An update has been made to the recently released Clean Technology Investment Program that has allocate $800 million competitive, merit-based grants program to support Australian manufacturers to maintain competitiveness in a carbon constrained economy. This program will provide grants for investments in energy efficient capital equipment and low emission technologies, processes and products.
NEW grant ratio announced for carbon liable manufacturers.
On 31 July 2012 the Minister for Industry and Innovation, Greg Combet announced an additional grant ratio category under the Clean Technology Investment Programs for some companies with manufacturing facilities that are likely to face a direct carbon liability.
A new dollar-for-dollar (1:1) funding category will now be available for manufacturers with facilities that have emitted 25,000 tonnes or greater, but less than 100,000 tonnes of covered emissions in the last full financial year prior to application lodgement. This new grant ratio category increases the support for these manufacturers to make capital investments in low emission technologies, processes or products. Further details on the new grant ratio category are provided in the Grant Ratio for Carbon Liable Businesses Fact Sheet.
What is the new grant ratio category?
The Clean Technology Investment Program currently has funding ratios of 1:3, 1:2 and 1:1 for government to private co-investment. Successful grantees may receive 1:1 funding if their annual turnover is less than $100 million and the grant requested is less than $500,000.
The Government has now introduced a new dollar-for-dollar (1:1) funding category for manufacturing facilities with covered emissionsof 25,000 tonnes CO2‑e or greater, but less than 100,000 tonnes CO2‑e. These facilities do not need to meet any turnover or maximum grant amount threshold to be eligible for the new grant funding ratio.
Dollar-for-dollar grant funding means that applicants can receive grant funding of up to half of their eligible project expenditure.
Why is there a new grant ratio category?
Manufacturing facilities with covered emissions of 25,000 tonnes CO2‑e or more will face a direct liability under the Carbon Pricing Mechanism.
This new grant ratio category increases the support for some of these facilities to invest in energy efficient capital and low emissions technologies and reduce the carbon price impact on their operations.
Am I eligible?
You may be eligible for the new grant ratio category if your proposed Clean Technology Investment Program project is situated solely at afacility which emitted 25,000 tonnes or greater but less than 100,000 tonnes of covered emissions in the last full financial year prior to application lodgement.
Only Australia’s biggest polluters are expected to face a direct liability under the Carbon Pricing Mechanism. The vast majority of Australian businesses will not have any direct liabilities.
If you do not meet the eligibility requirement for this new grant ratio category, the Program’s existing grant ratio categories will apply. You may still be able to receive dollar-for-dollar grant funding if your requested funding amount is less than $500,000 and your annual turnover is less