Heavy industry must not swallow up Flemish climate fund

Carbon Market Watch warns that heavy industry is projected to consume 60-80% of Flanders' EU ETS revenues between 2024 and 2030 through indirect cost compensation subsidies. The author argues these subsidies support the status quo and lack environmental safeguards, noting that a 2021 Deloitte report found no expected impact on employment or relocation if such subsidies were reduced. The document proposes capping industrial funding at 30% of ETS revenue to protect funds for transport and housing transitions.

• Between 2024 and 2030, indirect cost compensation (ICL) subsidies for heavy industry are projected to consume between 60% and 80% of the EU ETS revenue earmarked for Flanders.
• Flanders is expected to receive approximately €2.4 billion (52% of Belgium's total) in ETS auction revenues for the 2024-2030 period, with official estimates suggesting nearly €1.5 billion of this will be spent on industrial compensation subsidies.
• The subsidies benefit a small group of roughly 30 companies, with TotalEnergies projected to receive over €120 million, yet a 2021 Deloitte report indicated that reducing or abolishing ICL would not likely affect employment or cause relocation.
• The author proposes a funding model where industrial transition is capped at 30% of incoming ETS revenue (approximately €100 million per year), leaving 70% (nearly €1.5 billion) for transitions in housing and transport.

APA

Bollen, Y. (2024). Heavy industry must not swallow up Flemish climate fund. Carbon Market Watch. https://carbonmarketwatch.org/2024/08/07/heavy-industry-must-not-swallow-up-flemish-climate-fund/

Chicago

Bollen, Yelter. Heavy industry must not swallow up Flemish climate fund. Carbon Market Watch, 2024. https://carbonmarketwatch.org/2024/08/07/heavy-industry-must-not-swallow-up-flemish-climate-fund/.

Wikipedia

{{cite press release |last1=Bollen |first1=Yelter |title=Heavy industry must not swallow up Flemish climate fund |publisher=Carbon Market Watch |date=7 August 2024 |url=https://carbonmarketwatch.org/2024/08/07/heavy-industry-must-not-swallow-up-flemish-climate-fund/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{bollen2024heavy, author = {Bollen, Yelter}, title = {{Heavy industry must not swallow up Flemish climate fund}}, publisher = {Carbon Market Watch}, year = {2024}, month = aug, url = {https://carbonmarketwatch.org/2024/08/07/heavy-industry-must-not-swallow-up-flemish-climate-fund/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }