The financial support allocated by the Flemish government for large CO2 emitters is set to increase from €36 million in 2019 to a record amount of nearly €270 million by 2025, reported De Standaard on Tuesday, referencing a parliamentary inquiry by Aimen Horch of the Green party to industry policy official, Minister-President Matthias Diependaele of the N-VA.
The funds are directed towards “compensation for indirect emission costs,” which assists energy-intensive companies facing higher electricity bills due to the European Emissions Trading System (ETS). Under ETS-1, companies must purchase emission allowances for each tonne of CO2 they emit. Revenues from these allowances flow back to Flanders, a portion of which is used to compensate for these indirect emission costs.
“If we don’t financially support our industrial companies with this mechanism, they will shut their doors in Flanders,” Minister-President Diependaele stated. In exchange, companies are required to present a climate plan, including mandatory investments in energy-saving measures. However, Horch argues that this requirement is ineffective, citing “no oversight whatsoever.”
Top beneficiaries include major firms such as ArcelorMittal, BASF, ExxonMobil, and TotalEnergies. Horch noted that ArcelorMittal is actively striving to produce green steel, which merits support. Conversely, he criticised Total and ExxonMobil for making significant profits in Belgium while ExxonMobil’s greenhouse gas emissions rose by nearly 10% between 2018 and 2023. Despite this, the company received over €15 million in climate subsidies in 2024.
