How to answer the net zero question in a grant application

To answer the net zero question in a grant application, cover four things: where you are now (your carbon baseline in tonnes of CO2e and how you calculated it), what this project will change (the annual saving in kWh and CO2e), your wider commitment (a realistic target or set of next steps) and how you will track progress. Keep it specific and proportionate. A small, well-evidenced saving scores better than a vague promise to be net zero by 2030.

Funders read hundreds of these answers. The ones that stand out are short on adjectives and long on figures.

What are funders really asking?

The wording varies. You might see:

• “How will this project contribute to net zero?”
• “Explain how the investment is aligned to your company’s carbon reduction plans.”
• “Describe any expected environmental impacts, either positive or negative.”
• “What are your organisation’s plans to reduce its carbon emissions?”

Underneath, they want to know three things. Will this project genuinely reduce emissions? Is the estimate believable? And is the business likely to keep going in the right direction after the grant is paid?

Nottingham City Council’s Bulwell Business Decarbonisation Grant is a good example of how explicit funders are becoming. Its application asks you to explain how the investment is aligned to your carbon reduction plans, then separately asks for your annual kWh, tariffs, current emissions, projected savings and how you calculated them.

What does a strong net zero answer include?

1. Your baseline. Your current annual emissions in tCO2e, the 12-month period they cover and the method. For example: “calculated from 12 months of energy bills using UK government conversion factors”. If you can split by source (electricity, gas, vehicles), do.

2. The project’s impact. The annual saving in kWh and in kg or tonnes of CO2e, as a percentage of your baseline, plus the cost saving. Show the calculation or attach it.

3. Your wider commitment. A realistic statement of direction. That might be a net zero target aligned with the UK’s legally binding 2050 goal, with an interim target. Or it might simply be your next two or three planned actions.

4. Monitoring. How you will check the saving happened. Usually comparing meter readings or bills for the 12 months after installation against your baseline.

Add any co-benefits briefly: lower bills, a more comfortable workplace, less maintenance, resilience against price rises. Funders like seeing that the project makes business sense too, because it means it will be used.

An example answer

Here is how a 12-person precision engineering workshop applying for an LED and compressor upgrade might answer in about 200 words.

Our carbon baseline for the 12 months to September 2026 is 21.4 tCO2e, calculated from our energy bills and fuel records using UK government conversion factors. Electricity accounts for 48,000 kWh (about 6.3 tCO2e), gas heating for 52,000 kWh (about 9.5 tCO2e) and our two diesel vans for about 5.6 tCO2e.

This project replaces 60 fluorescent fittings with LEDs and our 15-year-old compressor with a variable speed model. Using manufacturer data and our own lighting hours, we estimate a saving of 13,500 kWh a year. That is about 1.8 tCO2e a year, a 28% cut in electricity use and around £3,600 off our annual bill at our current unit rate.

This is the first step in our carbon reduction plan. Next year we will replace one van with an electric model and get a heat pump survey for the workshop. We have committed to reach net zero by 2045, and to halve our Scope 1 and 2 emissions by 2032.

We will monitor savings through monthly meter readings, compared against the same months last year, and report results to the council.

Every claim in that answer can be checked. The numbers add up, the method is stated and the next steps are realistic for a business that size.

Should you commit to a net zero date?

Only if you mean it. The UK has a legal target of net zero by 2050 under the Climate Change Act 2008, and many small businesses align with that or pick an earlier date. A date with no plan behind it tends to weaken an application rather than strengthen it.

If you are not ready to commit to a date, say what you will do over the next one to three years instead. That is honest and still scores well.

Also be careful not to confuse net zero with carbon neutral. Carbon neutral claims usually rely on offsets. Net zero means cutting emissions as far as possible first, with only residual emissions balanced by removals. For more on wording a commitment, see our net zero commitment statement example.

What if your project only saves a small amount?

Plenty of grant-funded projects save under a tonne of CO2e a year. A café swapping to LED lighting might save 400 kg. That is fine, and you should not inflate it.

Put the number in context instead. Express it as a percentage of your baseline, add the cost saving, and explain how it fits a sequence of steps. “This saves about 0.4 tCO2e a year, 9% of our electricity emissions, and is the first of three planned measures” reads as a business with a plan. Councils funding small grants expect small savings. What they want is confidence that the money produces a real, measurable change.

Mistakes that lose marks

• No numbers. “We are committed to reducing our environmental impact” earns nothing on its own.
• Inflated savings. Claiming LED lighting will halve a workshop’s total energy use invites scepticism. Show the assumptions.
• Offsets as the plan. The funder is paying for reductions, so lead with them.
• Mixing units. Keep kWh, kg CO2e and tCO2e clearly labelled. A slip from kg to tonnes changes your answer a thousandfold.
• No method. If the funder cannot see how you got a number, they have to assume it is a guess.

Where your numbers come from

You need a baseline before you can describe a saving. ESG Now calculates one from plain-English questions about your energy, vehicles, travel, waste and water. The report shows your Scope 1, 2 and 3 emissions using UK government conversion factors, with an appendix setting out every line as activity multiplied by factor, so you can quote the method directly in your application. Each figure is labelled as measured or estimated.

Most small businesses finish in under 30 minutes. Your first report is free. Start your report, then read how to show a carbon baseline for a decarbonisation grant. For more help, visit the grant applications hub.