Ane Barcos
The European Commission approved on Monday a €408 million state aid scheme proposed by Spain to support the decarbonization of the manufacturing industry.
This scheme, which falls within the objectives of the Green Industrial Deal, aims to contribute to the transition to a net-zero emissions economy and is financed through the Recovery and Resilience Facility (RRF).
The measure was assessed and approved under the state aid framework established by the Commission on June 25, 2025, known as the State Aid Framework for Industrial Decarbonization (CISAF). According to the Commission, the Spanish scheme is aligned with the objectives of the Green Industrial Deal and aims to reduce greenhouse gas (GHG) emissions and improve the energy efficiency of industrial processes.
The scheme will allow for investments in decarbonization technologies, such as electrification, the use of renewable or low-carbon hydrogen, waste heat recovery, and carbon capture, utilization, and storage (CCUS).
These investments will be available to various industrial sectors, including chemicals, ceramics, paper, and metallurgy, both within and outside the European Union Emissions Trading System (ETS).
Spain estimates that this initiative will enable savings of approximately 1.6 megatons of CO2 per year. Furthermore, the aid will be granted through direct subsidies, distributed on a first-come, first-served basis until the available budget is exhausted. Companies of any size can benefit, but with a maximum aid limit of €200 million per company and project.
According to the Commission, the measure is “necessary, appropriate, and proportionate” to accelerate the transition to a net-zero emissions economy and complies with the requirements established in the Treaty on the Functioning of the European Union (TFEU) and the CISAF framework.
The CISAF, approved in June 2025, provides various support options for Member States until the end of 2025 in sectors such as renewable energy, low-carbon fuels, and the decarbonization of industrial processes.
The Commission also establishes rules to facilitate the transition to low-cost clean electricity, the manufacture of clean technologies, and support for strategic projects in key areas such as batteries, solar panels, wind turbines, and household appliances.
With this approval, Spain takes a significant step in its recovery and resilience plan, aligning itself with the European Union’s objectives for fulfilling the Green Industrial Deal and decarbonizing its industry.
