Hunter businesses looking to reduce their energy use and emissions have until 30 November 2026 to apply for Round 2 of the NSW Government’s Net Zero Planning Grant, which provides up to $25,000 towards the cost of developing and progressing net zero plans.
The second round of the program has $2 million available to support eligible NSW businesses with planning activities, including measuring greenhouse gas emissions, assessing climate-related risks and opportunities, and identifying opportunities to reduce emissions.
Applications close at 5 pm AEDT on Monday 30 November, although the program may close earlier if funding is exhausted. Applications are assessed on a rolling basis.
The grant forms part of the NSW Government’s $22 million Business Decarbonisation Program, which supports businesses to understand their emissions and identify practical opportunities to improve their environmental and energy performance.
What does the grant cover?
The Net Zero Planning Grant supports businesses to undertake planning work that can inform future emissions reduction activities.
Funding is provided through two stages, with the first offering up to $2,000 towards an assessment of a business’s current approach to net zero planning.
This assessment uses the NSW Government’s Net Zero Business Guide to examine areas such as governance, emissions data, targets, financial planning and workforce capability, and identify actions requiring further work.
The second stage provides up to $23,000 towards more detailed planning activities identified through the initial assessment.
Both stages are subject to the requirement that grant funding covers no more than 50 per cent of eligible costs.
Activities that may be funded include developing greenhouse gas emissions inventories, establishing net zero targets, assessing climate-related risks and opportunities, and preparing short-, medium- and long-term emissions reduction action plans.
The program can also support work on net zero governance arrangements, financial planning and stakeholder engagement.
Funding is limited to eligible specialist consultancy services. It cannot be used for capital expenditure, equipment purchases, equipment or technology assessments, carbon offsets, or other costs excluded under the program guidelines.
Which Hunter businesses are eligible?
The grant is aimed at businesses with substantial energy expenditure, making it potentially relevant to manufacturers, industrial operators and other energy-intensive businesses in the Hunter.
To be eligible, businesses must have an Australian Business Number (ABN), be registered for GST, and have a business site and operations in NSW.
They must also spend at least $200,000 annually on energy at a single NSW site, or a combined $500,000 annually across multiple NSW sites and operations. The expenditure thresholds include purchased fuels as well as electricity.
Businesses that have already received funding through the Net Zero Planning Grant, or are due to receive funding under the program, are ineligible. Applicants also cannot receive other NSW Government funding for the same activities.
Other exclusions include facilities covered by the Australian Government’s Safeguard Mechanism and businesses that are required to prepare sustainability reports as Group 1 reporting entities under section 292A of the Corporations Act 2001, including where a related entity meets that description.
Government entities are also excluded.
Applicants must satisfy the full eligibility and assessment criteria set out in the funding guidelines.
Helping businesses plan their next steps
The NSW Government awarded $1.3 million to 46 businesses through the first round of the Net Zero Planning Grant.
One recipient, commercial laundry operator Alsco Uniforms, used the funding to develop an emissions reduction action plan for its Campbelltown facility.
According to the NSW Government, the work helped the company assess opportunities to reduce emissions and identify a preferred pathway towards net zero, providing information to guide future operational and investment decisions.
For Hunter businesses considering how to reduce emissions from their operations, the grant offers financial assistance with planning activities such as establishing emissions baselines, setting targets and developing action plans.
It does not provide funding to purchase equipment, install emissions reduction technologies or undertake equipment and technology assessments.
Businesses applying for Round 2 will need to provide evidence of their energy expenditure and demonstrate that their proposed activities meet the program requirements. Meeting the eligibility criteria does not guarantee funding.
Applications opened on 1 September 2026 and will close at 5 pm AEDT on Monday 30 November, unless the $2 million allocation is exhausted earlier.
