Capital Investment for Decarbonisation Processes

Under Ireland’s National Recovery and Resilience Plan (NRRP) (2021-2026), projects supporting the digital and climate transition of enterprise are being funded through the EU’s Recovery and Resilience Facility. This covers projects that will facilitate emissions reductions as part of a decarbonisation planFunded by the European Union

Overview

The Capital investment for decarbonisation processes is funded under the Enterprise Emissions Reduction Investment Fund, the objective of which is to support companies to decarbonise their manufacturing combustion processes (i.e. heating from manufacturing processes) through investment in carbon abating capital equipment and technologies.

The fund aims to:

  • Reduce the payback period of key carbon reducing technologies at plant level by incentivising companies to invest in, and adopt these technologies
  • Increase the resilience of companies to climate change and support them to accelerate progress towards a net zero carbon pathway

The fund is operating under the Green Transition Fund, the overall objective of which is to accelerate the decarbonisation of Irish enterprise, as part of Ireland’s National Recovery and Resilience Plan, funded by the European Union.

Am I eligible?

Companies eligible for support under the Enterprise Emissions Reduction Investment Fund: Capital investment for decarbonisation processes, are manufacturing clients of Enterprise Ireland, IDA Ireland and Údarás na Gaeltachta, subject to the prevailing policies and eligibility criteria of those agencies.

Eligible companies must:

  • Have 10 or more full time employees in Ireland at the time of application
  • Have been generating sales for at least 5 years

Project eligibility

Eligible projects are those that are deemed to be significant capital investments in carbon abatement technologies and will result in a demonstrable reduction in carbon emissions.

The following is a list of technologies eligible for funding:

  • Industrial Heat Pumps (including air, water, and ground source)
  • Electric steam boilers
  • Heat recovery technologies
  • Mechanical Vapour Recompression (MVR) evaporators
  • Biomass boilers**

NOTE: The above list is not exhaustive, and each application will be assessed and considered on a case-by-case basis. Each applicant will have to provide a technical assessment to show suitability of the carbon abatement technology in their manufacturing combustion process, including site suitability, and to ensure alignment with national policy.

Solar panels are not eligible for funding. Information on the Micro-generation support scheme and SEAI solar grant can be found here.

If any expenditure is incurred before the date of application, the entire project will be ineligible for assistance.

Eligible projects are subject to the conditions set out in Articles 36, 38 and 40 (Environmental Protection) of the EU Commission General Block Exemption Regulation.

**For companies operating within the Emissions Trading System (ETS), biomass boilers are considered an eligible cost. For non ETS companies, biomass boilers may be supported under the Support Scheme for Renewable Heat (SSRH) through SEAI. .

Environmental Compliance and Do No Significant Harm

All projects supported under the Enterprise Emissions Reduction Investment Fund: Capital investment for decarbonisation processes must comply with relevant EU and national environmental legislation and in particular with the ‘Do no significant harm’ Technical Guidance  (2021/C58/01).

Specifically the following projects are not eligible:

  • activities related to fossil fuels, including downstream use1;
  • activities under the EU Emission Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks2;
  • activities related to waste landfills, incinerators3and mechanical biological treatment plants4; and
  • activities where the long-term disposal of waste may cause harm to the environment. 

1 Except projects under this measure in power and/or heat generation, as well as related transmission and distribution infrastructure, using natural gas, that are compliant with the conditions set out in Annex III of the ‘Do no significant harm’ Technical Guidance (2021/C58/01).

2 Where the activity supported achieves projected greenhouse gas emissions that are not substantially lower than the relevant benchmarks an explanation of the reasons why this is not possible should be provided. Benchmarks established for free allocation for activities falling within the scope of the Emissions Trading System, as set out in the Commission Implementing Regulation (EU) 2021/447.

3This exclusion does not apply to actions under this measure in plants exclusively dedicated to treating non-recyclable hazardous waste, and to existing plants, where the actions under this measure are for the purpose of increasing energy efficiency, capturing exhaust gases for storage or use or recovering materials from incineration ashes, provided such actions under this measure do not result in an increase of the plants’ waste processing capacity or in an extension of the lifetime of the plants; for which evidence is provided at plant level.

4This exclusion does not apply to actions under this measure in existing mechanical biological treatment plants, where the actions under this measure are for the purpose of increasing energy efficiency or retrofitting to recycling operations of separated waste to compost bio-waste and anaerobic digestion of bio-waste, provided such actions under this measure do not result in an increase of the plants’ waste processing capacity or in an extension of the lifetime of the plants; for which evidence is provided at plant level.

Ineligible Projects

Activities related to fossil fuel are not eligible for funding.

Solar panels are not eligible for funding. Information on the Micro-generation support scheme and SEAI solar grant can be found here.

What is the maximum funding available?

Funding will be in the form of a grant. Maximum grant aid will be €1m per project, with minimum grant aid of €20,000.

Grant aid will be provided against the eligible costs of the project. Eligible costs are the extra investment costs in a project required to go beyond EU standards for environmental protection, to increase the level of environmental protection in the absence of EU standards or to achieve a higher level of energy efficiency.

Grant aid intensity is calculated as a % of the eligible costs of the projects, and will be as follows:

Small EnterpriseUp to 50% of eligible costs
Medium EnterpriseUp to 40% of eligible costs
Large EnterpriseUp to 30% of eligible costs

NOTE: The grant claim is based on the costs of equipment excluding VAT.

To ensure delivery on the decarbonisation objectives of the fund and the achievement of value for money objectives, the grant awarded will also be determined by the efficiency of the carbon reduction achieved by the project. A guide grant rate of €500 per tonne of CO2 abated will apply.

Call Close Date

The fund will operate on an open call basis. It will remain open to applications until 1 October 2025, or until such time as the budget is exhausted, whichever date is earlier. Investment shall be completed by no later than 31 August 2026.

How do I Apply?

Applications must be discussed with your assigned Development Advisor prior to submitting an application. Enterprise Ireland clients should use this link to find their Development Advisor in order to discuss their proposed project. 

Applications and associated documents must be submitted via email and include the following:

  1. Enterprise Emissions Reduction Investment Fund: Capital Investment decarbonisation 1 of 3 Business Plan (.docx)
  2. Enterprise Emissions Reduction Investment Fund: Capital Investment decarbonisation 2 of 3 Project Plan (.docx)
  3. Enterprise Emissions Reduction Investment Fund: Capital Investment decarbonisation 3 of 3 Project Costs (.xlsx)
  4. M&V Template (.docx) - an M & V will need to be provided at the grant draw down stage which should align with the International Performance Measurement Verification Protocol (IPMVP) or equivalent. 
  5. Financial Data Sheet (FDS) (required for projects where the grant assistance package being sought is €150,000 or greater) (.xlsx)

The following documents are provided to support companies in completing the application forms

Counterfactual table (.docx)

Do No Significant Harm (DNSH) Information Note (.docx)

Applicants must give an undertaking that they have not sought or received, directly or indirectly, other national or EU funding for investments and/or actions qualifying for aid under this fund.

To be a valid application, a completed Application (including all of the documentation listed above) must be submitted together to GA-EERIF@enterprise-ireland.com. Clients should note that this is not a secured e-mail transmission.

Receipt of the application will be acknowledged by Grant Applications & Contracts - Industry (GA) within 3 working days. If after this period you have not received acknowledgement then you should contact GA by e-mail: GA-EERIF@enterprise-ireland.com

Project Assessment and Approvals

Eligible Enterprise Ireland, Údarás na Gaeltachta and IDA Ireland client applications will be assessed by their respective agencies.

Project assessment will include commercial, financial, and technical assessments prepared by relevant personnel from Enterprise Ireland, IDA Ireland and external experts where appropriate.

The technical assessment will address the following:

  • The described project will deliver a defined and measurable reduction in carbon emissions
  • Establishing the counterfactual (and therefore the eligible costs and legitimate grant rate), and that the costs being aided meet the criteria of being extra investment costs borne by the company directly related to the energy efficiency or environmental protection calculated in accordance with the relevant GBER Articles
  • The itemised capital items are fit for purpose

Claims Process

Click here for details relating to grant claims 

Note:   Measurement & Validation (M& V)* Template must be submitted as part of grant claim in order for claim to be paid out.

*M & V is the measurement, collection and analysis of data to determine the energy usage and savings before and after an energy efficiency activity has been implemented.

Key contacts/more information

The Reference Document contains full details on the projects and activities eligible for support, and the criteria on which applications will be assessed.