Powering the Regions Fund – Safeguard Transformation Stream Round 2

The program supports trade-exposed Safeguard Mechanism facilities to reduce their emissions and contribute to meeting Australia’s emissions reduction targets.

The objectives of the grant funding are:

• To help Safeguard Mechanism facilities cut emissions and support Australia’s 2030, 2035 and 2050 targets
• Lower the risk of businesses shifting emissions‑intensive production overseas to avoid stricter emissions rules.
• Train the current industrial workforce to use new equipment or processes that cut scope 1 emissions.

Eligible activities must include at least one of the following:

• Direct abatement, which includes on-site projects at trade-exposed Safeguard facilities that cut scope 1 emissions, such as energy efficiency upgrades, fuel switching, equipment upgrades for lower carbon inputs, reducing fugitive emissions and on-site carbon capture, use or storage.
• Common user infrastructure which refers to off‑site shared infrastructure that lowers scope 1 emissions for one or more trade‑exposed Safeguard facilities, such as hydrogen or bioenergy production and transport, off‑grid electricity generation, storage or transmission, and carbon capture, use or storage.

Grants between $500,000 and $50 million are available. Funding is expected to be matched with a minimum 50% co-contribution.

Applicants must hold an ABN and be one of the following:

• An incorporated Australian entity;
• A company limited by guarantee;
• An incorporated association.

In addition, you must be:

An owner or operator of a trade-exposed safeguard mechanism facility that is not a new or expanded gas or coal facility

This round closes on 6 May 2027 and applications will be assessed in batches:

• Batch 1: 5 February 2026 - 5 May 2026
• Batch 2: 6 May 2026 - 5 November 2026
• Batch 3: 6 November 2026 - 6 May 2027.