Commission approves Spanish state aid scheme to support decarbonisation

The European Commission has approved a Spanish scheme worth €408 million to support the decarbonisation of the manufacturing industry, in line with the objectives of the Clean Industry Pact. This measure, which will contribute to the transition towards a zero net emission economy, is financed under the Recovery and Resilience Mechanism. The scheme has been approved under the Clean Industry Pact State Aid Framework, which the Commission adopted on 25 June 2025.

Spanish aid

Spain notified to the Commission, under the Clean Industry Pact State Aid Framework, a 408 million scheme to support the decarbonisation of manufacturing industry, which contributes to the objectives of the Clean Industry Pact. The scheme will be fully funded by the Recovery and Resilience Mechanism, following the positive assessment by the Commission of Spain’s recovery and resilience plan and its adoption by the Council.

The aim of the scheme is to support the decarbonisation of manufacturing processes in existing installations through investments that contribute to reducing greenhouse gas emissions from industrial activities, as well as increasing the energy efficiency of industrial processes.

Spain expects an annual reduction of greenhouse gas emissions of approximately 1.6 megatonnes of_CO2. The measure will support investments in technologies such as electrification, transition to renewable or low-carbon hydrogen, waste heat recovery, carbon capture, storage and utilisation, in a wide range of sectors, such as chemicals, ceramics, paper and metallurgy. Under this scheme, aid will take the form of direct grants. The measure will be open to companies of all sizes, and to installations and sectors both inside and outside the ETS.

The Commission has found that the Spanish scheme complies with the conditions set out in sections 3 and 5 of the State aid framework of the Clean Industry Pact (hereinafter the “Framework”).

Under the scheme, the amount of aid is determined on the basis of the eligible investment costs and predefined aid intensities (the percentage of aided costs), in line with the Framework. Aid will be granted to eligible projects on a first-come, first-served basis until the budget is exhausted. Projects must be operational no later than 60 months after the grant of the aid. In order to limit undue distortions of competition, the aid may not be used to finance an increase in the production capacity of the beneficiary. The maximum amount of aid per company and per project is EUR 200 million.

The Commission has concluded that the Spanish scheme is necessary, appropriate and proportionate to accelerate the transition to a zero net emission economy and to facilitate the development of certain economic activities, which are relevant elements in view of the implementation of the Clean Industry Pact. This is in accordance with Article 107(3)(c) of the Treaty on the Functioning of the EU and the conditions set out in the Framework.

On this basis, the Commission has approved this aid scheme under EU state aid rules.

Context

The European Commission adopted on 25 June 2025 the Clean Industry Pact State Aid Framework to promote support in key sectors for the transition to a zero net emission economy, in line with the Clean Industry Plan.

The Framework allows for the following types of aid, which Member States may grant until 31 December 2025 in order to accelerate the ecological transition:

• Measures to accelerate the deployment of renewables and low carbon fuels (sections 4.1 and 4.2). Member States can set up investment schemes for all renewable energy sources as well as energy storage, with simplified tendering procedures. Specific rules are also defined to accelerate the deployment of low-carbon fuels.
• Measures to allow a temporary reduction in electricity prices for large energy consumers to facilitate the transition to low-cost clean electricity (section 4.5). These measures will help to prevent industrial activities from relocating to locations where environmental standards are absent or less ambitious, before the decarbonisation of the EU electricity system is fully translated into lower electricity prices.
• Measures to facilitate the decarbonisation of industrial processes (section 5). Member States can support investments in the decarbonisation of industrial activities in order to reduce dependence on imported fossil fuels. This can be achieved through electrification, energy efficiency and switching to the use of renewable and electrolytic hydrogen meeting certain conditions, with increased possibilities to support the decarbonisation of industrial processes switching to hydrogen fuels.
• Measures to achieve sufficient clean technology manufacturing capacity (section 6). Member States can provide investment support for strategic projects in line with the Zero Emissions Industry Regulation (such as batteries, solar panels, wind turbines, heat pumps, electrolysers, and carbon capture, use and storage). This also covers the production of key components and the production and recycling of related key raw materials.
• Measures to reduce the risk of private investments needed for clean energy deployment, industrial decarbonisation, clean technology manufacturing, certain energy infrastructure projects and projects promoting the circular economy (section 8).

The non-confidential version of the decision announced on 15 December will be published under the number SA.119880 in the State Aid Register on the Commission’s competition website, once possible confidentiality issues have been resolved. The list of new publications of state aid decisions on the internet and in the Official Journal can be found in the weekly online competition news.

Further information: European Commission