The compensatory aid provided for by the Flemish government for major CO2 issuers increased from 36 million euros in 2019 to a record amount of almost 270 million in 2025. This was reported on Tuesday the Journal de Standaard, on the basis of a parliamentary question posed by the Flemish deputy Aimen Horch (Groen) to the Minister-President Matthias Diependele (N-VA) industrial.
It is the “compensation for indirect costs linked to emissions”, that Flanders grants companies with high energy consumption that see their electricity bill increase due to the European emission quota exchange system (ETS), explains from Standaard. ETS-1 companies must buy emission rights for each tonne of CO2 they reject. Revenues from these ETS rights return to Flanders, which uses part to compensate for these indirect emission costs.
“If we stop supporting our industrial companies financially with this mechanism, they will close their doors in Flanders,” said Minister-President Diependele. In exchange, companies must present a climate plan “with the obligation to invest in energy saving measures”, he specifies. But according to Aimen Horch, it is useless. “There is no control,” accuses the Flemish environmental member.
Among the ten main beneficiaries are large companies such as EcelorMittal, Basf, Exxonmobil and Totalenergies. “A company like ArcelorMittal has real efforts to produce green steel, so we want to support it,” comments Aimen Horch. “But Total and Exxonmobil make colossal profits in Belgium. Meanwhile, Exxonmobil greenhouse gas emissions increased by almost 10 % between 2018 and 2023. And yet, in 2024, it received more than 15 million euros in climate grants. »»
