Manufacturing industries will be able to improve energy efficiency and reduce pollution through a federal government grant of $1 billion.

Plant and equipment will be affordable for manufacturers provided through the $800 Clean Technology Investment Programs.

The remaining $200 million Clean Technology Food and Foundries Investment Program is also part of the federal government’s overall clean energy scheme.

According to the federal government’s delivery division, AusIndustry, the grants are a part of a merit-based program to support Australian manufacturers to maintain competitiveness in a carbon constrained economy.

“This program will provide grants for investments in energy efficient capital equipment and low pollution technologies, processes and products.”

This equipment is meant to cut manufacturing energy costs and reduce carbon dioxide emissions.

Minister for Climate Change and Energy Efficiency, Greg Combet said the government would change co-contribution requirements so the grant programs would be “more attractive” for small and medium-sized firms.

This change would mean that manufacturers requesting funding of $500000 but have a turnover of $100 million will only need to match the government grants on a ‘dollar for dollar’ basis.

According to the Department of Climate Change, applicants will be required to make a co-contribution of at least three dollars for each one dollar of government support.