Industrial Energy Transformation Fund (IETF) Phase 2 policy statement
This document outlines the design of Phase 2 of the fund and how it will help businesses on the path to net zero.
Applies to England, Northern Ireland and Wales
Documents
Details
Industry plays an essential role in society and in order for the UK to reach net zero by 2050, emissions need to fall by around two thirds by 2035.
The Industrial Energy Transformation Fund (IETF) plays a vital role in transforming the way industry consumes energy, aiming to help companies with high energy use to cut their bills and reduce carbon emissions. It was announced in Budget 2018 as a £315 million fund and is delivered in 2 phases:
- Phase 1, now closed, offered £70 million of funding for companies in England, Wales and Northern Ireland
- Phase 2, with the remainder of the funding, launches in 2021
In Autumn 2019, the government sought views on the design proposals for the Fund in its consultation Industrial Energy Transformation Fund: finalising the design. The June 2020 summary of responses to the consultation outlined the design choices for Phase 1 of the competition. This policy statement includes a second government response summarising the design choices for Phase 2.
Design choices are also informed by lessons learned and stakeholder feedback during Phase 1 of the competition and a process evaluation conducted after the first application window:
Companies located in Scotland can apply to the Scottish Industrial Energy Transformation Fund, which has similar objectives and design.