EU approves €2.7b Austrian scheme for industrial decarbonisation

The European Commission has greenlit a €2.7 billion Austrian scheme designed to support the decarbonisation of industrial sector production processes.

This initiative, which aligns with Austria’s National Energy and Climate Plan and the European Green Deal, aims to reduce reliance on Russian fossil fuels in accordance with the REPowerEU Plan.

The scheme will assist companies in cutting greenhouse gas emissions through a competitive bidding process set to begin in 2024.

Projects will be evaluated based on the aid requested per ton of emissions avoided and qualitative criteria, including innovation and sustainability. Only renewable energy sources will be used in supported projects.

Aid will be distributed as either investment grants, covering a portion of investment costs, or transformation grants, which cover both investment and operating costs. Transformation grants will be awarded per ton of emissions avoided under contracts lasting up to 10 years.

The programme, running until December 2030, is expected to achieve around 10.5 million tons of CO2-equivalent savings by 2040.

The commission’s assessment confirmed the scheme’s necessity, incentive effect, and limited impact on competition within the EU.