Slovakia allocates another €150 million for industrial decarbonization

The program will help companies reduce emissions and improve energy efficiency

Slovak Environment Minister Tomáš Taraba announced the launch of a second €150 million support program for industrial enterprises as part of decarbonization efforts. The initiative aims to improve the energy efficiency of production, reduce greenhouse gas emissions, and lower business costs for purchasing quotas under the EU Emissions Trading System (EU ETS). This was reported by ceenegynews.

Funding will be provided by the European Union. Industrial enterprises covered by the EU ETS are eligible to apply. These companies generate about 90% of the country’s total industrial emissions.

There is no minimum or maximum grant amount for a single application. The key selection criterion will be the cost of reducing one ton of emissions: preference will be given to projects that will ensure the greatest reduction in CO2 at the lowest cost. Each project must guarantee a reduction in emissions of at least 10,000 tons of CO2 equivalent. To this end, the average level of emissions over the last five years will be taken into account, with one “abnormal” year being excluded from the calculations.

Only investment costs directly related to the implementation of measures are considered eligible, and they must be incurred after the application is submitted.

“The entire selection process is designed so that those who guarantee the greatest reduction in emissions for the least amount of support have the best chance of receiving funding,” Taraba explained.

The program is expected not only to contribute to the reduction of industrial emissions in Slovakia, but also to increase the competitiveness of companies in the future conditions of stricter climate regulation in the EU.

As a reminder, at the end of 2024, Slovakia reduced its steel production by 11.7% compared to 2023, to 3.9 million tons. Thus, the country ranked 36th in the global ranking of steel-producing countries (71), while in 2023 it ranked 34th.

There are two steel enterprises in Slovakia: US Steel Kosice, with a capacity of 5 million tons of steel per year, and Max Aicher Slovakia Steel Mills Strazske (620,000 tons of steel per year).