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

The beneficiaries of this PERTE are the manufacturing industry sectors, including manufacturing sectors of non-metallic mineral products (ceramics, cement and glass, etc.), chemical industry, oil refining, metallurgy and pulp and paper manufacturing. In addition to these, there are large combustion facilities in other sectors, particularly in the food and beverage industry. The planned actions will be carried out between 2023 and 2026, although the projects could be completed at a later date.

Within the framework of the PERTE for Industrial Decarbonization, a total investment of €11.6 billion is foreseen, with a public sector contribution of €3.1 billion, distributed among the different lines. This is a public-private partnership project that includes all the transformative measures that will drive projects aimed at decarbonizing the processes of companies in the manufacturing sector. The projects. To this end, these four transformative measures have been approved:

1. A comprehensive line of aid for actions to decarbonize the manufacturing industry of €2.3 billion, of which €800 million will be in the form of a grant and €1.5 billion will be in the form of a loan, to be implemented from 2023 onwards.
2. Line of aid authorized by the European Commission for manufacturing companies participating in the Important Projects of Common European Interest (hereinafter, IPCEI), on the industrial chain of hydrogen from renewable sources, with public financing of 450 million euros in the form of a grant to be executed in 2023. Royal Decree 251/2023, of April 4, is already published.
3. Study and evaluation of the creation of a Carbon Contract for Difference Support Fund and implementation of a pilot project, with public funding of €100 million to develop the project.
4. Support for the development of new highly efficient and decarbonized manufacturing facilities, with public funding of €150 million in grants and €100 million in loans.

The investments in decarbonization and modernization of the manufacturing industry promoted through this PERTE will increase the competitiveness of the sector by around 10% and will lead to the creation of around 8,000 jobs. Furthermore, according to estimates by the Ministry for Industry, Trade and Tourism, a reduction in emissions of up to 13 million tons of CO2e per year is expected.

Objectives of the PERTE for Industrial Decarbonization

The PERTE for Industrial Decarbonization will have the following objectives:

1. Decarbonizing production processes, allowing 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 challenge in reducing emissions and, in order to remain competitive, it will be essential to support investments in decarbonization.
4. Promoting Spain's energy security. The 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. Promoting the use of renewable energies. In this way it will be possible to reduce emissions while contributing to reducing dependence on fossil fuels.
6. Promoting the improvement of the environment by supporting the use of by-products and waste recovery to integrate them in other processes and thus reduce the environmental impact of products throughout their life cycle.
7. Creating high value-added employment. The decarbonization of the industry will be accompanied by better training of professionals who will have the necessary skills to be able to implement less polluting technologies.

Executive Summary [PDF] [825 KB]

Links of Interest

11/04/2023

Royal Decree 251/2023, of 4 april, regulating the direct award of subsidies to the company ArcelorMittal España S.A. for the implementation of the Hidrógeno circular DRI project, within the framework of the Recovery, Transformation and Resilience Plan.

Royal Decree 251/2023

27/12/2022

EThe Government approves the PERTE for industrial decarbonization with a public investment of €3,100 M.

Press Release

Project Narrative

PERTE Report [PDF] [ 2.2 MB]