Spain to provide €600 million in subsidies to energy-intensive industries

The Spanish Ministry of Industry and Tourism has approved a preliminary resolution on subsidies for energy-intensive companies to compensate for indirect CO2 emission costs in the amount of €600 million. This is stated in a report from the ministry.

The beneficiaries include the following companies:

• Arcelor Mittal – €76.1 million (€42.2 million will go to the company’s divisions in Asturias, €29.2 million to the Basque Country)
• Celsa – €28.1 million,
• Ferroglobe – €21.7 million,
• Sidenor – €16 million,
• Global Steel Wire – €14.2 million,
• Siderúrgica Sevillana – €11.1 million.

“These are subsidies aimed at industrial sectors and subsectors that are at risk of carbon leakage, in accordance with European and national regulations,” the ministry said.

Since 2019, the government has mobilized around €2 billion in direct support for Spain’s energy-intensive industries through various lines of assistance. Last year’s budget for compensation for indirect CO2 emissions was €300 million, meaning that this year’s amount has doubled.

As a reminder, the German government recently announced the launch of a €6 billion large-scale program to support industrial decarbonization, including carbon capture and storage (CCS) technology in climate contracts for the first time. The initiative targets energy-intensive sectors such as chemicals, steel mills, cement and glass manufacturers, against the backdrop of tough climate targets and concerns about the competitiveness of German industry.