The European Commission has approved a €1.2 billion Dutch scheme to support companies in reducing lifecycle greenhouse gas emissions. The scheme focuses on projects that provide the largest environmental benefits at the lowest cost to taxpayers.
The NIKI scheme introduces competition between direct decarbonisation projects and efficiency and circularity projects. It aims to contribute to the Netherlands decarbonisation goals, in line with the Political Guidelines of the European Commission for 2024-2029.
The Dutch Scheme
The scheme is open to companies in the manufacturing sector, waste management, and remediation activities within the Netherlands. Projects must achieve lifecycle GHG emission reductions of at least 100,000 tonnes.
Projects will be selected through a competitive bidding process. The scheme is technology-neutral.
Commissions Assessment
The Commission assessed the scheme under EU State aid rules. It is the first scheme to bring together projects under Sections 4.1 and 4.4 of the CEEAG, selected through a joint competitive bidding process.
The Commission concluded that the scheme is necessary and appropriate for industrial decarbonisation and has positive effects that outweigh potential competition distortions.
Background
The CEEAG provide guidelines on assessing aid measures for environmental protection.