The European Commission (EC) announced its approval of a €2.7 billion ($3 billion) state aid program in Austria aimed at assisting industrial companies in their efforts to decarbonize production processes.
This support will be allocated through a competitive bidding framework, with the inaugural auction set to commence in 2024.
The funding will take the form of direct grants that can cover either investment costs alone or both investment and operational expenses.
For the latter, grants will be distributed based on the reduction in greenhouse gas emissions under contracts lasting up to 10 years.
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“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.
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The grant amounts will be adjusted annually to reflect the actual cost differences between fossil fuel-based and renewable energy production.
The initiative is scheduled to run until the end of 2030, and approximately 10.5 million tonnes of CO2-equivalent emissions are anticipated to be reduced by 2040.