The draft Order establishing the regulatory bases for aid for integrated action for the decarbonization of the manufacturing industry as part of the PERTE for Industrial Decarbonization within the framework of the Recovery, Transformation and Resilience Plan has been published, with an early call for applications for 2024.

This regulation articulates the first of the four transformative measures of the PERTE for Industrial Decarbonization, which includes aid for the decarbonization of energy sources with the electrification of processes and the incorporation of hydrogen; integrated energy management of industrial processes; reduction in the use of natural resources and carbon capture, among other lines of action.

BACKGROUND

The Recovery, Transformation and Resilience Plan, financed by the European Union in the framework of the NextGenerationEU instrument, includes 10 lever policies and 31 components, which bring together a coherent set of investments and reforms aimed at recovery and the promotion of a change in the economic, productive, and social model to address future challenges in a balanced way, towards a more sustainable, digitized Spain, with equality and greater social cohesion.

For the implementation of the Recovery Plan, a public-private partnership is included: the Strategic Projects for Economic Recovery and Transformation (PERTE). This category includes projects with a structural transformational impact on strategic sectors or with disruptive and ambitious research and innovation phases that go beyond the state of the art in the sector.

THE PERTE INDUSTRIAL DECARBONIZATION

Manufacturing industry accounts for 11.3% of Spain GDP, so decarbonization of its processes is essential to achieve the goal of climate neutrality by 2050.

The Council of Ministers approved on 27 December 2022 the Strategic Project for Economic Recovery and Transformation (PERTE) for industrial decarbonization, fulfilling a commitment to support industry in its transition to more environmentally friendly models and processes and to contribute to the goal of climate neutrality by 2050.

The PERTE industrial decarbonization will have the following objectives:

1. Decarbonization of production processes, enabling the viability of industries in the medium and long term.
2. Improving energy efficiency, by incorporating the best available technologies and implementing energy management systems in industries.
3. Improving the competitiveness of the manufacturing sector. The manufacturing industry will face a major emissions reduction challenge and, in order to remain competitive, it will be essential to support investments in decarbonization.
4. Promoting Spain’s energy security. Manufacturing industry is responsible for 30% of natural gas consumption in Spain (59% if electricity generation is excluded), so reducing this consumption will be essential to ensure Spain’s energy security.
5. Promote the use of renewable energies. This will reduce emissions while contributing to reducing dependence on fossil fuels.
6. Promoting environmental improvement by supporting the utilization of by-products and the recovery of waste for integration into other processes to reduce the environmental impact of products throughout their life cycle.
7. Creation of high added-value employment. The decarbonization of industry will be accompanied by increased training of professionals who will have the necessary skills to be able to implement cleaner technologies.

OBJECTIVES AND BENEFICIARIES

The PERTE is subdivided into four lines of transformative measures:

• Firstly, comprehensive action support for decarbonization.
• Secondly, support to manufacturing companies participating in the IPCEI on the renewable hydrogen industrial chain.
• Thirdly, it includes the study on the development of a fund to support carbon offset contracts.
• Finally, it includes a line of support for the development of new highly efficient and decarbonized manufacturing facilities.

The beneficiaries of this PERTE are the manufacturing industry sectors, among which the most important are the manufacture of non-metallic mineral products (including ceramics, cement, glass, among others), the chemical industry, oil refining, metallurgy and the manufacture of paper and fibre paper. In addition to these, there are large combustion plants in other sectors, particularly in the food and beverage industry. The planned actions will be implemented between 2023 and 2026, although the projects could be completed later.

According to the data provided in the addendum to the Recovery Plan approved by the European Commission on 2 October 2023, this PERTE will receive almost 3,000 million euros in transfers and loans.

This project represents a crucial step towards a more sustainable and environmentally friendly future for the manufacturing industry in Spain, with the aim of meeting climate commitments and promoting the competitiveness of the sector.

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