Up to 275 million for compensatory aid for indirect CO2 emission costs

At IMPULSO, we are pleased to inform you that the text of the call for the COMPENSATORY AID FOR INDIRECT CO2 EMISSION COSTS₂ mechanism is now available, corresponding to 2019 costs, managed by the Ministry of Industry, Commerce and Tourism, which has an initial allocation of 6 million euros, which can be increased up to 275 million euros.

The granting of this aid is intended to compensate for indirect costs attributable to greenhouse gas emissions passed on in electricity prices. The aim is to avoid, as far as possible, a beneficiary being exposed to a significant risk of “carbon leakage” if its competitors from third countries do not face the same CO₂ costs in electricity prices and if said beneficiary cannot pass on those costs in product prices without losing a significant part of the market.

Below, we summarize the main characteristics of these grants:

BENEFICIARIES

Private sector commercial companies, whether or not they are included in the emission trading scheme, whatever their legal form, that are validly constituted at the time of submitting the application, and that carry out one or more activities in the sectors or produce the products listed below:

• Aluminum production.
• Mining of chemical and fertilizer minerals.
• Manufacture of other inorganic basic chemicals.
• Lead, zinc and tin production.
• Manufacture of leather clothes.
• Manufacture of basic iron and steel and of ferro-alloys.
• Seamless steel tubes.
• Manufacture of paper and paperboard.
• Manufacture of fertilizers and nitrogen compounds.
• Copper production.
• Manufacture of other organic basic chemicals.
• Spinning of man-made fibers.
• Manufacture of man-made fibers.
• Mining of iron ores.
• The following sub-sector of the pulp manufacturing sector: Mechanical pulp.
• The following sub-sectors of the manufacture of plastics in primary forms sector:
  • Low-density polyethylene (LDPE).
  • Linear low-density polyethylene (LLDPE).
  • High-density polyethylene (HDPE).
  • Polypropylene (PP).
  • Polyvinyl chloride (PVC).
  • Polycarbonate (PC).

PROJECT REQUIREMENTS

• Being at risk of carbon leakage due to having incurred indirect CO₂ emission costs as a result of production processes and/or having carried out commercial activities with third countries.
• Proving productive activity during the year prior to the call.

TYPE AND INTENSITY OF SUPPORT

Non-refundable grant of 75% of the eligible costs*, provided that productive activity is proven during the year prior to the call.

Eligible costs* are calculated using the formula from the European Commission Guidelines (contained in Communication 2012/C 158/04), using the lower value of the reference production BO or the actual production, Pr19, for the year 2019. A similar procedure is followed if the reference electricity consumption, BEC, or the annual consumption, Ce19, in 2019 is used for the calculation. This calculation method is set out in RD 1055/2014 of December 12, modified by RD 655/2017 of June 23, and in section six of the Call Order.

SUBMISSION DEADLINE

From June 1 to June 22, 2020.

05/12/2020