Applications are now open for Round 2 of the Powering the Regions Fund – Safeguard Transformation Stream, providing grant funding to support emissions reduction projects at trade-exposed Safeguard Mechanism facilities.
Applications close on Thursday 6 May 2027 at 5:00pm AEST. Applications will be assessed in batches: 5 February 2026 to 5 May 2026, 6 May 2026 to 5 November 2026, and 6 November 2026 to 6 May 2027.
Grants range from $500,000 to $50,000,000 and can cover up to 50% of eligible project expenditure.
Program background and objectives
This grant opportunity was announced in January 2023 as part of the Government’s Safeguard Mechanism Reforms, which aim to support the Government’s ambition for Australia to become a renewable energy superpower.
The Australian Government has announced a total of $600 million over the life of the program in recognition of the specific challenges faced by trade exposed facilities. For the second round of the Powering the Regions Fund – Safeguard Transformation Stream, approximately $321 million is available from 2025–26 to 2032–33.
The objectives of the grant opportunity are to support trade-exposed Safeguard facilities to reduce emissions and contribute to meeting Australia’s 2030, 2035 and 2050 emissions reduction targets; reduce the risk of carbon leakage; and provide skills development to the existing industrial workforce in new equipment or processes that contribute to reducing scope 1 emissions.
The intended outcome is a reduction of emissions at trade-exposed Safeguard facilities consistent with their obligations under the Safeguard Mechanism.
Eligible entities and who cannot apply
You can apply if you are an owner or operator of a trade-exposed Safeguard Mechanism facility that is not a new or expanded gas or coal facility, and you have an Australian Business Number (ABN). Eligible applicants must be one of the following:
- an entity incorporated in Australia
- a company limited by guarantee
- an incorporated association
You can’t apply if you are the owner of a trade-exposed Safeguard facility that is also a new or expanded coal or gas facility.
You also can’t apply if you are an organisation, or your project partner is an organisation, included on the National Redress Scheme’s list of institutions that have not joined or signified their intent to join the Scheme, or if you are an employer of 100 or more employees that has not complied with the Workplace Gender Equality Act (2012).
Partnering and the role of the lead organisation
Applicants can partner with one or more other organisations that also meet the eligibility criteria, but the group must nominate a lead organisation.
The lead organisation must complete the application form. If the group is awarded a grant, the lead organisation signs the grant agreement and is responsible for ensuring the group follows the rules in the grant agreement.
Eligible projects, locations and delivery timeframes
Projects must be aimed at contributing to Australia’s emissions reduction targets. Projects must be completed by 31 March 2033, with a maximum project period of 60 months.
Projects must be delivered in one of the following locations:
- on-site at any eligible facility, or
- shared infrastructure with a practical connection to an eligible facility and the grantee, located in Regional Australia (defined as any area outside a Greater Capital City but including Kwinana).
What the grant can pay for
Applicants can apply for a grant between $500,000 and $50,000,000.
Grant funding can be used for newly purchased or pre-existing plant and equipment, hired or leased plant, constructed plant, labour expenditure and on-costs, contract expenditure, staff training that directly supports the achievement of project outcomes, and decommissioning old equipment. It can also be used for required project audit activities where applicable.
To be eligible, expenditure must be incurred by the applicant or project partners within the project period, be a direct cost of the project, and meet the eligible expenditure guidelines.
How to apply and what to do next
Applications must be submitted through the online portal once the form is available. Applicants will need to create or log into a portal account, follow the instructions to complete the application, and submit before the closing date.
Applicants are advised to include enough detail and supporting evidence to enable a decision, and not to submit an application until it is complete, as mistakes cannot be corrected after submission.
If you own or operate an eligible trade-exposed Safeguard Mechanism facility, review the grant opportunity guidelines, confirm your eligibility, and prepare your supporting evidence so you can submit through the online portal ahead of the next assessment batch.
