Grants to help businesses and social enterprises cut carbon

Businesses and social enterprises in the Highlands and Islands looking to reduce the environmental impacts of their operations can now apply to a new Green Grant Fund launched today (Thursday 26 September).

The three-year £2.7m fund was developed by Highlands and Islands Enterprise (HIE). It provides grants of between £20,000 and £250,000 towards projects that reduce carbon emissions and contribute to the region’s net zero ambitions.

The Green Grant Fund is aimed at small to medium sized enterprises (SMEs) and social enterprises that have been trading for at least a year and are eligible to pay non-domestic rates. Those in receipt of non-domestic rates relief are also eligible.

Commercial enterprises should have at least five employees in rural areas or ten if they are based in the Inverness area. Social enterprises can have any number of employees.

Applicants should also be following Fair Work Principles including paying their employees at least the Real Living Wage.

The green grants will cover between 10% and 40% of total costs of projects, or up to 50% for eligible applicants in remote and rural areas.

Activities could include improving energy efficiency in production, operations or premises, EV charging points, improving waste management, or sourcing more renewable energy.

Rachel Hunter, HIE’s director of enterprise and community support, said:

“We’ve developed the Green Grants Fund to help businesses to benefit from the transition to a net zero region and to generate wider economic benefits such as productivity, turnover and jobs. We are keen to hear from SMEs and social enterprises interested in reducing their environmental impacts while improving their viability prospects.”

This is the second round of HIE’s Green Grant Fund. The first round was piloted in 2023 for the creative industries, food and drink and tourism sectors.

Among the recipients was Black Isle Brewery who received support to install carbon capture machinery. Carbon dioxide is naturally released as part of the fermenting process. It’s also required in several processes within the brewing production. The new machine enabled the company to capture the carbon that would otherwise be released and store it for future production use.

Lawrie Wotherspoon, the company’s head of operations, said:

“For every kilo of CO2 we’re able to capture, we’re saving two because we’re not buying one and we’re not releasing one.”

Trustees of the Scalloway Community and Youth Centre in Shetland meanwhile were able to significantly upgrade their building’s insulation to reduce energy use and save money after receiving a grant from the fund.

The centre is a cornerstone of the Scalloway community, providing vital services for youth, seniors, and various local groups. With 12 part-time jobs, it’s not only an essential social hub but a valuable source of employment.

Trustee and volunteer Sonia Inkster said:

“We came back into the building following the insulation works and were delighted at how warm it was. During the summer we could turn down the heating and at times switch it off completely.”

More information about the Green Grant Fund is available here.