Flanders invests 2bn euros in sustainable future for industry
The Flemish government is investing 2 billion euros in future-proofing the region’s industry over the next 10 years, minister president Matthias Diependaele has announced.
Flanders first launched a pilot call for “transition contracts” last year, worth 70 million euros spread over 10 years. The call focused on investments in electric boilers and industrial heat pumps: key technologies to make energy-intensive heat processes in industry more sustainable.
The government is now structurally anchoring this initiative and significantly increasing the budget, to a programme offering 2 billion in support. “This means the largest support ever in Flanders within one programme for industry,” said Diependaele, who is also the minister for Innovation.
An investment budget of 100 million euros applies in 2028 and 200 million in 2029 and subsequent years. The budget will be used for “contracts for difference”. According to Diependaele, this is an “innovative form of government support that is fundamentally different from traditional subsidisation”.
"This means the largest support ever in Flanders within one programme for industry"
“Until now, support was focused on the construction of new technical installations; now we’re making them affordable during the usage phase as well,” he said. “This way, we contribute not only to investment costs but also to operating costs.”
The instrument makes it possible to finance operational costs over a longer period, offering industrial companies "financial breathing space" and enabling them to invest in new technologies.
The allocation of funds will be based on an auction system. The precise conditions for obtaining the funds will be defined in the short term in consultation with industry.
The focus will be on decarbonisation and electrification, particularly through carbon capture, utilisation and storage. The government has designated Fluxys C-grid as the operator of the CO2 transmission grid, and the company will manage the development of infrastructure for transporting captured CO2 to storage.
"We have to anchor industry in Flanders at all costs, it is the basis of our prosperity"
Employers’ organisation Voka has welcomed the investment. “It is of capital importance that the Flemish government substantially increases support for greening industry to 200 million euros a year,” said managing director Frank Beckx.
“If the government co-finances industrial investments in sustainability, the whole economy will benefit. We have to anchor industry in Flanders at all costs, it is the basis of our prosperity.”
#FlandersNewsService | © PHOTO IMAGEBROKER
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