EC approves EUR 2.7bn Austrian aid for industrial decarbonisation

The European Commission (EC) said Thursday it has greenlit a EUR-2.7-billion (USD 3bn) Austrian state aid scheme to help industrial companies decarbonise their production processes.

The support will be awarded through a competitive bidding process, with the first auction expected to be launched in 2024. The aid will be provided in the form of direct grants, covering investment costs only or both investment and operating costs. In the second category, grants will be awarded per tonne of greenhouse gas emissions avoided under contracts of up to 10 years and their amount will be adjusted annually so that it only covers the actual cost difference between fossil-based and renewable-based production.

The scheme will run until the end of 2030 and is expected to achieve around 10.5 million tonnes of CO2-equivalent savings until 2040.

“This EUR 2.7 billion scheme will help Austrian industries decarbonise their production processes and achieve greater energy efficiency. The measure will also help Austria reduce its dependence on imported fossil fuels, while ensuring that any potential competition distortions are kept to a minimum,” said Margrethe Vestager, Executive Vice-President in charge of competition policy.

(EUR 1 = USD 1.116)

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