Last reviewed 9 February 2021

The Government has announced £40 million investment funding to help some of the UK’s most polluting industries find new ways to reduce their carbon emissions.

Steel processing, paper manufacturing, pharmaceuticals, and food and drink can use the investment to develop new solutions to reduce emissions, such as by using heat recovery technology to generate electricity and replacing gas with hydrogen fuel.

The Government says the funding will help businesses cut energy costs, protect jobs, and improve air quality across the UK. Announcing the measures, Energy Minister Anne-Marie Trevelyan said all “businesses large and small” have a part to play in reducing UK carbon emissions.

“That’s why our £40 million investment will not only help some of the highest polluting industries like steel, paper and pharmaceuticals build back greener by finding innovative ways to reduce their carbon emissions but will also create more opportunities for growth and jobs by levelling up and making industry fit for the future.”

This Government’s latest funding offer follows its earlier Industrial Energy Transformation Fund, where businesses in energy-intensive sectors can apply for grants worth up to £14 million for ambitious carbon cutting initiatives up until 2024.

Under this second competition window, the minimum grant has been lowered to £100,000 for deployment projects, which the Government says offers more flexibility for small businesses to receive funding to help speed up the process of getting new initiatives to market.

The focus on helping businesses reduce their carbon emissions is part of the Government’s wider “Green Industrial Revolution” mission to eliminate the UK’s contribution to climate change by 2050.

The Industrial Energy Transformation Fund (IETF) window opens for applications on Monday 8 March and closes on Wednesday 14 July. Further details about applying for funding under Phase 1 are available here.