Net Zero Fund: supporting Australia’s transition to net zero
The Australian Government has released details on the design of the new $5 billion Net Zero Fund, which will provide highly concessional finance to help Australian industry adopt technologies that cut industrial emissions, and crowd in private capital.
Read on to see how the Fund will support Australia’s transition to net zero.
What is the Net Zero Fund?
The Net Zero Fund was announced in 2025 as part of the Industry Sector Plan and will be delivered by the National Reconstruction Fund Corporation (NRFC).
The Fund can invest in debt, equity and guarantee opportunities to support large scale industrial facilities to decarbonise and to Australian manufacturers of renewable and low emissions technologies.
The Fund will be more concessional, with a target rate of return of return of the 5-year government bond rate minus 1 per cent. The Fund will be implemented by mid-2026.
See more: Net Zero Plan
How will the Fund support large-scale facilities to decarbonise?
The Fund will deliver targeted investments to support the transition to less carbon-intensive manufacturing and production processes. It will enable Australian big energy users to invest sooner in clean energy upgrades.
How will the Fund support domestic manufacturing of renewable and low emissions technologies?
The Fund will support the scaling up of domestic manufacturing of renewable and low emissions technologies.
Eligibility may include advanced manufacturing projects and businesses involved in manufacturing products used in the following:
- renewable energy generation, transmission, distribution or storage
- energy efficiency
- recycling
- waste reduction.
Examples could include manufacturing components of:
- wind turbines
- batteries
- solar panels
- hydrogen electrolysers.
Learn more about the Net Zero Fund and how it will support Australia’s transition to net zero.