High Emitting Industries grant

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What this article reported

Reducing industrial emissions for NSW

Manufacturing and mining facilities in NSW contribute about 30% of our state's total emissions. This includes almost 60 facilities that emit more than 90,000 tonnes of carbon dioxide equivalent (tCO2-e) a year.

Accelerating their decarbonisation is critical to meeting our legislated goal of cutting emissions by 70% by 2035 and achieving net zero by 2050.

That's why we are working with high emitting facilities to significantly reduce their emissions and strengthen their resilience in the future. Together, we can help shift NSW to a low-carbon economy.

The goal is to reduce industrial emissions across 3 focus areas:

1. Supporting decarbonisation in high emitting facilities

Help NSW manufacturing and mining operations deliver value for money emissions reduction projects.

2. Accelerating transformative decarbonisation projects

Prioritise innovative and ambitious low emissions projects to fast track NSW's progress to net zero.

3. Helping industry thrive in a low carbon economy

Build local skills, knowledge and jobs to ensure NSW industry prospers in a new low carbon economy.

This will ensure the highest emitting industries achieve sustained emissions reductions by 2030, in line with NSW's target of net zero by 2050.

High Emitting Industries is a focus area of the Net Zero Industry and Innovation Program and supports the Net Zero Plan Stage 1: 2020-2030.

About the funding

The NSW Government are providing $305 million of grant funding to help high emitting facilities develop decarbonisation projects, from feasibility studies through to commissioning.

If you are a manufacturing or mining facility in NSW that has emitted more than 90,000 tCO2-e per year in any year since the 2018-19 financial year, we want to work with you to implement proven low-emissions technologies and infrastructure.

Pre deployment projects

The Government will fund eligible projects to accelerate strategic scope 1 emissions reduction opportunities. Types of projects may include:

Projects with higher levels of commercial maturity are preferred.

Deployment projects

The Government will fund eligible projects to implement decarbonisation opportunities at NSW manufacturing and mining facilities, with a focus on scope 1 emissions reduction. These projects need to be technically ready and commercially proven opportunities.

To be eligible for funding, you must contribute at least 50% of the eligible costs of the project, with higher contributions preferred.

For more information, talk to us today.

How to use this information now

Before relying on a grant, confirm the current round, applicant and project eligibility, eligible expenditure, co-contribution, assessment process, closing date and evidence obligations. Build the technical case so the project remains understandable with grant support shown separately.

Separate source-reported facts from forecasts, targets and commentary. For a current project, retain the official source, version, effective date, assumptions and decision record in the evidence file.

What is the High Emitting Industries grant and which state does it apply to?

The High Emitting Industries grant is a NSW Government funding initiative aimed at reducing industrial emissions from manufacturing and mining facilities in NSW. Manufacturing and mining facilities in NSW contribute about 30% of the state's total emissions, including almost 60 facilities that emit more than 90,000 tonnes of carbon dioxide equivalent (tCO2-e) a year. The program funds both pre-deployment activities like feasibility studies and deployment projects that implement proven decarbonisation technologies, supporting NSW's legislated goal of cutting emissions by 70% by 2035 and achieving net zero by 2050.

How much grant funding is available and what types of projects are eligible?

The NSW Government is providing $305 million in grant funding to help high emitting facilities develop decarbonisation projects from feasibility studies through to commissioning. Eligible pre-deployment projects include late-stage feasibility studies, commercial trials, business case development, and front-end engineering and design, with higher commercial maturity preferred. Deployment projects must be technically ready and commercially proven, focused on scope 1 emissions reduction. Applicants must contribute at least 50% of eligible deployment costs, with higher contributions preferred.

Who is eligible for the High Emitting Industries grant?

Manufacturing or mining facilities in NSW that have emitted more than 90,000 tCO2-e per year in any year since the 2018-19 financial year are eligible. The program targets facilities seeking to implement proven low-emissions technologies and infrastructure. Eligibility is determined by historical emissions performance rather than current facility size or operational status. We can help eligible facilities assess their emissions against this threshold and prepare the emissions documentation required for grant applications.

What role does measurement and verification play in High Emitting Industries grant applications?

Measurement and verification establishes credible baselines and quantifies energy or emissions savings from proposed projects, which is critical evidence for both pre-deployment and deployment grant applications. Well-designed baseline and monitoring approaches, established before equipment changes, help secure funding by demonstrating that savings are recoverable and auditable. We provide measurement and verification services including project-boundary selection, baseline modelling and savings calculation, supporting applicants to build commercially defensible business cases and meet funder expectations for technical credibility.

How should facilities prioritise decarbonisation opportunities within scope 1 emissions?

The High Emitting Industries grant prioritises scope 1 emissions reduction—direct emissions from owned or controlled sources—and favours transformative, ambitious projects with innovation potential. Facilities should identify their major emissions sources, assess their technical readiness and commercial viability, and develop a staged reduction pathway. An energy audit or engineering assessment identifies site-specific opportunities; an opportunity register tracks each option's dependencies, estimated effect and implementation readiness. We deliver energy assessments, feasibility studies and transition planning to help facilities develop evidence-based decarbonisation strategies aligned with the program's focus.

What is an investment case and why is it important for High Emitting Industries grant applications?

An investment case presents the business problem, operational requirements, cost assumptions, energy or emissions benefits, funding contributions and risk factors for a proposed project. It allows decision-makers to compare alternatives and understand what could change the outcome. For grant applications, the investment case demonstrates technical and commercial viability, shows that the applicant's capital contribution is justified by the benefits, and provides the funder with confidence in project delivery. We guide facilities in building investment cases that align operating merits with funding options, making the commercial case transparent and defensible.

When should facilities start planning measurement and evidence collection for grant projects?

Evidence planning should begin during the feasibility or pre-deployment phase, not after equipment is installed. Starting early allows baseline data collection, baseline measurement procedures to be deemed appropriate by an independent professional, and project boundaries to be established while meaningful historical data can still be obtained. Facilities that delay evidence planning risk losing eligibility under certain schemes or having to retrofit monitoring systems at higher cost. We recommend raising measurement and funding questions while the project is still being scoped to preserve evidence and funding options.

How can facilities ensure their decarbonisation projects align with other NSW Government schemes and incentives?

Many decarbonisation projects may qualify for multiple funding sources—grants, environmental certificates from renewable or energy-efficiency schemes, or financing arrangements—but these must be assessed separately for eligibility and compatibility. Facilities should check restrictions in each programme, verify that project costs and outcomes are not double-counted, and confirm that prior assistance or contractual commitments do not affect proposed applications. We provide funding-pathway assessment to identify financial mechanisms and incentive pathways for energy projects, helping facilities navigate multiple schemes and structure applications to maximise support without conflicts.

What is scope 1 emissions and how does it relate to High Emitting Industries grant eligibility?

Scope 1 emissions are direct greenhouse gas emissions from sources owned or controlled by a facility—such as fuel combustion, chemical processes or on-site energy generation. The 90,000 tCO2-e eligibility threshold for the High Emitting Industries grant is based on scope 1 and 2 emissions combined. Understanding which emissions sources count as scope 1, measuring them accurately, and designing reduction projects that target those sources directly is essential for both establishing eligibility and demonstrating that the facility can deliver the emissions reductions expected by the grant programme.

How does Northmore Gordon support facilities through the High Emitting Industries grant application process?

We deliver a six-stage approach spanning assessment, feasibility, investment case development, project delivery and performance verification. For High Emitting Industries applications, we conduct energy audits to identify opportunities, develops feasibility studies and business cases to demonstrate commercial viability, provides measurement and verification to establish credible baselines and savings, and assists with emissions inventories and reporting. We also offer funding-pathway assessment and transition planning, helping facilities structure projects to meet grant eligibility criteria and maximise the commercial case for capital investment.

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