Commission approves €60 million Croatian State aid scheme to support energy-intensive companies and reduce carbon leakage
The aid scheme will be in place until 2030 and supports companies in specific sectors that are energy-intensive and exposed to international competition such as iron, paper, steel or chemicals.
The aid will partially compensate the higher electricity prices due to the impact of carbon prices (‘indirect emission costs’) through the EU Emissions Trading Scheme (ETS). The aim is also to prevent these companies from relocating outside Europe. The aid will cover up to 80 per cent of beneficiaries’ indirect emissions costs incurred between 2025 and 2030. Beneficiaries must either meet at least 30 per cent of their electricity consumption from carbon-free sources, or invest at least 50 per cent of the aid amount in projects leading to substantial reductions in greenhouse gas emissions from their facilities, or invest at least 50 per cent of the aid amount in new or modernised assets in order to reduce electricity grid costs.
The Commission assessed the measure under article 107.3 c) and the ETS State Aid Guidelines as amended in December 2025 and founded that the measure is necessary, appropriate and proportionate. The decision will be made available under the case number SA.123819 in the State aid register.
For more information, see the Commission’s PR.