This fund helps local businesses and social enterprises move closer to achieving net zero carbon emissions by reducing their energy use or making it greener.

Grants of up to £250,000 are available, which will cover between 10% and 40% of the total cost of a project.

The funding can be used for any project that helps reduce your carbon emissions through measures such as increasing energy efficiency, installing renewables, or improving waste management.

You can use the grant to pay for capital investment, such as purchasing equipment, fixtures, fittings and installation costs. You'll need to demonstrate that the funding will help you reduce your carbon emissions. Suggested uses include:

• upgrading heating, ventilation, or air conditioning systems
• draught proofing and improving insulation, doors, and glazing
• purchasing and/or installing LED lighting
• introducing equipment to help monitor, measure and control your emissions
• replacing equipment or machinery with more energy efficient systems
• installing renewable heat technologies
• installing renewable energy generating devices, such as wind turbines and solar PV
• measures to support sustainable travel
• measures to support waste minimisation, recovery, and reprocessing

You can read a full list of potential uses on the HIE website.

The amount of funding you get will depend on your business or social enterprise's financial need. You'll need to provide financial information to help HIE assess your application.

The deadline to apply is 31 March 2027.

To be eligible, your organisation must:

• be a small or medium-sized business or social enterprise
• have been trading for at least 12 months
• own your own premises in the Highlands and Islands or have written permission from your landlord to make changes to the premises
• provide evidence of planning permission from your local authority and any other building consents required for your project
• carry out business activity in the Highlands and Islands
• pay non-domestic or business rates

If your business is based in the inner Moray Firth area, you must have at least 10 full time employees (or equivalent). If your business is based in other parts of the Highlands and Islands region, you must employ at least 5 full time employees (or equivalent). Social enterprises can have any number of employees – there is no minimum requirement.

You must also comply with HIE’s fair work conditions to receive a grant.

You can still apply for this fund if you applied to the previous Green Grant Fund.

If you're invited to submit a full application, you'll need to measure your corporate carbon footprint for at least Scope 1 and Scope 2 emissions, plus Scope 3 if your project involves waste management.

Your business is not eligible if you are:

• a large enterprise, or part of a group made up of large enterprises
• a business or social enterprise that operates primarily in the following sectors: 
  • retail (shops)
  • food and beverage service (including pubs, cafes and restaurants)
  • personal services (such as hairdressers, beauticians and alternative therapists)
  • business services (such as lawyers and accountants)
• an accommodation business operating from your own home 
• an organisation primarily funded by the public sector

The funding cannot be used to:

• fund projects that have already started at the time you submit your expression of interest
• purchase electric vehicles, including bikes and cars
• purchase or install EV charging points that are mainly for public, customer or staff commuter use
• replace one fossil fuel technology or system with another, if realistically there will be no opportunity to change the fuel type in future
• pay for housing support
• pay waste management costs that involve a third party
• purchase audiovisual equipment, including televisions, laptops, computers, and cameras
• install renewable energy systems if you plan to sell the energy to the grid, or will receive a subsidy for them
• introduce new technology that will increase your carbon emissions
• refurbish derelict or unused buildings

You can read the full details of the eligibility criteria on the HIE website.

The grant will cover between 10% and 40% of your eligible project costs. If you're based in a remote or rural area, you may be eligible for funding to cover up to 50% of your costs.

You'll need to cover the rest of the costs through other sources.

The maximum amount you can receive is £250,000. The minimum amount you can apply for is £20,000. This means that projects with a total cost of £50,000 or less are unlikely to receive funding.

Businesses and social enterprises based and operating in the Highlands and Islands.

The application process has 2 stages.

The first stage is to complete and submit the online expression of interest (EOI) form on HIE’s website. You'll hear the outcome within 4 weeks.

If you're unsuccessful, you'll be told why and directed to other forms of support if possible.

If you're successful, you'll be assigned to a development manager who will guide you through the full online application process, which includes measuring your baseline emissions. The time required to do this will vary on a case-by-case basis.

The deadline to apply is 31 March 2027.

The amount of funding you get will depend on your business or social enterprise's financial need. You'll need to provide financial information to help HIE assess your application.

If you're invited to submit a full application, you'll need to supply supporting documents including:

• copies of your past accounts
• financial projections
• business plans
• evidence of quotes for goods and services
• details of your current carbon footprint
• details of any carbon savings that will result from your project 

You'll also need to provide evidence that you:

• own the premises that will be used for the project, or have written permission from your landlord to make changes to the premises
• have planning permission from your local authority to carry out the works detailed in your application 
• have any other building consent required

You must also comply with HIE’s fair work conditions to receive a grant.

Visit the Highlands and Islands Enterprise website for more information and to complete an expression of interest form.