New aid for the purchase of electric cars: this is how the new incentives from the Ministry of Industry are

Madrid1.000 million euros. With this figure under his arm, the Minister of Industry, Jordi Hereu, announced two measures at the press conference of the Council of Ministers: on the one hand, 400 million euros for direct aid for the purchase of electric vehicles; and, on the other hand, 600 million destined for subsidies so that industrial sectors improve their energy efficiency and reduce carbon emissions. "The reindustrialization of Spain will be done through the energy transition," declared the minister.

Direct aid for electric cars

Hereu has announced the bases for the new aid for electric cars, called Auto+, which aim to "incentivize" the demand for electric passenger cars, vans, light trucks, and motorcycles. According to data from the last month, the sale of electrified vehicles in the State was 23%, and the ministry's goal is to progressively increase this figure.

From the Ministry of Industry, they highlight that the automotive sector represents up to 10% of GDP and generates more than two million direct and indirect jobs. "Spain is the second largest vehicle manufacturer in Europe," they emphasize from Industry, so the Spanish government wants to provide aid to this sector to advance towards a process of "electrification".

How will these aids work? They will be applied retroactively from January 1 and are aimed at individuals, self-employed, SMEs, and micro-enterprises. They can be processed electronically once the subsidy bases are officially published. These aids, as explained by the minister, will work by percentages: if they meet the criteria of being electric, having an affordable car price (less than 35,000 euros), and being produced in Europe, they can opt for the maximum amount of money possible. They can reach, according to information provided by the ministry, 4,500 euros and 5,000 euros for vans. In the case of self-employed individuals, this aid can reach 6,000 euros, and for vans, up to 7,500 euros. If criteria are not met, the percentage of aid will be reduced. The total budget for these concessions will be 400 million euros.

Subsidies for industrial sectors

The other measure announced by Minister Hereu is 600 million in subsidies to compensate for indirect carbon emission costs. They are aimed at industrial sectors at higher risk of carbon leakage and "aim to compensate for the impact that the cost of emission allowances has on the cost of electricity". The idea is that, thanks to the subsidy, they will invest in energy efficiency measures and, at the same time, be more competitive against producers in other countries that bear a lower electricity cost. Industrial sectors that take advantage of this will have up to three years to prove that measures have been taken to favor decarbonization and improve energy efficiency after receiving the subsidy.

Minister Hereu explained at a press conference that the economic sectors benefiting from this line of aid are paper manufacturing, metallurgy, the chemical industry, or glass, as well as new sectors such as organic chemistry, fertilizers, or ceramic tiles, among others.