Low Carbon Manufacturing Challenge Fund

Support provided by Scottish Enterprise

What does this involve?

The Low Carbon Manufacturing Challenge Fund is for any company with a manufacturing base in Scotland that wishes to pursue business growth by developing low carbon products, processes or services. This may be achieved through pure research and development (R&D), capital investment or environmental aid support.

This grant is primarily focused on supporting projects that will help the transition to a low carbon economy. This may include, but is not limited to, developing:           

  • a new product or service, or introducing new technology that will use less energy, produce less waste, reduce emissions and use less raw material in its manufacture than the existing alternative
  • a new product or service which will use less energy, produce less waste, reduce emissions and use less raw material in its end use than the existing alternative
  • new business models based on the principles of the circular economy - for example, through circular supplies, resource recovery, product life extension, use of sharing platforms or delivery of 'product-as-a-service'

Funding will be available from 19 May 2022 until 31 March 2026.

This grant is part of Making Scotland’s Future activity, a programme led by Scottish Government and delivered by a range of partners including Scottish Enterprise, to help Scottish manufacturers grow and thrive.

Am I eligible?

An assessment of company and project eligibility will be made upon receipt of a fully completed expression of interest form.

Companies based in Scotland are eligible for this grant. Applicants can be a single Scottish-based company working in isolation (a single company project) or multiple companies, of which at least one is Scottish, working in collaboration.

Applicants must be based in Scotland. Non-Scottish partners are allowed but will not be supported by this fund.

Companies that are about to start relevant projects will be invited to submit an expression of interest which will be assessed by Scottish Enterprise. If you're assessed as potentially suitable, you'll be asked to submit a detailed application for grant funding. The Scottish Government’s fair work practices must be followed.


What does this cost?

The minimum grant value is £150,000 for eligible costs. The subsidy schemes will be followed, so the amount this fund will provide towards a project will vary depending on which scheme is used. Applicants will have to cover the remaining costs through other sources.

The Low Carbon Manufacturing Challenge Fund does not provide 100% funding towards eligible project costs. The level of grant support will be determined dependent upon:

  • project activity
  • the size of your company 
  • the location of the project

Who is this for?

Scottish manufacturing companies.

How long does this take?

The timeline from application to award is up to 6 weeks for grants under £500,000. Larger grants may take slightly longer.

Next steps

Submit an enquiry to receive an expression of interest form. If you’re successful, you’ll be invited to submit a full grant application.

Support provided by Scottish Enterprise

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