The European Commission has approved German subsidies worth €5 billion ($5.9 billion) (zu dpa: «EU approves €5bn subsidies for climate measures in German industry») Julian Stratenschulte/dpa
The European Commission has approved German subsidies worth €5 billion ($5.9 billion) to assist businesses in the industrial sector in their efforts to reduce greenhouse gas emissions.
The “decision supports industry in making the shift to cleaner production while keeping a clear focus on efficiency and fairness,” said EU Commission Vice-President Teresa Ribera on Thursday.
Under the scheme, financial support will be available to projects that involve “fundamental technological changes and replace fossil fuels or raw materials with low-carbon alternatives,” the commission said.
Eligible technologies include electrification, the use of hydrogen or biomethane, carbon capture and storage, and similar innovations.
Aid payments will only cover the extra cost of switching to a cleaner alternative, and “if these become cheaper to operate, beneficiaries will have to reimburse the difference,” the commission said.
State aid in the EU has to be approved by Brussels and is strictly regulated to ensure fair competition between companies from economically strong member countries and those from less affluent regions.