Green Forum • 19 September, 2024 at 9:00 PM
The European Commission has approved, under EU State aid rules, a €2.7 billion Austrian scheme to support companies active in the industrial sector to decarbonise their production processes.
The measure will contribute to the implementation of Austria's National Energy and Climate Plan and to the achievement of the European Green Dealtargets, while helping to end dependence on Russian fossil fuels in line with the REPowerEU Plan.
Austria notified the Commission of its plan to support projects for the reduction of greenhouse gas emissions stemming directly from industrial installations, thereby contributing to the decarbonisation of industrial sectors and achieving the Austrian objective of climate neutrality by 2040.
The aid be awarded through a competitive bidding process. The first auction is expected to be launched in 2024. Projects will be selected on the basis of (i) the level of aid requested per tonne of greenhouse gas emissions avoided, and (ii) qualitative criteria, such as project maturity, economic and ecological sustainability, encompassing amongst others innovativeness and efficient use of resources and energy. All supported projects will be required to use energy from renewable sources only.
The aid will take the form of direct grants, covering either (i) investment costs only (so-called ‘investment grants'), or (ii) both investment and operating costs (so-called ‘transformation grants').
Selected beneficiaries for investment grants will receive aid for a share of the investment costs leading to the reduction of greenhouse gas emissions.
Selected beneficiaries for transformation grants will receive aid per tonne of greenhouse gas emissions avoided under contracts with a duration of up to 10 years. The aid amount will be adjusted annually to ensure that it only covers the actual cost difference between fossil-based and renewable-based production.
The scheme will run until 31 December 2030. It is expected to bring around 10.5 million tonnes of CO2-equivalent savings until 2040.