site, that supplies your facility. You must demonstrate:

• how the off-site project directly abates your facility's emissions profile and results in a net decrease in emissions. If the new biogas facility has its own emissions, these must be subtracted from the total emissions reduced at your facility.  
• that the off-site project is being built specifically to service your facility's decarbonisation and would not have proceeded without LEIP funding.

This type of application and project will be assessed on a case-by-case basis.

You may use the voluntary surrender of LGCs or participation in a PPA as evidence within your application to justify reducing or offsetting an increase in scope 2 emissions caused by your project (for example, if you are switching from gas to grid-connected electric equipment).

However:

• Low Emissions Industry Program funding cannot be used to purchase a PPA, LGCs, Australian Carbon Credit Units (ACCUs), or any other type of offset
• your project's overall emissions reduction cannot be derived entirely from the purchase of LGCs
• the project must involve a permanent physical change or a change in operations at the facility that results in direct abatement.

Projects that use a different emissions intensity of imported electricity, whether through a PPA, LGCs or time-restricted electricity usage, can note this in their merit criteria template spreadsheet (found in the application form) and override the supplied values. Applicants cannot supply their own electricity grid emissions intensity values without further justification.

Yes. We accept joint applications between an eligible facility and other non-emitting entities, provided the lead applicant is the eligible facility, has operational control of the facility where the project takes place and meets all other eligibility criteria as stated in funding guidelines. 

No. Funding can only support emissions abatement at eligible mining or manufacturing facilities in NSW. Please review the funding guidelines to ensure you meet all eligibility requirements before applying.

Yes. Waste heat recovery projects are eligible if the project meets all eligibility criteria found in the funding guidelines.

Yes. Funding can support eligible NSW mining and manufacturing facilities transitioning from diesel to natural gas, provided it reduces an eligible facility’s emissions by at least 1,000 tCO2-e per year, is aligned with a credible decarbonisation pathway, and it meets all other eligibility criteria found in the funding guidelines.

Yes. A behind-the-meter project may be eligible if it demonstrates a reduction in an eligible facility’s emissions by at least 1,000 tCO2-e per year and meets all other eligibility criteria found in the funding guidelines.

If you have questions about your project's eligibility, read the guidelines. If you still need clarification, email us at [email protected] 

You must apply via our online grant management system.  

Read ‘Appendix B’ in the guidelines for detailed information about what you must provide in your application.

This is a competitive grant opportunity. Applications opened on 9 March and closed on 9 June, 11:00pm (AEST). After the submission deadline, applications will be comparatively assessed. At the end of the assessment process, we’ll notify all applicants of the outcome of their application.

Read the ‘key dates and timeframes’ section in the guidelines for more details. 

Yes, you can submit more than one application. If you have more than one project at separate facilities, you must prepare and submit a separate application for each facility to be considered for funding. A single project can have multiple components but must occur at one facility.  

Read the ‘supported activities’ section in the guidelines for more details. 

You need to provide as much supplementary material as possible to support your evidence for each question.

Read ‘Appendix B’ in the guidelines for more information on what evidence is required to demonstrate the eligibility and merit of your project. This is outlined for each eligibility and merit criterion. It includes but is not limited to documentation around: 

• insurance
• finance
• licensing agreements
• emissions data
• technology 
• project planning
• risks and mitigations
• knowledge sharing. 

Department staff can answer questions about the guidelines (but cannot prepare applications) and may update the public FAQs. You may engage external consultants/contractors for project activities (this can be eligible expenditure), but costs of preparing the funding application are ineligible. If you use consultants, disclose any actual or perceived conflicts of interest.

You’ll be notified by email via our grant management system that your application has been received. If you do not receive this notification or have any other queries regarding your application, email us at [email protected] 

We’ll assess your application against the eligibility criteria. If it is eligible, your application will progress to the merit assessment by our independent assessors and a review by the Assessment Review Committee. All criteria are outlined in the guidelines. Eligible applications are competitively evaluated. 

You’ll be notified of your assessment outcome in writing from November after grant applications close and assessment is complete.

Read the ‘key dates and timeframes’ section in the guidelines for more details. 

Yes. If you’re unsuccessful, we’ll advise you in writing on how to seek feedback on your application. 

Yes. If you are successful in your application you can engage partners, contractors or external consultants to help deliver the project and knowledge sharing activities. Eligible expenditure can include external consultants and activities that enable knowledge sharing (e.g., reports, websites, databases). The department can answer questions about the guidelines, but cannot assist in preparing your application.

No. Successful applicants must sign a funding deed before the project begins. Expenditure undertaken prior to signing the funding deed is ineligible and is at the applicant’s own risk.

Calculate emissions reductions by defining the project boundary and estimating baseline (business-as-usual) and project emissions for your facility’s Scope 1 and/or Scope 2 emissions. Abatement is the difference between baseline and project emissions, reported annually.

Use an internationally recognised framework such as ISO 14064-2 (project accounting) or the Greenhouse Gas Protocol, and apply relevant references such as NGER reporting guides and the National Greenhouse Accounts Factors (and any applicable sector-specific guidance).

In your application, provide the most accurate estimate available and support it with evidence: include all input data, sources, assumptions and calculations, plus engineering documentation and a detailed cost breakdown supported by supplier quotes/proposals.

If funded, you will be required to monitor, verify and report emissions and abatement within the project boundary. An independently verified emissions baseline is required before the milestone 2 payment, and monitoring/verification must be undertaken by (or independently reviewed by) a qualified professional (e.g., a registered greenhouse and energy auditor).

Applicants must demonstrate NSW Government funding is essential for the project to proceed, accelerate delivery or increase abatement (additionality). The department assesses this using financial analysis, and considers fuel savings, operating impacts, and revenues from certificates/credits, as well as access to capital, timing and risk profile.

It depends. You cannot change your application once the assessment process has commenced. If your application is successful and your project has changed, we’ll discuss this with you and we may need to reassess your project. 

Businesses can apply for between $500,000 and $10 million, covering up to 50% of project costs. We can consider applications for projects that exceed the maximum grant amount in exceptional circumstances.  

The grant amount depends on the abatement potential and size of your project. If your application is successful, the final funding amount will be determined during the assessment process.

No. Cash contributions can be from any source. However, NSW Government funding from any department cannot exceed 50% of the total eligible costs. All contributions must be confirmed before funding is awarded. Any conditions or requirements of contribution funding must also be compatible with these grants. 

No. Only monetary contributions will be considered. 

No. Only new contributions will be considered. 

You must contribute at least 50% of eligible project costs and cannot source more than 50% of total project funding from the NSW Government. You must disclose any other grants applied for/received for the project; if you intend to seek co‑funding (e.g., ARENA), you must tell the department, and co‑funding may not be possible with all programs. Any certificate/credit revenues and cost savings must be included in your financial case.

Contribution funding should be confirmed by the time you submit your application. If there is likely to be a delay in confirming contribution funds, you should advise us as early as possible via email at [email protected]. We will not enter into a funding agreement unless you have confirmed contribution funding. This may include letters from funding bodies or private investors. 

Read the ‘merit criteria’ section in the guidelines for more details. 

You may seek other (non‑NSW) grant funding, but you must disclose it. The department may not be able to co‑fund alongside all other grant programs.

Projects may generate certificates (e.g., ACCUs, Safeguard Mechanism Credits, ESCs/PRCs). You must include all sources of revenue in your application. The department may include revenue‑recovery terms in the funding deed and may require you to choose between grant funding and generating/selling ESCs/PRCs on a case‑by‑case basis (and Low Emissions Industry Program-funded projects are not eligible for ESC/PRC funding under the Safeguard Acceleration Program).

Yes. The department reserves the right to recover revenue from the sale of credits and/or certificates generated by projects that receive funding from the Low Emissions Industry Program. 

Grant funding is intended to be paid in milestone instalments (indicatively 4) and payments are made only when milestones are met and eligible costs are substantiated. An indicative schedule is: 20% on deed execution/early procurement; 30% after design completion and equipment procurement (including an independently verified emissions baseline); 30% on commissioning and evidence the project is operational (no later than 30 June 2030); and 20% about 12 months after commissioning once abatement reporting and knowledge‑sharing activities are completed.

Applicants must provide a knowledge‑sharing plan describing what will be shared, who it will be shared with, how/when/for how long it will be shared, and how it will benefit other facilities and reduce barriers to adoption. Knowledge sharing is not limited to the plan and can include other activities outside of the plan if requested by the department, like speaking at an event. Successful projects must complete knowledge‑sharing activities and provide reporting (e.g., milestone and annual reports, including annual emissions abatement reporting).

The Department of Climate Change, Energy, the Environment and Water (the department) has legal obligations under the Privacy and Personal Information Protection Act 1998 (NSW) in relation to the collection, storage, access, use and disclosure of personal information. When collecting your personal information, we’ll provide you with a privacy statement at the time of collection that details how this information will be managed in accordance with privacy law. 

The program does not publish a dedicated list of eligible facilities. To be eligible, the facility must be in NSW, be a mining/manufacturing facility that reported under the NGER Scheme for 2024–25, and not be a Safeguard facility (or oil & gas extraction). Applicants should check the Clean Energy Regulator’s published NGER information and confirm their eligibility in the application.