The Government negotiates with Brussels to increase compensatory aid to industries for CO2 emission costs

Reyes Maroto chairs the Steel Board to coordinate measures with the sector and Autonomous Communities to guarantee activity

MADRID, 12 Sep. (EUROPA PRESS) -

The Minister of Industry, Commerce and Tourism, Reyes Maroto, has advanced that the Government is working with Brussels to increase the maximum threshold of compensatory aid for CO2 emission costs for future calls, after having raised them to 244 million.

Maroto has made this announcement during the 13th meeting of the Steel Table, which he has chaired, and where he has addressed, together with representatives of other ministries, autonomous communities and business associations, the challenges of a sector affected by the rise in energy prices and in the process of transformation towards a more sustainable and digital production model.

Maroto has recognized that the current situation of energy prices is an issue that concerns all industrial sectors, and especially the steel sector.

The Government is preparing a proposal for a Contingency Plan that it plans to conclude this September, and with which it intends to achieve a European response in accordance with the needs of large energy consumers, such as the steel industry.

Last Friday there was a unanimous agreement in the European Energy Council to enable intervention mechanisms in the wholesale electricity market.

"Our responsibility is to find new answers to a situation that is extraordinary. Energy is being used as a weapon of war and our responsibility as a Government is to protect the economies, families and the industrial fabric in Europe", Maroto pointed out.

At the meeting, the minister related all the measures that the Government has been approving in recent months to deal with the rise in energy prices as a result of the war in Ukraine and that together have mobilized more than 850 million to support the electro and gas intensive industry.

After pointing out that the Government is aware of the importance of the steel sector in the Spanish economy and its contribution to territorial structure, Reyes Maroto stressed that measures have been approved to respond to the demands of large industry, such as the reduction of energy taxes and an increase in direct aid.

For example, he detailed that compensatory aid for CO2 emission costs has been increased to 244 million, and that the Executive is working with Brussels to increase the maximum threshold of this aid for future calls.

The minister has reviewed the aid approved to support large industry, such as selective tax reductions in four ways: by reducing charges and tolls, by suspending the 7% Tax on the Value of Electric Energy Production , due to the reduction of the Special Electricity Tax from 5.11% to 0.5%, and, in addition, they have been allowed to attend the new auctions of term energy contracts, directly as buyers or, indirectly, acquiring the energy to one of the acquiring marketers.

According to Industry, the temporary reduction of 80% of tolls benefits some 600 electro-intensive companies, which will be maintained until the end of this year. This measure represents a cost of 225 million euros.

This reduction in tolls is added to the permanent bonus of 85% of the bill charges included in the Statute of Electro-intensive Consumers that all electro-intensive consumers receive. The cost of this measure is 73.6 million euros.

Likewise, the Spanish Reserve Fund for Electro-intensive Entities Guarantees (Fergei) is in operation, endowed with 200 million euros for the coverage on behalf of the State of the risks derived from medium and long-term purchase and sale operations of the supply of electricity ( PPA) between electricity consumers who have the condition of electro-intensive consumers.

On the other hand, 375 million euros have been allocated in direct aid to gas-intensive companies.

It should be remembered that at a European level, Spain has managed to implement the Iberian mechanism, a measure that recognizes Spain and Portugal as energy islands, which has made it possible to implement temporary and exceptional measures, such as a cap on gas to generate electricity , in order to reduce electricity prices for consumers and businesses. Since its application, the Iberian mechanism is saving 2,000 million euros to the Spanish in the electricity bill.

In addition, as the President of the Government announced last week, the Executive is going to include, on a temporary basis, the cogeneration plants within the aforementioned Iberian mechanism to limit the price of gas, with the aim of protecting employment and the competitiveness of industrial sectors.

Other issues affecting the sector were analyzed at the Steel Table meeting, such as environmental regulation, the review of the emission rights trading system or the future Carbon Border Adjustment Mechanism, together with the continuation of the safeguard measures in the Trade section.

Finally, the minister announced to those attending the meeting that her department is working on a new Industrial Decarbonization Part that will finance investments to accelerate the decarbonization of industrial companies, the payment of lower CO2 emission rights, lower costs for consumption of fossil fuels, less use of resources and raw materials, among other measures.

This new tractor project has as a priority objective to improve the competitiveness of the Spanish industry and reduce its carbon footprint and its effect on the environment.

This is the first time that a Minister of Industry chairs the Steel Table. Representatives from the Ministry of Ecological Transition and Demographic Challenge, Ministry of Transport, Mobility and Urban Agenda, Ministry of Finance and Public Administration, Ministry of Labor and Social Economy, Ministry of Science and Innovation, representatives of the Autonomous Communities, members of Unesid, and heads of CCOO-Industry and UGT-FICA.