Decarbonisation Grants: the road to Ireland's net-zero goals

From large-scale infrastructure projects to targeted funding initiatives, Ireland is tackling climate challenges on an ambitious journey towards achieving net-zero emissions by 2050. One of the most impactful recent developments in this effort is Enterprise Ireland's decarbonisation grant, which aims to drive emissions reductions and empower businesses to lead the way in sustainable innovation. 

Enterprise Ireland Decarbonisation Grant

In November 2024, Enterprise Ireland announced an unprecedented €55 million funding programme to support decarbonisation efforts across more than 400 companies. This grant will enable businesses to adopt innovative technologies and sustainable processes that will result in the reduction of Carbon Dioxide emissions of the order of 130,000 tonnes.  

The funding was approved under the Environmental Aid scheme and Enterprise Ireland’s Green Transition Fund. The European Union’s recovery and resilience facility backs the green transition fund for businesses, which is overseen in Ireland by Enterprise Ireland.

The grant is specifically designed for manufacturing and industrial companies, with eligibility criteria centred on businesses engaging in high-energy processes. To qualify, applicants must demonstrate a commitment to reducing emissions through investments in carbon-reducing technologies such as energy-efficient equipment, renewable energy systems, and heat recovery solutions. 

Eligibility and Key Conditions

• Who Can Apply: Manufacturing companies registered and operating in Ireland.
• Eligible Projects: Projects focused on decarbonisation processes such as upgrading industrial heat pumps, installing electric boilers, integrating heat recovery technologies, and more.
• Funding Levels: Up to 50% of eligible costs for small enterprises, 40% for medium enterprises, and 30% for large enterprises.
• Special Criteria: Projects must demonstrate measurable emissions reductions and align with Ireland’s climate targets. Applicants are required to show how the investment contributes to long-term sustainability.
• When It Does Not Apply: This grant is not applicable for companies involved in retail, hospitality, or those with limited energy-intensive processes. Routine operational expenses or non-innovative projects are also excluded.

Application Timeline

Applications for the grant are open until October 2025, or until the allocated budget is fully committed. Approved projects must be completed by August 2026, ensuring timely progress towards Ireland’s 2030 and 2050 climate targets. Businesses are encouraged to act quickly to secure funding while it is still available. This timeline underscores the urgency of Ireland’s decarbonisation goals while providing businesses with a tangible opportunity to contribute meaningfully to emissions reductions.

The Broader Context: Energy Challenges and Opportunities

Ireland’s decarbonisation journey extends beyond individual businesses. A November 2024 report by the Electricity Association of Ireland highlights the scale of the challenge, estimating that decarbonising the electricity sector alone will require an investment of €2 billion annually. While daunting, this figure reflects the critical need for systemic change in the energy landscape. A sustainable and reliable electricity grid is essential not only for reducing emissions but also for supporting sectors like manufacturing and transport in their transition to cleaner energy sources.

Significant progress has already been made. Ireland’s first offshore wind auction in May 2023 approved four projects with a total of 3 GW, and by early 2024, 1 GW of solar capacity was connected to the grid. These achievements demonstrate that while the financial requirements are considerable, the potential for renewable energy to transform Ireland’s energy sector is equally substantial.

Enterprise Ireland’s grant aligns seamlessly with these broader efforts, helping businesses play a critical role in reducing demand on the grid while transitioning to more sustainable practices.

BDO, your partner for a sustainable future

Navigating the complexities of sustainability initiatives, especially in light of frequent legislative changes, requires expert guidance. At BDO Ireland, we offer a comprehensive range of sustainability services to support businesses on their decarbonisation journeys.

Our services include:

• Carbon Advisory: Develop tailored strategies to reduce your carbon footprint and achieve net-zero goals.
• Governance and Sustainability: Deliver workshops and training to align leadership with ESG objectives.
• Responsible Tax Strategy: Align tax policies with your ESG commitments for enhanced transparency.
• Strategic Sustainability Consulting & Reporting: Provide ESG risk assessments, data analysis, and reporting solutions.
• CSRD Readiness and Assurance: Ensure readiness and compliance with sustainability reporting frameworks.
• Sustainable Finance: Navigate green financing options to support ESG initiatives.
  
• Grant Application Support: We assist organisations in understanding eligibility requirements and preparing robust applications for funding opportunities like the Enterprise Ireland decarbonisation grant.

Browse our Sustainability services and discover how you can integrate Sustainability into your business practices effectively. 

Conclusion: collaboration is the path to net-zero

Ireland’s net-zero ambitions are bold, but they are also achievable with the right mix of innovation, collaboration, and strategic investment. Enterprise Ireland’s €55 million decarbonisation grant is a prime example of how targeted funding can empower businesses to take decisive action. When combined with broader efforts to transform other sectors, these initiatives create a pathway to a greener, more sustainable future.

At BDO, we are proud to support businesses who wish to seize these opportunities while overcoming the challenges of decarbonisation. Whether you are looking to apply for the Enterprise Ireland grant or develop a comprehensive sustainability strategy, our team is here to guide you every step of the way. Here, we know and understand business, drawing on the experience of our audit, tax, advisory, and consulting experts in Ireland and across the world. 

The BDO difference is that our Senior-led teams are always business-outcome focused and dedicated to delivering the best solution to propel your business forward.