NSW Net Zero Planning Grant Round 2: up to $25,000 for eligible businesses
By Geoff Gourley · 9/6/2026
INSIGHT | SEPTEMBER 2026
A practical funding opportunity for NSW businesses to strengthen emissions data, climate risk management, governance and net zero planning — with the NSW Government contributing up to 50% of eligible project costs.
| Funding pool | Grant per business | Co-funding | Closes |
|---|---|---|---|
| $2 million | Up to $25,000 | Up to 50% | 30 Nov 2026* |
Applications may close earlier if the funding pool is exhausted. Applications are assessed on a rolling basis.
A timely opportunity to move from ambition to a practical net zero plan
The NSW Government has opened Round 2 of the Net Zero Planning Grant, providing eligible commercial and industrial businesses with financial support to better understand their emissions, climate-related risks and opportunities, and the actions required to progress toward net zero.
For many businesses, the challenge is no longer deciding whether carbon and climate issues matter. The harder question is how to turn broad commitments into a credible, decision-ready plan that can stand up to increasing expectations from customers, boards, lenders, investors and supply-chain partners.
The grant is designed to reduce that upfront planning burden. Eligible businesses can receive up to $25,000, covering up to 50% of eligible project costs, with funding delivered through two milestones.
What can the grant fund?
The program supports the planning foundations that businesses need before making larger decarbonisation investments. The NSW Government has structured the funding in two stages:
| Stage | Funding | Purpose |
|---|---|---|
| Milestone 1 | Up to $2,000 | Assess current maturity and identify priority actions across strategy, climate risk, governance, capability, data, targets, finance, stakeholder engagement and reporting. |
| Milestone 2 | Up to $23,000 | Undertake detailed eligible net zero planning work, such as a greenhouse gas inventory, climate risk and opportunity assessment, net zero action plan, target setting and other priority activities aligned with recognised frameworks. |
Eligible work must follow the NSW Net Zero Business Guide and, where relevant, align with nationally or internationally recognised frameworks. This is important: the program is intended to build robust planning capability, not simply fund a generic sustainability document.
Who is eligible?
At a high level, an applicant must have an ABN, be registered for GST, operate from a NSW site and meet the program's minimum annual energy expenditure threshold:
- At least $200,000 in annual energy expenditure at a single NSW site; or
- At least $500,000 in annual energy expenditure across multiple NSW sites.
Purchased fuels are included when calculating energy expenditure, making the program relevant to sectors with significant transport, logistics, manufacturing, agricultural or operational fuel use — not only businesses with large electricity bills.
The program is open across a wide range of commercial and industrial sectors, including manufacturing, agriculture, transport and logistics, retail and aged care residential services, subject to the detailed eligibility and assessment criteria published by the NSW Government.
Some organisations are specifically excluded
- Commonwealth, state and local government entities.
- Safeguard Mechanism facilities.
- Group 1 mandatory sustainability reporting entities under the relevant Corporations Act requirements.
- Businesses, or related entities, that have already received or will receive funding under this grant round or a previous round.
- Applicants receiving other NSW Government funding for the same activities.
Why this matters beyond the grant
The most useful way to look at this program is not as a subsidy for a report, but as an opportunity to build the information and governance needed for better business decisions.
A well-structured net zero planning process can help an organisation establish a defensible emissions baseline, identify material climate risks and opportunities, understand where operating costs can be reduced, prioritise decarbonisation initiatives and create clearer accountability across management and the board.
That capability is becoming increasingly valuable even for organisations that are not directly captured by mandatory climate reporting. Larger customers are asking suppliers for more emissions and ESG information. Lenders and investors are paying closer attention to climate exposure. Procurement requirements are evolving. And businesses with a clearer understanding of energy, carbon and transition risk are generally better positioned to make investment decisions before those decisions become urgent.
The commercial opportunity. For an eligible business, the grant can effectively halve the cost of specialist planning work up to the program cap. That makes this a practical time to build the foundations for future emissions reduction, climate resilience and disclosure readiness.
How ESG&I can help
ESG&I works with organisations to turn climate, sustainability and ESG requirements into practical business systems and implementation plans. For businesses considering the NSW Net Zero Planning Grant, we can help determine whether the opportunity is worth pursuing and, where appropriate, support the eligible specialist planning work.
- Eligibility and readiness review — a rapid assessment of whether the organisation appears to meet the program thresholds and has the information required to apply.
- Net zero maturity and gap assessment — identifying the most important actions across strategy, governance, data, targets, capability, finance and reporting.
- GHG inventory and carbon accounting — developing a clearer emissions baseline and identifying data gaps and priority sources.
- Climate risk and opportunity assessment — connecting physical and transition climate risks to operations, strategy and decision-making.
- Net zero strategy and action plan — establishing priorities, responsibilities, targets, sequencing and an achievable pathway forward.
- Governance and reporting readiness — defining ownership, evidence, management oversight and reporting processes that can mature with the business.
Timing matters: applications are assessed as they are received
Applications are currently open and are scheduled to close at 5:00 pm AEDT on 30 November 2026. However, the NSW Government has made clear that the program can close earlier if the available funding is exhausted.
That makes early eligibility assessment important. Businesses should also avoid commencing or committing to project activities prematurely and should review the funding guidelines and funding deed carefully before entering contracts or incurring costs intended to be covered by the grant.
Next step
If your organisation operates in NSW, has significant electricity or fuel expenditure and is considering its next steps on emissions reduction, climate risk or net zero planning, this funding opportunity is worth assessing now.
Talk to ESG&I. We can start with a brief, no-obligation discussion to assess your likely eligibility, current position and whether the NSW Net Zero Planning Grant is a commercially sensible pathway for your business. Get in touch.
Official program information
NSW Climate and Energy Action — Net Zero Planning Grant Round 2: View the official grant page
This article is general information only. Eligibility and funding decisions are determined by the NSW Government. Applicants should review the current funding guidelines and funding deed before applying or committing project expenditure.