European Approval of Spain's 400 Million Euro Industry Decarbonization Strategy

The European Commission has announced its approval of a Spanish aid scheme amounting to 408 million euros dedicated to supporting industrial decarbonization efforts. This strategic initiative aligns with the objectives of the pact for a green industry and aims to foster sustainable manufacturing practices across the country.

The primary goal of this plan is to support existing manufacturing facilities in reducing greenhouse gas emissions and improving energy efficiency. Targeted investments will enable industries to adopt cleaner technologies, contributing significantly to Spain's climate commitments and the broader European Green Deal.

By focusing on sectors such as chemicals, ceramics, paper, and metallurgy, the scheme promotes technologies like electrification, renewable hydrogen integration, residual heat recovery, and carbon capture, utilization and storage. These measures are essential for transforming industrial processes to be more sustainable and low-carbon.

Funding will be dispensed as direct grants available to companies of all sizes, including those outside the emissions trading scheme. The maximum aid per project is set at 200 million euros, with support calculated based on eligible investment costs and predefined aid intensity ratios.

Applicants must ensure their projects are operational within 60 months from receiving aid approval. The scheme explicitly prohibits using the funds to increase production capacity, aiming to avoid distortions of fair competition and market imbalance.

Overall, this initiative is a strategic move by Spain to meet national and European decarbonization targets, fostering industrial innovation and sustainable growth through substantial financial support and technological advancements.