The government of Australia has launched the second round of its Carbon Capture Technologies (CCT) program, aimed at supporting CO2 management innovations that address both hard-to-abate industrial emissions and residual atmospheric carbon dioxide.
This initiative is part of the country’s sustainability strategy, which includes cultivating the growth of climate innovations that can help curb CO2 emissions on a national level.
During its first phase, the CCT program supported technologies such as direct air capture (DAC) and carbon mineralization.
In its second round, the initiative will offer grants to tech-powered pilot and demonstration projects that can capture, utilize, and remove CO2, and have the potential to create new, low-emissions or net-zero industries.
As eligible projects, the announcement lists initiatives using novel or emerging technologies for carbon capture and/or utilization for hard-to-abate sectors and novel or emerging carbon dioxide removal (CDR) technologies.
The call is specifically looking to support engineered CDR solutions, such as direct air capture (CDR), enhanced rock weathering (ERW), biomass carbon removal and storage (BiCRS), biochar, and mineral carbonation technologies, such as solutions that sequester CO2 in building or other materials.
Projects centered around CDR approaches driven by natural biological systems are not eligible for this grant opportunity. These include initiatives centered around agroforestry, afforestation/reforestation, and peatland or wetland restoration.
Organizations approved in Round 2 of the CCT program will receive up to nearly $7 million (AUD $10 million) in grant support to reduce Australia’s emissions.
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Through this national program, the Australian government aims to accelerate the advancement of carbon management solutions, backing their research, development, and demonstration as they make progress on tech and commercial readiness.
It also intends to fund the implementation of these solutions in hard-to-abate industries such as cement, chemicals, and steel, as well as demonstrate a verifiable permanence of CO2 sequestered via a range of utilization pathways.
Round 2 of the CCT program is accepting applications by Wednesday, 6 May 2026, 5pm AEST. The complete list of criteria and requirements for organizations can be found at this website.
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