Provides State aid to support industrial decarbonisation
19 Jun 2025
On 20 May 2025, the European Commission approved a €1.2 billion State aid scheme to support decarbonisation. The “Nationale Investeringsregeling Klimaatprojecten Industrie” (NIKI) scheme will, over a period of five years, provide aid through annual competitive bidding rounds. Participation is open to companies of all sizes in all industries capable of reducing life-cycle greenhouse gas emissions by at least 100,000 tonnes. Selection will be based on the lowest aid amount requested per tonne of CO₂ equivalent reduced. Life-cycle greenhouse gas emissions comprise all emissions attributable to a product or service, and bidders may present projects that either directly reduce emissions by decarbonizing the production process or reduce emissions through resource-efficiency and circularity measures, such as the use of secondary or bio-based raw materials. The European Commission stated that the public support provided under the scheme creates an “incentive effect”, causing beneficiaries to make investments they would not otherwise have made. The scheme is in line with the European Union Guidelines on State aid for climate, environmental protection and energy 2022 (CEEAG).
Nature of measure:
Type:
-
Promotion and facilitation (Investment facilitation )
Industry:
Inward FDI:
Yes
Outward FDI:
No
Sources:
