Business grants

Low Carbon Manufacturing Challenge Fund

Low Carbon Manufacturing Challenge Fund (LCMCF)

Are you looking to grow your Scottish manufacturing company by developing low carbon products, processes or services? The LCMCF supports projects that will speed up the transition to a low carbon economy in the manufacturing industry. Grants with a minimum value of £150,000 are available.

About the challenge 

If you’re looking to grow your Scottish manufacturing business through developing low carbon products, processes or services, you can apply for the LCMCF grant.

Your project can use pure Research and Development (R&D), capital investment or environmental aid support in its effort to speed-up the transition to a low carbon economy in manufacturing. There’s a minimum value grant of £150,000 available.

This grant is part of Making Scotland’s Future activity, a programme led by Scottish Government and delivered by a range of partners including Scottish Enterprise, to help Scottish manufacturers grow and thrive. 

Making Scotland’s Future: A recovery plan for manufacturing

How much funding is available?

As with other subsidy schemes, grant values will vary depending on the type of proposal – whether it's an R&D, a capital investment, or an environmental aid project. 

The LCMCF doesn't provide 100% of funding towards eligible project costs. The level of grant support will be determined dependent upon project activity, the size of your company and the location of the project.

Once an amount has been allocated, you'll be required to fund the rest of the project independently. Grants with a minimum value of £150,000 are available to cover eligible costs.

You'll have the chance to discuss the full details with your advisor. 

Am I eligible?

If your project can help speed up the transition to a low carbon economy, we’d like to hear from you.

Your idea can include, but is not limited to:

  • The development of a new product, service or technology that will reduce emissions, energy consumption, waste production and decrease the use of raw materials in the manufacture, and/or end use, of the existing alternative
  • The development of new business models based on the principles of a circular economy. Through circular supplies, resource recovery, product life extension or use of sharing platforms, for example.

The challenge applies to companies based in Scotland. Maybe yours is a Scottish company working in isolation (a single company project), or one of a group of multiple companies working in collaboration – as long as at least one is based in Scotland, you’re eligible to apply.

It's important to consider the following:

  • An assessment of your company or project eligibility will be made once we've received your fully completed expression of interest form
  • All companies must follow Fair Work practices

Read about Fair Work practices on the Scottish Government website.


Funding will be available from 19 May 2022 until 31 March 2026. All project activity and related expenditure needs to take place in this timeframe.

Next steps

If you'd like to apply, download an application form and fill it out with your information. You should send the completed form(s) to

If you’re successful, you’ll be invited to submit a full grant application. 

Download an expression of interest form (Word, 326kB)


Get in touch

If you have any questions about this funding call, you can get in touch with our team.