Brussels – On Monday, the European Commission announced its approval of a Spanish aid initiative aimed at allocating 408 million euros for the decarbonization of the industrial sector. This project aligns with the objectives outlined in the Pact for a Clean Industry.
The plan is designed to facilitate the decarbonization of manufacturing operations in current industrial facilities through investments that aim to lower greenhouse gas emissions and enhance energy efficiency.
Spain anticipates an annual reduction of about 1.6 megatonnes of CO2 emissions, as detailed by the European Commission. The subsidized initiative will also support investments in various technologies, including electrification, the shift to renewable or low-carbon hydrogen, waste heat recovery, and carbon capture, storage, and utilization in industries such as chemicals, ceramics, paper, and metallurgy.
Support will be provided via direct grants available to companies of all sizes, covering facilities and sectors both within and outside the emissions trading system. The maximum aid for each company and project is capped at 200 million euros.
Further, the aid amount for each company will be determined based on eligible investment costs and set aid intensities, with grants awarded on a first-come, first-served basis until the budget is fully allocated.
Projects must commence operations within 60 months of receiving the aid. To prevent unfair competition distortion, the aid cannot be used to finance any increase in the production capacity of the beneficiaries, as stated by the Commission. (15 December)
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