Industrial decarbonisation: EUR 1.2 billion Dutch State aid scheme approved
The Commission has approved a EUR 1.2 billion Dutch scheme (called ‘NIKI’) to support companies reduce greenhouse gas emissions across a product’s entire lifecycle, from raw material extraction to disposal. Support will be awarded to projects that deliver the greatest environmental impact at the lowest public cost, based on full lifecycle emissions.
Aid will be awarded through annual, competitive tenders over five years, based on the lowest cost per tonne of CO₂ reduced. The scheme is technology-neutral.
The Commission approved the scheme under the Guidelines on State aid for climate, environmental protection and energy 2022 (‘CEEAG’) considering it necessary and appropriate to support the industrial decarbonisation of the sectors covered by the scheme. It includes safeguards to limit competition distortions, such as a fair bidding process, aid linked to CO₂ reductions per euro, and a claw-back mechanism for excess profits.
The NIKI scheme is the first State aid initiative bringing together projects under Sections 4.1 and 4.4 of the CEEAG: those that cut emissions by decarbonising production, and those that reduce emissions through resource efficiency and circularity (e.g. using recycled or bio-based materials).
For more information, see the Commission’s PR.