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Spain: The Ministry of Energy contributes 78 million to the Ministry of Economy to compensate the CO2 costs of the industries

13 March 2018 | Mitigation

The Government considers that a competitive industry is key to economic growth and job creation. In this sense it is essential to have competitive energy prices

The Ministries of Energy and Economy have signed on Friday March 9, an agreement through which Energy will transfer 78 million euros from its budget for a new call for aid to offset the indirect costs of CO2 incurred by large industrial companies. Once the funds have been transferred, the Ministry of Economy will be in charge of making a new call for aid.

The European energy and environmental policy, focused on the fight against climate change through the use of clean technologies, is a counterpart of an increase in energy costs compared to third countries. This situation means that European industries must compete with other industries located in countries that do not have to face these higher costs derived from environmental commitments, thus being exposed to a greater risk of offshoring.

In this way, the European Commission has authorized an aid mechanism that allows compensating the industries belonging to the most exposed sectors, for the costs attributable to the emissions of greenhouse gases passed on to the prices of electricity.

The additional 78 million euros contributed by the Ministry of Energy will significantly increase the amount of aid that had been granted in previous calls (6 million euros), thus placing it at levels closer to those of other countries in our environment .

The Government considers that a competitive industry is key to economic growth and job creation. In this sense, it is essential to have competitive energy prices.

To this end, the Ministry of Energy has recently implemented various measures to help improve the competitiveness of energy prices, especially for industries and households. Among other measures, it has kept the regulated part of the bill (tolls) constant for the fifth consecutive year and has launched various lines of aid to improve the energy efficiency of companies.

In addition to the actions carried out in the energy field, the Government is also promoting fiscal measures to improve the competitiveness of companies, as the economic recovery is allowing greater budgetary margin. In this sense, aid for compensation of CO2 costs will improve the competitiveness of industrial companies that compete increasingly in a global environment.

 

 

Source: Ministry of Energy, Tourism and the Digital Agenda of Spain