EC approves ~$477.36m Spanish scheme for industrial decarbonisation

The European Commission has approved a €408 million (~$477.36 million) Spanish scheme to support the decarbonisation of the manufacturing industry, in line with the objectives of the Clean Industrial Deal. This measure will contribute to the transition towards a net-zero economy and is funded under the Recovery and Resilience Facility (RRF). The scheme was approved under the Clean Industrial Deal State Aid Framework (CISAF) adopted by the commission on June 25, 2025.

Spain notified the commission, under the CISAF, a €408 million (~$477.36 million) scheme to support the decarbonisation of the manufacturing industry, which contributes to the objectives of the Clean Industrial Deal. The scheme will be fully financed by the RRF, following the commission’s positive assessment of Spain’s recovery and resilience plan and its adoption by the council.

The EC has approved a €408 million ($477.36 million) Spanish scheme under the Clean Industrial Deal to support industrial decarbonisation, funded by the Recovery and Resilience Facility.
The scheme will provide grants for energy-efficient, low-carbon technologies across sectors, aiming to cut 1.6 megatonnes of CO₂ annually, with aid capped at €200 million(~$234 million) per project.

The purpose of the scheme is to support the decarbonisation of manufacturing processes in existing installations through the deployment of investments contributing to reductions of greenhouse gas (GHG) emissions from industrial activities, and the improvement of the energy efficiency of industrial processes, the European Commission said in a press release.

Spain expects annual GHG emission savings of around 1.6 megatonnes of CO2. The measure will support investments into technologies such as electrification, shifting to renewable or low-carbon hydrogen, recovery of waste heat, carbon capture, storage and utilisation, in a wide range of sectors including chemicals, ceramics, paper and metallurgy. Under the scheme, the aid will take the form of direct grants. The measure will be open to enterprises of all sizes, and to installations and sectors within and outside of the Emission Trading System.

The commission found that the Spanish scheme is in line with the conditions set out in sections 3 and 5 of the CISAF.

Under the scheme, the aid amount is determined based on the eligible investment costs and pre-defined aid intensities (the percentage of supported costs), in line with the CISAF. Aid will be granted to eligible projects on a first-come, first-serve basis until the budget is exhausted. Projects need to be in operation at the latest 60 months after the aid is granted. To limit the undue distortion of competition, the aid cannot be used to finance an increase in the production capacity of the beneficiary. The maximum aid amount per company per project is capped at €200 million (~$234 million).

Fibre2Fashion News Desk (RR)