Many governments are supporting businesses to reduce their emissions so they can reach the targets agreed with the United Nations. Short-, medium- and long-term business prosperity is critical to improve jobs, welfare and stability for citizens. For this reason, any government policies aimed at incentivising businesses to address climate change are often accompanied by technical assistance or grants. Green grants, which provide finance to companies pursuing environmentally friendly projects or objectives, are now available in many areas.
Many public initiatives are managed at the local government level so consult their website or helpline for guidance.
Example
The State of California in the United States has built a directory of grants and other programmes available to businesses looking to tackle their emissions and other environmental impacts.
Search on government department websites and in your national media for initiatives specific to the countries your business is active in.
Example
The UK’s Department for Business, Energy & Industrial Strategy (BEIS) lists a variety of available financial support across the country. For example, Low Carbon Dorset, in the UK, provides grants covering up to 40% of the project costs for carbon reducing, energy saving investments by businesses in the county of Dorset. It also provides technical advisory services.
Specialist grant websites aggregate grants from a variety of different places to make it easier for you to find options – have a look in your local communities and online.
Example
GrantsOnline brings together a variety of grants available in the UK into one database.
Local enterprise partnerships bring local businesses and municipal governments together to design policies and projects to promote local economies.
Example
One example in the UK is the Business Growth Hub, which provides peer-to-peer support and specialist advice on where to find financial support for sustainable projects.
The SME Climate Hub works to bring many of these services into one place with its library of tools and project partners.
Most countries have a bank that is owned in some way by the government or is funded by a group of governments, for example the World Bank. These banks can either directly finance sustainable activities with grants or loans at a low interest rate – known as promotional loans – or they can partner with private organisations to share risks and decrease interest rates.
Example
KfW partners with local banks around the world to offer loans, at better rates of interest for businesses assessed as contributing to sustainable development. Examples of similar partnerships in Latin America.
What you could ask
The aim is to understand what the organisations suggested above offer and, if nothing, to flag examples and whether they could consider doing something similar. Therefore, key questions to ask include:
- Do you offer support for businesses reducing their carbon footprint? For example:
- Help to fund investments in emissions-reducing equipment or other operational changes?
- Advisory services that could help us refine our emission reduction plans?
- If you do not offer support, are you aware of other organisations that do?
Read about businesses who have successfully found financial support
Potential sources of financial support – summary table
| Stakeholder | Motivation for providing financial support | Examples of what financial support might be available | Examples of who you could speak with to learn if support offered |
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Customers (buyers)
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Banks
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Grants and other forms of government support
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Balance sheet and investors
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