Embarking on the journey toward sustainability can be both rewarding and challenging, especially for small businesses or startups operating with limited resources. It requires thoughtful planning, a long-term commitment, and often, financial investment. The good news? There is a wide range of sustainability grants available to support UK-based small businesses in making greener choices and building more environmentally friendly operations.
Even better, your business doesn’t have to be part of a traditionally “green” industry to be eligible. Whether you’re aiming to reduce energy use, minimise waste, or adopt more sustainable materials, there are funding opportunities designed to help you take meaningful action, regardless of your sector.
In this post, we’ll break down what sustainability grants are and how they can empower small businesses to meet their environmental goals. To help you get started, we’ve also rounded up some of the top sustainability grants available, making it easier for you to explore your options and find the right funding to support your green ambitions.
Key Takeaways
- Sustainability grants provide businesses with the funding they need to upgrade their products, services, and practices to environmentally friendly alternatives.
- Entrepreneurs can benefit from reduced operational costs, customer base expansion, and a lower environmental impact.
- Grants are typically non-repayable, but they may contain certain restrictions about how you can use them.
What is a sustainability grant?
Also known as green or environmental grants, sustainability grants are funding specifically designed to help businesses become more environmentally responsible. They are issued by governments, charities, or private organisations and are generally non-repayable loans.
They can also take the form of prizes, awards, and tailored training. Some grants provide 100% funding, and some are match-funded, meaning you must supply the remainder of the project’s cost yourself.
Each grant scheme will have its own rules and eligibility requirements. For instance, they may specify that you need to use the funds on specific tools or materials. So, it’s essential to check these first and ensure they align with your goals.
What are the benefits of sustainability grants for small businesses?
Funding is crucial for businesses to expand, especially small businesses. Here’s what sustainability grants have to offer:
- Financial support – reduce the cost of investing in eco-friendly solutions, equipment, and products.
- Reduced costs – lower your long-term operating costs by switching to sustainable solutions.
- Attract customers – ‘green’ practices and values can help boost a small brand’s reputation and attract eco-conscious customers.
- Regulatory compliance – the government has started introducing new environmental regulations for businesses (such as the requirement to separate food waste from dry recycling from March 2025). Grants can make it easier for small businesses to stay compliant.
- Reduced environmental impact – reduce your carbon footprint and inspire your customers and competitors to do the same.
Which sustainability grants are available for small businesses?
SMEs are key to innovation and tackling the climate crisis. That’s why there are numerous private and government grants dedicated to supporting small businesses on their sustainability journeys. We’ve selected some of the top 10 UK sustainability grants to help you find the right one for you.
1. Clean Growth Fund
The Clean Growth Fund is an award-winning venture capital fund. It helps early-stage UK businesses and startups in the cleantech sector reduce their greenhouse gas emissions and improve resource efficiency.
Eligible businesses could receive between £500,000 and £3 million of initial investment.
In addition to grant funding, the Clean Growth Fund experts provide regular training and support for entrepreneurs throughout their sustainability journey. This sustainability grant is suitable for companies in the following industries:
- Power
- Transport
- Industrial
- Buildings
- Agrifood
- Waste
2. Amazon’s Sustainability Accelerator
This equity-free scheme is designed to help startups develop innovative solutions to the climate crisis. Entrepreneurs can use the grant to launch sustainable products and services and scale their businesses in an eco-friendly way.
Amazon’s Sustainability Accelerator offers monetary grants, specialised mentorship from industry experts, access to community events, and a tailored climate impact assessment.
This sustainability grant offers a £10,000 investment plus other financial credits. It’s also open to small businesses selling consumer products and those in the climate tech sector. You don’t have to be an Amazon seller to apply.
3. Workplace Charging Scheme
If you’re looking to switch to electric vehicles (EVs), consider the Workplace Charging Scheme. You could receive up to 75% of the cost of purchasing and installing up to 40 EVs and charging points for your business.
Please note that the grant is capped at:
- £350 per EV charging point
- 40 EV charging points across all your business sites
This sustainability grant is open to businesses, charities, public organisations, and small accommodation businesses.
4. Low Carbon Innovation Fund
Worth over £100 million, the Low Carbon Innovation Fund is open to new climate-tech businesses and small and medium-sized enterprises (SMEs) in the east of England looking to develop sustainable technologies, products, or services.
Applicants could receive £11 million worth of funding. They also need to demonstrate the reductions to greenhouse emissions their operations can make with the grant’s support.
5. LoCase
The Low Carbon Across the South East (LoCase) sustainability grant is open to organisations in the south and east of England. With up to £10,000 available, this programme provides vital funding to cover the cost of implementing low-carbon and renewable energy products and services.
Qualifying businesses can also access the Steps to Environmental Management (STEM) scheme, which provides business leaders with the training they need to operate in a more environmentally friendly way, save money, and expand their organisations.
6. Net Zero Ngage
Entrepreneurs looking to transition to net zero can benefit from dedicated support and match-funded sustainability grants through Net Zero Ngage. This grant is available to SMEs in:
- Hertfordshire
- Buckinghamshire
- Bedfordshire
- Berkshire
- Milton Keynes
- Northamptonshire
You can also sign up for various summits, expos, and events to engage with others and learn more about innovation, sustainability, and how to become a net-zero business.
Case study
Clearsight Opticians, a small, independent business based in Milton Keynes is one of the previous winners of the Net Zero Ngage sustainability fund. Like many other small businesses, Clearsight Opticians faced a series of financial challenges, including inflation and rising energy costs.
Net Zero Ngage helped the owners calculate their carbon emissions and develop practical steps to reduce their environmental impact. The plan focused primarily on technological and behavioural improvements. As a result, the business cut its energy consumption by a third from 2022 to 2023.
Arif Master, co-founder, said:
Considering the increased energy prices, I think we’d have been paying double by now if we had continued the way we were.
Their sustainability journey continues. They’ve even started offering their customers recycled eyewear cases.
7. LEAP Small Business Grant
Horsham District Council offers local businesses sustainability grants of up to £2,000 for projects that help future-proof their organisations. A further £5,000 is available for climate-friendly projects that help companies achieve their sustainability ambitions.
To qualify for the LEAP scheme, your business must:
- Be registered with Companies House and HMRC
- Employ no more than 20 people
- Be based in Horsham District
- Match at least 25% of the total project cost
- Provide a comprehensive three-year business plan
Case study
Horsham-based Bee Cosmetics, a small business offering natural skincare made from sustainable materials, is one of the recent winners of the LEAP grant. The company used the funding to launch new eco-friendly projects, including a glass return and refill programme, which allows customers to reuse their glass packaging rather than buy new. Elizabeth Ready, founder of Bee Cosmetics, comments:
This sustainable initiative provides us with a crucial competitive advantage, helping us to stand out and appeal to eco-conscious consumers.
8. Green Business Grant
SMEs in the Glasgow City Council area could receive funding of up to £10,000 through the Green Business Grant. The programme supports business owners in fighting climate change, reducing their company’s environmental impact, and transforming Glasgow into an ecological city.
The grant can fund equipment, travel, and waste minimisation improvements. The eligibility criteria include:
- Your business size must be small or medium, as defined by sections 382 and 465 of the Companies Act 2006
- Businesses must have been trading for at least 6 months
- Businesses must be located in the Glasgow City Council area, with headquarters in Glasgow
You’ll find the complete list of requirements on the Green Business Grant website. Please be aware that this small business grant covers up to 50% of the total cost of your sustainability project.
9. Swansea Carbon Reduction Grant
Through the Carbon Reduction Grant, green startups and SMEs based in Swansea could receive up to £10,000 to cover the cost of renewable energy generation, energy conservation measures, and sustainable changes to manufacturing processes.
The grant is 50% match-funded and includes a council-run course for entrepreneurs on identifying and reducing their carbon footprint. For further details and to submit an application, email growthgrant@swansea.gov.uk.
10. Grants in Northern Ireland
The Department of Agriculture, Environment, and Rural Affairs (DAERA) offers grants and support programmes for businesses in the environmental and woodland sectors. For instance, the Forest Expansion Scheme provides up to 100% funding towards new woodland planting of 3 hectares or more.
Other schemes include the Small Woodland Grant Scheme and the Forest Protection Scheme. Visit the DAERA website for more details.
Start making your small business more sustainable
Now that you know which sustainability grants are available, you can make an informed decision about which ones are best for your small business. If you haven’t found what you’re looking for, check the Gov.uk website for a complete list of what’s available. Most funding programmes are region-specific, so it’s best to filter by location or contact your local council about your options.
If you have any questions or comments about sustainability in small businesses, please leave them below, and one of the Rapid Formations experts will respond as soon as possible
In the meantime, if you want to find out more about how to make your small business more sustainable, discover our blog on how your business can reduce its carbon footprint.
Please note that the information provided in this article is for general informational purposes only and does not constitute legal, tax, or professional advice. While our aim is that the content is accurate and up to date, it should not be relied upon as a substitute for tailored advice from qualified professionals. We strongly recommend that you seek independent legal and tax advice specific to your circumstances before acting on any information contained in this article. We accept no responsibility or liability for any loss or damage that may result from your reliance on the information provided in this article. Use of the information contained in this article is entirely at your own risk.
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Thank you so much for this article,This article was very helpful for Small business accounting UK
Dear David,
Thank you for your kind comment. We are so pleased that you enjoyed this recent article.
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The Rapid Formations Team.