Unlocking Funding for Industrial Decarbonisation in Scotland

The Scottish Government has opened expressions of interest for the next round of funding under the Scottish Industrial Energy Transformation Fund (SIETF) for the financial year 2025-2026. This initiative provides critical financial support to help industrial businesses across Scotland reduce greenhouse gas emissions, improve energy efficiency, and transition to low-carbon technologies.

A Key Driver in Scotland’s Net Zero Strategy

Scotland has set ambitious climate targets, including achieving net zero emissions by 2045, five years ahead of the UK’s national goal. The industrial sector remains one of the largest contributors to carbon emissions, accounting for nearly 30% of Scotland’s total energy consumption. With energy prices fluctuating and increasing pressure from government regulations and investors, businesses need to act now to future-proof operations and remain competitive in a low-carbon economy.

The SIETF is designed to co-fund industrial projects that significantly reduce emissions, ensuring Scotland’s manufacturing, processing, and data centre industries can remain sustainable, cost-efficient, and globally competitive.

What Kind of Projects Will Be Funded?

The SIETF offers matched funding for projects that focus on:

✅ Improving Energy Efficiency – Upgrading outdated equipment, optimizing energy-intensive processes, and reducing overall energy waste.

✅ Transitioning to Low-Carbon Fuels – Shifting from fossil fuels to alternatives like hydrogen, bioenergy, or electrification to cut emissions.

✅ Implementing Carbon Capture & Storage (CCS) Technologies – Capturing and repurposing CO₂ emissions from industrial processes.

Why Should Businesses Apply?

For industrial organizations, accessing SIETF funding is not just about meeting regulations—it’s a strategic investment that delivers long-term financial and operational benefits.

💡 Lower Energy Costs – Investing in energy-efficient technology can cut industrial energy bills by up to 30%, reducing exposure to volatile energy prices.

💡 Stronger Competitive Advantage – Companies that proactively reduce emissions are more attractive to investors, customers, and supply chain partners prioritizing sustainability.

💡 Job Creation & Economic Growth – Decarbonization efforts in Scotland’s industrial sector are expected to generate thousands of skilled jobs, ensuring a strong and resilient green economy.

💡 Future-Proofed Compliance – With carbon pricing and stricter net-zero regulations on the horizon, acting early prevents future compliance risks and costs.

Who is Eligible?

To qualify for SIETF funding, projects must be:

✔ Located in Scotland
✔ Part of industrial manufacturing, production, or processing operations
✔ Applicable to data centres
✔ Well-advanced in planning, from options appraisal to deployment

Application Process & Key Dates

📅 February – March 19, 2025 – Call for expressions of interest
📅 April – May 2025 – Appraisal and due diligence of qualifying projects
📅 June 2025 – Funding notifications released
📅 March 31, 2026 – All projects must be completed

Building on Scotland’s Green Industrial Strategy

Since its launch in 2018, the Scottish Industrial Energy Transformation Fund has played a pivotal role in helping businesses drive investment in sustainable solutions. By supporting innovation and technological advancement, the SIETF contributes directly to Scotland’s Green Industrial Strategy and ensures businesses remain at the forefront of the global low-carbon transition.

Our team can help navigate the funding process, assess project feasibility, and implement decarbonization strategies tailored to your operations.

For more details on eligibility criteria, technology readiness levels, and Standard Industrial Classification (SIC) guidelines, contact the relevant enterprise agencies associated with the SIETF.

For further information, visit the Scottish Industrial Energy Transformation Fund page.