On 14 October 2026, the Spanish government announced the provisional approval of a total of €600 million in aid to compensate for indirect CO2 costs. The Ministry of Industry and Tourism justifies the measure as a way to mitigate the effects of electricity prices through the EU Emissions Trading System and safeguard the competitiveness of energy-intensive industries exposed to the risk of production shifting to countries with less stringent environmental requirements.
According to the ministry, the allocation relates to indirect CO2 costs actually incurred in 2025. The decisions are provisional; payments will be made only after administrative reviews have been completed and within the deadlines set for objections. Companies will be notified of their individual provisional allocation. The final decisions may lead to adjustments.
The ministry has not published a detailed breakdown by region in its announcement. According to a report by Europa Press €9.4 million is allocated to Extremadura. Larger amounts are usually recorded in regions with a high concentration of energy-intensive facilities. The final list of subsidised facilities and companies, which the ministry will publish after completing its review, remains decisive.
The aid is part of a long-established mechanism to mitigate indirect CO2 costs, which are passed on through electricity prices to particularly energy-intensive production processes. The legal basis is Real Decreto 309/2022, which sets out eligibility requirements, calculation methods and monitoring mechanisms. The allocation is also subject to the European Union’s state aid rules.
Energy-intensive industrial sectors are considered vital to employment and investment in Spain, but they also face high costs in transitioning to lower emissions. The ministry presents the aid as a bridge to limit international competitive disadvantages until improvements in efficiency, electrification and the use of climate-friendly energy sources have progressed further. At the same time, the support is conditional and limited under the regulation; parameters and ceilings are clarified as necessary in the annual calls for applications.
With its provisional decision, the government provides the companies concerned with planning certainty for the 2026 financial year. The next steps depend on processing the objections received and publishing the final list of beneficiaries. The amounts become payable and take effect in the accounts only once the decisions are legally binding.
Editor: Daniel Mayer (Article created with AI assistance).