"From now on, Portugal can use up to €275 million to partially reimburse electro-intensive industries for the costs incurred due to rising electricity prices between 2021 and 2030," adds the ministry, led by Maria da Graça Carvalho, in the same statement.

The support is directed at industries "in strategic sectors" of the economy, such as "metallurgy, chemicals, and paper," the ministry explains, emphasizing that these are "particularly exposed to fluctuations in electricity prices."

The objective of this support is to "compensate the energy-intensive sector for the increase in electricity prices, resulting from carbon costs in the European CO2 emissions market," it adds.

The increase in electricity prices is a result of carbon costs in the European carbon dioxide (CO2) emissions market, under the EU Emissions Trading Scheme.

"We are protecting national industries that are committed to the energy transition," emphasizes the Minister of Environment and Energy, Maria da Graça Carvalho, quoted in the statement.

According to the Government, the compensation "is granted for indirect emissions costs incurred in the previous year, and if requests exceed the available budget, the amount is reduced proportionally for each beneficiary."