Industry awards 179 million in compensation for indirect costs of CO ₂ emissions

Yesterday, the Ministry of Industry, Commerce and Tourism definitively awarded an amount of 179 million euros in subsidies related to the compensation mechanism for the costs of indirect greenhouse gas emissions corresponding to 2020. In total, 210 applications corresponding to 170 companies were approved, some with several facilities, and 93% of the aid requested has been attended. The deadline for the payment of aid is the month of December.

For the Minister of Industry, Commerce and Tourism, Reyes Maroto, “these aids show the Government’s commitment to the industrial sectors and are an effective instrument to improve their competitiveness, reinforce their industrial capacities and employment at a time when it is necessary to increase the weight of the industry to accelerate the economic and social recovery after the pandemic”.

Intervention in the components of the electricity bill

The minister pointed out that the competitiveness of large industry is one of the priorities on the Government’s agenda, in addition to guaranteeing a competitive energy price. Therefore, to minimize the impact that the rise in energy prices is having on large industry, the Government has intervened in the three components of the electricity bill.

In the first place, action has been taken on the fiscal side, with the reduction of VAT and the temporary suspension of the special tax on electricity, which represents a 60% reduction in the bill. Next, the Government has also intervened in the fixed costs of the system, offsetting the charges associated with renewables and extra-peninsular aid, on a permanent basis since it is one of the instruments included in the Electro-intensive Consumer Statute. Finally, the Executive has acted in the energy component related to the electricity tariff through different mechanisms.

The minister highlighted the budgetary effort that the Government is making to help large industry, which is evident in the 179 million euros that have just been awarded in CO2 compensation and in the 200 million from the Spanish Reserve Fund for Guarantees of Electro-intensive Entities (FERGEI) to guarantee the signing of long-term energy contracts and which has been operational since last November 4.

According to the Ministry in a statement, the steel sector is the most benefited, with more than 74 million euros in aid, followed by Chemical (34.7 million) and Paper (31.7 million). Asturias and Catalonia are the Autonomous Communities that benefited the most with 34.3 and 33.6 million euros each, followed by the Basque Country with 24.8 million, Andalusia with 23.4 million, Aragon with 17.3 million and Galicia with 12. 5 million.

It should be noted that the European Union allows each Member State to offset the indirect emission costs of industries in certain sectors or subsectors that are considered to be exposed to a significant risk of “carbon leakage”, due to costs related to emissions. greenhouse gas emissions reflected in electricity prices.

Source: EnergyNews