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Brussels – The European Commission reported this Monday that it has approved a Spanish aid scheme to allocate 408 million euros to support the decarbonization of industry, a project that Brussels considers proportionate and that fits with the common objectives set out in the Pact for a Clean Industry.
According to a statement from the European Executive, the aim of this plan is to contribute to the decarbonization of manufacturing processes in existing facilities in the manufacturing industry, thanks to investments that help reduce greenhouse gas emissions from industrial activities, as well as to increase the energy efficiency of industrial processes.
Spain foresees an annual reduction in greenhouse gas emissions of approximately 1.6 megatonnes of CO2, according to the information provided by Brussels, which specifies that the subsidized scheme also seeks to support investments in technologies such as electrification, the transition to renewable or low-carbon hydrogen, and the recovery of waste heat or the capture, storage and use of carbon in sectors such as chemicals, ceramics, paper and metallurgy.
The support will take the form of direct grants, which will be open to companies of all sizes, and to facilities and sectors both inside and outside the emissions trading scheme. The maximum amount of aid per company and project is 200 million euros.
In addition, the support per company will be calculated on the basis of eligible investment costs and predefined aid intensities, and the grants will be awarded in order of application until the allocated budget is exhausted.
The projects must be operational no later than 60 months after the aid is granted. To limit undue distortion of competition, the aid may not be used to finance an increase in the beneficiary’s production capacity, as the Commission stated in its communiqué. (15 December)