The European Commission has approved a €2.7 billion Austrian program aimed at supporting companies in the industrial sector to decarbonize their production processes. 

Projects will be selected based on innovation and the efficient use of resources and energy. In addition, approved projects must rely solely on renewable energy sources. The level of aid requested per ton of greenhouse gas emissions avoided, along with qualitative criteria such as project maturity, economic and ecological sustainability, will also be considered. 

The plan will run until December 31, 2030, and is expected to save around 10.5 million tons of CO2 equivalent by 2040. 

According to the Commission, aid will be awarded through a competitive bidding process, with the first auction expected to launch this year. The support will take the form of direct grants, covering either investment costs (known as "investment grants") or both investment and operational costs ("transformation grants"). Recipients of investment grants will receive assistance for part of the investment costs aimed at reducing greenhouse gas emissions. 

Recipients of transformation grants will receive aid per ton of greenhouse gas emissions avoided, under contracts lasting up to ten years. The amount of aid will be adjusted annually to ensure it only covers the actual cost difference between fossil fuel-based and renewable energy-based production. 

According to the Commission, this program will contribute to Austria's National Energy and Climate Plan and the European Green Deal objectives, while also helping reduce dependence on Russian fossil fuels, in line with the REPowerEU Plan. 

Austria has notified the Commission that this plan supports its industrial decarbonization goals and aims to achieve climate neutrality by 2040.