Investing in sustainability is about more than just regulatory compliance or moral choice. Today, it offers tangible business benefits. The green transition is a journey that, with the right financial backing, promises significant rewards for both the environment and your bottom line.
Irish SMEs can currently leverage a range of practical and financial sustainability supports, typically delivered through public agencies such as Enterprise Ireland (EI). This green cash will not only enhance your sustainability but also drive innovation and competitiveness. It’s a win-win. In this blog, we explore two of the most significant schemes in terms of potential investment.
SBCI’s Growth and Sustainability Loan Scheme
I’ve written before about SBCI and how it has brought much-needed competition for the pillar banks while making it cheaper to borrow. One of their newer products is the Growth and Sustainability Loan Scheme, a long-term low-cost scheme for SMEs and small mid-caps investing in growth and resilience or climate action and environmental sustainability.
It is possible to borrow between €25,000 and €3 million, with loans up to €500,000 being unsecured. As with other SBCI schemes, interest rates are very favourable. Loan terms range from seven to 10 years. The two-step process for this loan scheme means first applying to see if you are eligible (on the SBCI Hub) and then, if successful, applying for the loan with one of the participating lenders. At the time of writing, the lenders are AIB, Bank of Ireland, Finance Ireland, and PTSB.
The loan you apply for will depend on the purpose of the loan. SBCI breaks this down in the following way:
Climate action and environmental sustainability loan
This loan is available to SMEs investing in green measures as well as qualifying ‘green enterprises’. A green enterprise is defined as an SMEs with revenue of at least 90% in climate action and environmental sustainability areas (renewable energy, energy efficiency, circular economy, waste prevention and recycling, etc.) or farm holdings participating in sustainable programmes such as the Department of Agriculture, Food and the Marine’s Organic Farming Scheme or members of both the Agri-Climate Rural Environment Scheme (ACRES) and Bord Bia’s Sustainable Farming Origin Green programme.
Investments can include initiatives such as:
- building upgrades and renovations
- roof and wall insulation
- replacement of windows
- replacement of existing lighting with energy efficient LEDs
- electric vehicles and electric vehicle charging points
- manufacturing of energy efficient equipment or renewable energy equipment
- minimum tillage equipment
- tractor and harvester replacement
- agriculture building renovation or upgrade
Growth and resilience loan
This loan is for long-term investments towards the growth and resilience of the enterprise, which is a pretty broad brush.
Investments can include initiatives such as:
- investments in tangible or intangible assets
- machinery or equipment
- research and development
- business expansion
- premises improvement
- process innovation
Full information about eligibility, activities, and the application process can be found on the SBCI website. The scheme will be open until mid-2026 or until it has been fully subscribed, whichever comes first.
Enterprise Ireland Green Transition Fund
Enterprise Ireland’s Green Transition Fund is an initiative to help Irish businesses enhance their environmental sustainability and reduce carbon emissions. It supports the transition to a low-carbon economy through investment in energy efficiency, renewable energy, and other green technologies. The fund provides grants and other financial assistance to help businesses implement sustainable practices and improve their environmental performance.
“The transition to a low carbon economy and achievement of a 51% reduction in emissions by 2030 across all sectors of the economy represents a whole-of-society challenge. Enterprise, along with all other sectors, must fundamentally change to adapt to this challenge and to realise the many opportunities that this transformation represents.” – Enterprise Ireland
The Green Transition Fund supports companies from initial planning and capability building to investment, research and innovation. It is comprised of two separate streams: the Climate Planning Fund for Business (which includes supports such as the €1,800 Climate Action Voucher) and the Enterprise Emissions Reduction Investment Fund (which mainly targets manufacturers). Below are some of the larger supports available under these streams:
Climate Planning Fund for Business – GreenPlus
GreenPlus helps you fund training projects to build environmental management and staff capability with a grant of up to €50,000 (co-funding 50% of the eligible project costs). You can use this to hire a consultant or pay for training and learning:
- Training to build environmental management capabilities.
- Implementing environmental best practice within the company.
- Hiring an external environmental service provider.
- External training courses.
- Licence costs for the use of e-learning digital content for the period of the project.
- Covering part of the salary cost for up to 10 staff members working as part of the green team.
Climate Planning Fund for Business – Strategic Consultancy Assignment
Helping you to get your sustainability strategy right are two possible grant types – for short-term and longer projects. They both support the cost of hiring a consultant to help with the development and/or implementation of strategic initiatives.
- Long projects: A grant of €35,000 (co-funding 50% of the eligible project costs). For SMEs, eligible projects must be new assignments of strategic significance to the company.
- Short projects: Three 80% funded grants of up to €7,200 each. Eligible projects will be a pillar issue identified during a client development meeting, or a gender balance action.
Enterprise Emissions Reduction Investment Fund – Capital investment for energy monitoring and tracking systems
This grant of €50,000 (co-funding 50% of the eligible project costs) supports companies putting in place energy monitoring and tracking systems to begin accounting for the carbon footprint of their activities. It can be used for new metering systems hardware (e.g., electricity, gas, diesel, oil, water, steam, loggers) and reasonable installation and commissioning costs.
Enterprise Emissions Reduction Investment Fund – Capital investment for decarbonisation processes
This grant of up to €1 million (minimum of €20,000) supports companies to decarbonise their manufacturing combustion processes by investing in carbon-reducing equipment and technologies. Grant aid intensity is calculated as a percentage of the eligible project costs, which can vary based on business size.
These are some of the bigger grants, but there are other supports available under the Green Transition Fund. You can explore the full offer and contact the Sustainability Team on their website.
Making Irish business more sustainable
Sustainability is becoming key to winning business and attracting top talent. But implementing greener practices and changing established processes and mindsets requires a holistic approach. Smart businesses are leveraging the soft money and grants being made available for sustainability activities, and moving towards a low-carbon, resource-efficient business model.
If your business is not at the level to benefit from Enterprise Ireland grants or take on an SBCI loan, you can start with the supports on offer from agencies like the Local Enterprise Office or the Sustainable Energy Authority of Ireland (SEAI). There is plenty of help available, you just have to ask for it.
