Green Transition Fund

The Green Transition Fund is part of Ireland’s National Recovery and Resilience Plan (NRRP), which is funded by the European Union. The overall objective of which is to accelerate the decarbonisation of Irish enterprise, as part of Ireland’s National Recovery and Resilience Plan, funded by the European Union.

The Aim of the Fund

The Recovery and Resilience Facility is the largest component of NextGenerationEU, the European Union’s response to the global pandemic. The aim is to help repair the immediate economic and social damage brought about by the pandemic and to prepare for a post-COVID Europe that is greener, more digital, more resilient and fit to face the future.

The Green Transition Fund is targeted to contribute specifically to the Climate Action Plan 2021 measure of increasing the proportion of carbon neutral heating in low temperature manufacturing processes.

 

What’s available for Business

The Green Transition Fund supports companies at every step of their decarbonisation journey – from initial planning and capability building to investment, research and innovation. It aims to support companies as they prepare for a low-carbon, more resource-efficient future.

Under Ireland’s National Recovery and Resilience Plan (NRRP) (2021-2026), projects supporting the digital and climate transition of enterprise are being funded through the EU’s Recovery and Resilience Facility. This covers projects that will facilitate emissions reductions as part of a decarbonisation plan.

All projects supported under the Green Transition Fund must comply with relevant EU and national environmental legislation and in particular with the ‘Do no significant harm’ Technical Guidance.

What the Green Transition Fund comprises:

  1. The Climate Planning Fund for Business, which will give businesses funding to come up with a personalised plan to identify how best to remove reliance on fossil fuels in their business. A €1,800 grant to develop a plan and up to €50,000 matched funding to go towards specific capacity building within an enterprise are among the grants available.
  2. The Enterprise Emissions Reduction Investment Fund, which will give manufacturing businesses funding to invest in carbon neutral heating processes, smart metering and energy monitoring, and research and development. Up to €1 million is available for businesses to upgrade their processes.

The programmes will run over five years up to 2026. The National Recovery and Resilience Plan (NRRP) was developed by the government to direct funding under the EU’s Recovery and Resilience Facility. Ireland is expected to receive more than €900 million in grants over the lifetime of the Facility.

Supports for Business

 Climate Planning Fund for Business (€25 million total, 2022-2026)

Elements of funding Assistance available Available to:
Climate Action Voucher: Irish companies develop an initial sustainability/ decarbonisation/ circular economy strategy and action plan €1,800 grant for independent technical or advisory services Enterprise Ireland clients; Údarás na Gaeltachta clients
GreenStart: Achieve cost and resource reduction targets and lay a foundation for future environmental improvement projects 80% grant, up to a maximum of €5,000, towards the cost of hiring a Green Service Provider for seven days to undertake a short in-company assignment Enterprise Ireland clients; Údarás na Gaeltachta clients; Micro-enterprises in the manufacturing and internationally traded services sectors (who have undertaken a Green4Micro, and for whom an additional need for assistance has been identified); SMEs who are operating in the manufacturing and internationally traded services sectors, and who are not currently clients of Enterprise Ireland/UnaG
GreenPlus: Access an external environmental expert to develop a high level of environmental management capabilities, drive environmental efficiencies and achieve improved sustainability Assistance of up to 50% of eligible costs up to a maximum of €50,000 Enterprise Ireland clients; Údarás na Gaeltachta clients
Strategic Consultancy: The Strategic Consultancy programme will assist in the development and/or implementation of strategic initiatives and company plans in client companies in the areas of sustainability and decarbonisation Up to 50% of the eligible costs incurred in hiring a consultant, with a maximum grant amount of €35,000. Short programme: Up to 80% of the eligible costs incurred in hiring a consultant, with a maximum grant amount of €7,200. Enterprise Ireland clients; Údarás na Gaeltachta clients

 

Enterprise Emissions Reduction Investment Fund (€30 million, 2022-2026)

Elements of funding Assistance available Available to:
Capital investment for decarbonisation technologies: To incentivise companies to decarbonise through investment in CO2 reducing technologies in manufacturing combustion processes Min. grant aid of €20,000, up to a maximum of €1m (Subject to a max. grant rate of 30-50% of eligible costs (30%/Large, 40%/Medium, 50%/Small Enterprise)) Enterprise Ireland, Údarás na Gaeltachta and IDA Ireland manufacturing clients
Capital investment in Energy Metering: To incentivise companies to put in place monitoring and targeting systems to begin accounting for the carbon footprint of their activities Min. grant aid of €5,000, up to a maximum of €50,000 (Subject to a maximum grant rate of 50% of eligible costs) Enterprise Ireland, Údarás na Gaeltachta and IDA Ireland manufacturing clients
Research, Development and Innovation: R&D Feasibility: Assistance to carry out explorative work assessing the resource requirements and the strengths, weaknesses opportunities and threats of a potential R&D project in the area of sustainability Up to a maximum of €250,000, based on a grant rate of 50% of eligible costs IDA Ireland, Enterprise Ireland and Údarás na Gaeltachta Clients

 

Funding Criteria

All projects supported will be subject to existing State Aid Requirements as well as any specific grant offer conditions.

 

Environmental Compliance and Do No Significant Harm

Selected projects must comply with relevant EU and national environmental legislation and in particular with the ‘Do no significant harm’ Technical Guidance (2021/C58/01). Specifically the following projects are not eligible:

  • activities related to fossil fuels, including downstream use1;
  • activities under the EU Emission Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks2;
  • activities related to waste landfills, incinerators3 and mechanical biological treatment plants4; and
  • activities where the long-term disposal of waste may cause harm to the environment.

1 Except projects under this measure in power and/or heat generation, as well as related transmission and distribution infrastructure, using natural gas, that are compliant with the conditions set out in Annex III of the ‘Do no significant harm’ Technical Guidance (2021/C58/01).

2 Where the activity supported achieves projected greenhouse gas emissions that are not substantially lower than the relevant benchmarks an explanation of the reasons why this is not possible should be provided. Benchmarks established for free allocation for activities falling within the scope of the Emissions Trading System, as set out in the Commission Implementing Regulation (EU) 2021/447.

3This exclusion does not apply to actions under this measure in plants exclusively dedicated to treating non-recyclable hazardous waste, and to existing plants, where the actions under this measure are for the purpose of increasing energy efficiency, capturing exhaust gases for storage or use or recovering materials from incineration ashes, provided such actions under this measure do not result in an increase of the plants’ waste processing capacity or in an extension of the lifetime of the plants; for which evidence is provided at plant level.

4 This exclusion does not apply to actions under this measure in existing mechanical biological treatment plants, where the actions under this measure are for the purpose of increasing energy efficiency or retrofitting to recycling operations of separated waste to compost bio-waste and anaerobic digestion of bio-waste, provided such actions under this measure do not result in an increase of the plants’ waste processing capacity or in an extension of the lifetime of the plants; for which evidence is provided at plant level.