Net Zero Business Support and Grants - AM reviewed
Renfrewshire Council · 4 November 2025
Back to Economy and Regeneration Policy Board — 4 November 2025 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
Page 1
PUBLIC To: Economy and Regeneration Policy Board On: 4 November 2025 Report by: Chief Executive Heading: Net Zero Business Support and Grants 1. Summary 1.1 This report provides an update to the Board on the activities of the Economic Development Team in advancing the Green Economy workstream with Renfrewshire businesses. The work focuses on supporting local enterprises to reduce their carbon footprint and develop innovative approaches to achieving Net Zero. This includes delivery of the Net Zero Business Grant Fund, launched in May 2022, alongside a range of wider business support initiatives. 1.2 The report outlines the current approach, progress of the fund to date, proposed actions to increase successful applications, and the broader package of Green Economy support being implemented. 2. Recommendations 2.1 Board members are asked to: (i) Note the contents of the report. 3. Background 3.1 Promoting a Green Economy in conjunction with local businesses was a new area of work for the Council from 2022. There are over 5,000 businesses operating in Renfrewshire and each generates carbon emissions through their use of buildings and transport as well as industrial or farming processes. 3.2 Businesses are being encouraged to reduce the impacts of climate change by calculating their carbon emissions, identifying which parts of the business contribute most to the production of greenhouse gas emissions and strategically planning what actions are needed to take to make the business
Page 2
PUBLIC more sustainable. 3.3 This workstream is being progressed principally through the delivery of a package of green business support, including a Net Zero Business Grant. 4. Net Zero Business Grant Update 4.1 An initial action within the Green Economy remit was the design and implementation of a Net Zero Business Grant for Renfrewshire which was launched in June 2022. 4.2 The Grant was established via resources secured through the Climate Change Action Fund and Local Authority Covid Economic Recovery Fund. It is open to small and medium sized enterprises (SMEs) operating from premises within Renfrewshire. Local businesses can apply for up to £10,000, to a maximum of 50% grant rate, towards eligible projects which will reduce their carbon emissions. 4.3 In order to monitor emission reductions, the application process requires potential applicants to gather baseline carbon footprint information for their organisation and to demonstrate how the proposed project will reduce their future emissions. 4.4 The Net Zero Business Grant fund has attracted a significant number of enquires. Thus far, there has been 14 successful applications resulting in a funding award of just over £124,000. The projects include: • Manufacturer of ingredients for the food industry – invested in a full replacement of its existing lighting system with an energy-efficient LED system. The reduction in their scope 2 emission meant: o Previous electricity consumption (lighting only) per annum (p.a) was 107,630 kWh o consumption after investment was 30.212 kWh, a reduction of 77,418 kWh or an annual environmental saving equivalent to 16.4 tonnes in C02e emissions. o Current annual cost of electricity is £32,289, proposed future cost is estimated at £9,064, savings of £23,225 p.a. o Project investment payback in year 2. • Electrical engineering and electrician business – invested in solar panels and battery installation capable of generating 26kw leading to an estimated electricity generation output of 18,192 kWh. Over a 25-year period, the total electricity generated is expected to be: o 427,459 kWh, of which 40% will be consumed on site, with the remainder exported to the Grid. o Energy costs savings over this period are suggested at £111,333 and export payments received for supplying surplus electricity to the Grid for the same period will earn £49,145. o The total value of future benefits and cost savings over 25 years would therefore be £160,478. • Wholesale supplier of domestic bathrooms – a key area of greenhouse gas output for the business came from electricity consumption from the Grid (Scope 2). Their investment in a roof solar panel system meant that:
Page 3
PUBLIC o the total energy generated from this new solar panel system would be 60,886 kWh / annum - split 73% for their own consumption with 27% passing to the Grid during peak generation summer months. o This would lead to a 25% annual saving on Grid electricity purchased and at least a £17k p.a reduction in energy bills 5. Wider Net Zero Business Support 5.1 Achieving Net Zero and building climate resilience remain key challenges for businesses. To support this transition and help offset rising energy costs, seven of the eight Glasgow City Region member authorities used UK Shared Prosperity Fund resources to partner with the University of Strathclyde. Through the University’s Extend Plus programme, Renfrewshire SMEs were offered a free Greenhouse Gas Carbon Baseline assessment. 5.2 The Extend Plus team supported SMEs to measure their carbon footprint and identify opportunities for emission reductions, cost savings, and annual CO₂e reductions. Each assessment provided a one-year emissions snapshot of their scope 1, 2 and 3 emissions (see below) along with recommended actions establishing a foundation for future Net Zero planning. 5.3 Scope 1 - these are direct emissions, including those from processes and vehicles. Scope 2 - these are indirect emissions that come from purchased electricity, heating, cooling and steam that is used in running a business. Scope 3 - these are also indirect emissions that come from the supply chain, employees’ waste, water use, use of business travel including flights, distribution of products, consumers using your products. 5.4 Running from March 2024 to March 2025, the programme was delivered at no cost to participants. Businesses provided energy data using a streamlined checklist developed by the Extend Plus team. The initiative was coordinated by the Glasgow City Region Programme Management Office, which managed delivery and reporting, while member authorities referred eligible businesses to the programme. 5.5 This initiative was well received with 51 SMEs within Renfrewshire receiving carbon baseline reports before the project closed in March 2025. These reports could then be used to support an application to the Net Zero Business Grant fund, to develop their strategy towards net zero and provided a first step towards on-going monitoring and evaluation of their carbon emissions. 5.6 A series of events have been held to raise awareness of the net zero agenda and share knowledge. These have included a large-scale event with Glasgow City Region partners, as well as a series of smaller, local events focused on local networking with speakers highlighting best practice and opportunities for progression. 5.7 Training events have also been held to upskill SMEs, contractors and colleagues. These aim to build confidence and capacity when considering sustainability initiatives.
Page 4
PUBLIC 5.8 In 2024-25, budget was allocated to a Business Challenge Fund through the UKSPF for additional business support programmes in key areas such as business growth and productivity, innovation, internationalization, digital upskilling, sustainability and net-zero 5.9 The Business Challenge Fund supported the delivery of technical upskilling for contractors wishing to move into “green markets”. This supported 16 businesses and enabled 42 individuals to access this training free of charge and aimed to increase the number of contractors available to deliver green technologies within Renfrewshire. 5.10 Business Advisors also benefited from upskilling with climate literacy training provided to the Business Development team. 5.11 Support has also been provided to assist local businesses to adapt to new ways of working through local initiatives such as the successful application to the Zero Waste Scotland Ditching Disposables scheme. This has allowed Paisley First BID and the Atrium Café in Renfrewshire House to access reusable cups free of charge. In turn, reducing single-use cups, waste and business costs. 6. Challenges & Next Steps 6.1 It is considered that the provision of the Extend Plus service was crucial to providing businesses with the advice and data required to inform their strategic decision making when investing in this area. This is in addition to providing the technical information required for the grant application. 6.2 Whilst 51 SMEs within Renfrewshire received carbon baseline reports, many did not go on to submit an application for net zero funding. It is considered that there are several factors contributing to the lower than anticipated conversion rate including: • Increasing cost of doing business reduces capital available for businesses to invest in improvements. The grant fund currently requires 50% match funding which could be prohibitive to some. • Increasing costs of doing business impacts prioritisation of net zero projects for SMEs. • Lack of knowledge and capacity within SMEs to take this forward • Lack of access to technical skills/advice required to implement net zero initiatives. These factors can discourage some businesses from progressing beyond the initial enquiry stage. 6.3 To address the obstacles identified and improve conversion rates within the Renfrewshire Net Zero Fund a suite of support is being offered to encourage more businesses to move from enquiry to application, including: • Raising awareness: To raise awareness and promote climate literacy, we will continue to hold events bringing together speakers and workshops from organisations who have positively engaged in the green agenda to share experience and best practice.
Page 5
PUBLIC • Early engagement and expert advice: Eligible local SMEs will have access to a carbon baseline review for their organisation. This baseline can then be used inform investment decisions, set carbon reduction targets, monitor impacts and encourage on-going evaluation of their net zero journey. • Technical support: In addition to the carbon baselining, consultancy services will be offered to SMEs based in Renfrewshire which will provide the technical support required to deliver carbon baselining for a limited number of businesses. This service will be available to SMEs based within Renfrewshire, identified through the Net Zero Grant process. Whilst baselining will not always be required in advance of grant applications, the service can be carried out as the project progresses where the activities are more carbon efficient and will make a saving. • Use of case studies: Sharing real-world examples of successful projects to demonstrate feasibility and benefits. • Upskilling & training: Training will be made available to SMEs based on feedback from businesses, events and the research project. By improving clarity, accessibility, and support to SMEs the likelihood of converting initial enquiries into formal net zero grant applications should increase. 7. Conclusion 7.1 The proposed package of business support comprising training, events and consultancy services will allow small and medium enterprises to improve their knowledge and understanding of the sustainability agenda, explore the green options available to them and make informed investment decisions. 7.2 The provision of training support will also aim to provide businesses with the skills required to continue monitoring and improving their emissions independently. Subsequently, organisations will be in a better position to access grant support for feasible and significant carbon reducing projects, in addition to meeting ever-increasing sustainability requirements of consumers and in the wider supply chain, funding and procurement spaces. Implications of the Report 1. Financial - No additional finance sought. Resources from the existing Climate Change Action Fund, the Local Authority Covid Economic Recovery Fund and the UK Shared Prosperity Fund would ensure that business support is available. 2. HR & Organisational Development - None 3. Community/Council Planning • Jobs and the Economy – progresses net zero agenda and green business support
Page 6
PUBLIC 4. Legal – None 5. Property/Assets- None 6. Information Technology None 7. Equality & Human Rights- The Recommendations contained within this report have been assessed in relation to their impact on equalities and human rights. No negative impacts on equality groups or potential for infringement of individuals’ human rights have been identified arising from the recommendations contained in the report. 8. Health & Safety- None. 9. Procurement – None. 10. Risk- None. 11. Privacy Impact- None. 12. Childrens Rights - None 13. Cosla Policy Position- Not Applicable. 14. Climate Risk – Not Applicable. ___________________________________________________________________ List of Background Papers • Economy and Regeneration Policy Board, 24 January 2023 “Net Zero Business Support and Grants” ___________________________________________________________________ Author: Colette Saez colette.saez@renfrewshire.gov.uk