Austria presents €5.7bn scheme to aid industry greening

By Nikolaus J. Kurmayer | EURACTIV.de

12-10-2022

Austria is co-governed by the Greens, for whom climate neutrality by 2040 is a priority. Struck by the energy crisis, the government hopes to seize the momentum and speed up the transition away from fossil fuels in industry. [EPA-EFE/NEIL HALL]

Languages: Deutsch

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The government will support industry's transformation in a bid to meet the country's 2040 net-zero emission target by focusing on supporting new ways of production, increasing energy efficiency, environmental protection and research.

"We are changing the fuel – coal and natural gas are going out, green electricity and hydrogen are coming in," said Climate Protection Minister Leonore Gewessler on Tuesday.

"This secures our competitiveness, makes us independent of Russian natural gas and protects our climate," she said. Industry makes up about 28% of Austria's GDP.

For slow-moving sectors like industry, 2040 is coming soon. From the industry's perspective, "2040 is tomorrow," said Vice-Chancellor Werner Kogler.

€3 billion will be spent on eliminating fossil fuels and thus greenhouse gas emissions, starting with €175 million in 2023 and then another €400 million annually.

The main instrument is to be "contracts for difference", where the government steps in to cover the price difference between traditional and greener production methods until parity is reached.

The second significant tranche of money will support energy efficiency measures, at €190 million annually until 2030. Domestic environmental protection will receive €600 million total, with the same amount going towards support for research on life science, semiconductors and cars.

(Nikolaus J. Kurmayer | EURACTIV.de)

Languages: Deutsch

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