Government maneuvers to pay for new gas pipeline with tax on energy companies and with EU help

Spain and France are working against time to have the first detailed technical study of the project to build an underwater gas pipeline between Barcelona and Marseille ready in less than a month. The aim of both countries is to reveal to the public the unique features of the new cylinder, which will be used to transport gas first and then green hydrogen, within the framework of the Euro-Mediterranean summit to be held in Alicante on 8 and 9 December.

The open interest of both countries in accelerating technical work is not only the result of the celebration of the international diplomatic summit in early December. this The rush is also directly related to determining how and who will pay for new infrastructure work.Up until now it was nicknamed BarMar, but may soon be known as H2 Med.

Spanish and French governments Until December 15 to submit its candidacy to the European Commission for consideration of the new gas pipeline as a project of common interest (PIC) was received this Friday by Teresa Ribera, Vice President and Minister for Ecological Transition. Achieving the PIC category allows for simplified procedures for authorization and regulation of energy projects, as well as direct financial assistance from the EU’s Connecting Europe Mechanism.

The Spanish Government does not intend to only partially finance the construction of the future gas pipeline by obtaining community funds. Maneuvers to be able to do at the same time Allocate some of the revenue from the new tax to large energy companies to pay for the cost of new infrastructure.

new tax

The parliamentary groups that support the coalition government, the PSOE and United We Can, have added a number of amendments to the bill to create new temporary taxes on energy companies, banks and large fortunes. Among the changes proposed by both parties, the new text details what revenue from the tax will be allocated to major energy groups (4,000 million in two years, according to government estimates) and allows it to be used for incentive cross-border projects. energy autonomy of the country: namely BarMar.

If the government gets enough parliamentary support to implement the proposed law for new taxes on the proposed terms, it will be able to divest some of this millionaire’s collection to fund a future gas pipeline with France. As stated in the amendments, The executive can allocate these funds to pay for “financial support measures to improve energy autonomy” through “projects with a cross-border dimension”.”, investments in line with the targets set in the European roadmap to reduce its dependence on Russian hydrocarbons, especially in the REPowerEU community strategy.

The tax, promoted by the PSOE and United We Can coalition government and currently being processed at the Congress of Deputies, aims to tax the incomes of major Spanish energy companies (with a turnover of more than 1000 million euros) at 100 percent. 1.2%. euro) in the next two years. The tax will only be applied temporarily in 2023 and 2024, but will affect companies’ accounts corresponding to the previous year, 2022 and 2023 results.

The estimate handled by the government envisages a collection of 4,000 million euros for the two years that the tax will be in effect, with 2,000 million per year in which the tax will be applied, thanks to the new energy tax. energy will be in effect. 2022 and 2023 benefits).

The underwater tube of the future

In recent months, the Spanish government has been putting pressure on France, with German support, to overcome Paris’ reluctance to launch a new gas pipeline between the two countries via the Pyrenees and reviving the old MidCat project. In the end, this old Pyrenean venture will not be revived, but Spain and France have decided to build a new underwater gas pipeline between Barcelona and Marseille to be used later to transport green hydrogen.

The technical and budgetary details of the new project are not yet clear and important details will not be revealed until the Euro-Mediterranean summit, but the aim is that the new infrastructure will serve to significantly increase the capacity to send gas between the two countries. about five or seven years.

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