This aid aims to offset the increase in costs due to the exceptional increase in natural gas prices during 2022 for the gas-intensive sectors.
The Council of Ministers has approved an agreement amending the annex to Royal Decree-Law 20/2022, of 27 December, on measures to respond to the economic and social consequences of the Ukrainian War and to support the reconstruction of the island of La Palma and other vulnerable situations, which includes the activities included in the line of aid for the compensation of the additional costs due to the exceptional increase in the prices of natural gas during 2022.
The government authorized the Ministry of Industry, Trade and Tourism To articulate a aid line of 450 million euros for the gas-intensive industry. The aid program will be articulated by means of the corresponding order of bases and the subsequent order of convocation.
Two aid possibilities consistent with the Temporary Crisis Framework relating to State aid measures aimed at supporting the economy following the aggression against Ukraine by Russia are foreseen: una aid for 50% of eligible costs up to a maximum of EUR 4 million per business groupl for the whole timeframe of application, or an aid for 40% of eligible costs up to a maximum of EUR 25 million for the whole timeframe of application, provided that the beneficiary demonstrates that his EBITDA has been reduced by 30% or more in relation to the pre-invasion situation of Ukraine.
The activities included in the support line include sectors such as ceramics, tiles, paper, glass, iron, steel, aluminum, food products, artificial and synthetic fibres, among others. Below is the new list of economic activities that will benefit from the support line:
CNAE ACTIVITY
- 2343 Manufacture of ceramic insulators and insulating parts
- 2433 Production of cold profiles by forming with folding
- 2344 Manufacture of other ceramic products for technical use
- 1081 Manufacture of sugar
- 2332 Manufacture of bricks, tiles and cooked earth products for construction
- 2349 Manufacture of other ceramic products
- 2445 Production of other non-ferrous metals
- 2015 Manufacture of fertilizers and nitrogen compounds
- 2352 Manufacture of lime and gypsum
- 1712 Manufacture of paper and cardboard
- 1044 Manufacture of other oils and fats
- 1724 Manufacture of wallpaper
- 1711 Manufacture of pulp
- 2331 Manufacture of ceramic tiles and tiles
- 1042 Manufacture of margarine and similar edible fats
- 2892 Manufacture of machinery for the extractive and construction industries
- 2011 Manufacture of industrial gases
- 2320 Manufacture of refractory ceramic products
- 2030.21 Pigments, opacifiers and prepared colors, vitrifiable enamels and varnishes, plasters, liquid lusters and the like; glass frit
- 2311 Manufacture of flat glass
- 2313 Manufacture of hollow glass
- 2452 Steel Casting
- 2410 Manufacture of basic products of iron, steel and ferroalloys
- 1032 Production of fruit and vegetable juices
- 2017 Manufacture of synthetic rubber in primary forms
- 1089 Manufacture of other foodstuffs n.e.c.
- 2013 Manufacture of Other Inorganic Chemistry Commodities
- 2014 Manufacture of Other Organic Chemistry Commodities
- 2060 Manufacture of artificial and synthetic fibres
- 2059 Manufacture of other chemical products n.e.c.
- 2399 Manufacture of other non-metallic mineral products n.e.c.
- 2016 Manufacture of plastics in primary forms
- 2319 Manufacture and handling of other glass, including technical glass
- 2434 Cold drawing
- 1330 Textile finishing
- 2442 Aluminum production
Other measures to support the gas-intensive sectors
In the Royal Decree-Law 20/2022 of 27 December on measures to respond to the economic and social consequences of the Ukrainian War a specific line was also approved for the gas-intensive industries, with a endowment of 500 million euros, within the Ukraine Guarantee Line managed by el Official Credit Institute (ICO)with which the gas-intensive companies will have loans with a guarantee of up to 90% to mitigate their current liquidity problems. This line is already available to companies that need it.
In addition, the implementation of the new PERTE of Decarbonization of Industry was approved with an endowment of 3.1 billion euros of public aid to advance the decarbonization and energy efficiency of these important sectors that have to reduce their energy dependence and improve their competitiveness.
Finally, during 2022 the Government approved two lines of direct aid to the gas-intensive industry amounting to 125 million and 250 million euros, respectively.