Powering the Regions Fund – Safeguard Transformation Stream Round 2

Overview

This grant opportunity was announced in January 2023 as part of Government’s Safeguard Mechanism Reforms to support the Government’s ambition for Australia to become a renewable energy superpower. The Australian Government has announced a total of $600 million over the life of the program in recognition of the specific challenges faced by trade exposed facilities. For this second round of the Powering the Regions Fund - Safeguard Transformation Stream approximately $321 million is available from 2025-26 to 2032-33. The objectives of the grant opportunity are to: support trade-exposed facilities covered by the Safeguard Mechanism to reduce their emissions and contribute to meeting Australia’s 2030, 2035 and 2050 emissions reduction targets reduce the risk of carbon leakage, which occurs when a business responds to emissions reduction policies by moving emissions-intensive production to a country with less stringent policies provide skills development to existing industrial workforce in new equipment or processes that contribute to the reduction of scope 1 emissions. The intended outcome of this grant opportunity is a reduction of emissions at trade exposed Safeguard facilities consistent with their obligations under the Safeguard Mechanism.