EU Approves €75M Annual Grants to Cut CO₂ Costs for Energy-Intensive Firms

The European Commission has approved new funding guidelines to support energy-intensive businesses. The scheme will help companies offset indirect CO₂ costs in 2025 and 2026 under the 2025 Site Protection Act. It aims to ease the financial burden of rising electricity prices for eligible firms. The 2025 Site Protection Act came into force as a temporary measure for the next two years. It allows companies consuming over 1 gigawatt-hour of electricity per facility annually to apply for grants. These grants can cover up to 75% of their actual indirect CO₂ expenses, with a maximum cap of €75 million per calendar year.

To qualify, businesses must invest at least 80% of the grant received into energy efficiency and decarbonisation measures. They must also conduct an energy audit or implement an energy or environmental management system. The scheme will additionally provide partial compensation for electricity costs.

Further information about eligibility and application processes is available on the funding agency aws website. The programme will run for two years, offering financial relief to qualifying businesses. It combines grant support with mandatory investments in sustainability measures. Companies meeting the criteria can now access detailed guidelines and begin their applications.