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Grant Analysis

Purpose & Target

The GREEN grant's core objective is to provide financial support to businesses in the Flemish Region that invest in transitioning from fossil fuels to green energy (vergroening and electrification) or in significantly improving the energy efficiency of their core industrial activities. This aims to reduce CO2 emissions and lower energy bills. The grant targets enterprises of all sizes, including SMEs, large companies, and non-profits with economic activity. It is SECTOR-AGNOSTIC in terms of the applicant's primary business but THEMATICALLY SPECIFIC to energy transition and efficiency within industrial processes. The geographic scope is strictly the Flemish Region of Belgium. Key filtering criteria include a minimum project cost of €50,000, and investments must go beyond legally required standards. The grant operates on an open call basis for the period 2023-2024, accepting applications until the end of 2025 or until the budget is exhausted.

Financial Structure

Funding Type and Calculation This grant provides financial support as a subsidy calculated on the 'ecological extra cost' (ecologische meerkost) of your investment. This is the additional cost incurred for achieving environmental objectives, compared to a classic, technically comparable standard investment that would not achieve the same environmental protection level. Grant Percentages (Funding Rate) The subsidy percentage varies depending on the size of your company (KMO or Large Enterprise) and the 'Ecoclass' (cost-effectiveness) of your project. Percentages are applied to the ecological extra cost:

Standard GREEN projects (electrification and energy efficiency improvements):
- KMO: 40% (Ecoclass A), 30% (Ecoclass B)
- Large Enterprise: 30% (Ecoclass A), 20% (Ecoclass B)
Renewable Energy Production projects (for certain 'greening' investments):
- KMO: 55% (Ecoclass A), 45% (Ecoclass B)
- Large Enterprise: 45% (Ecoclass A), 35% (Ecoclass B)

Maximum Grant Amount

The maximum total grant amount per company over the entire GREEN support period is €1,000,000. This amount can be allocated across multiple grant applications.

Eligible and Ineligible Costs

Eligible Costs: Costs directly related to the ecological investment, specifically:
- Engineering costs: For calculations and dimensioning of the chosen technology.
- Investment costs: The actual cost of the new equipment (must be depreciable over at least 3 years).
- Installation costs: For placing the installation.
- Total project costs (including engineering, investment, installation, pre-study, operational, and infrastructure costs) must be at least €50,000 for the project to be considered, although not all these cost types are ultimately subsidized.
Ineligible Costs: Operational costs, study costs, and general infrastructure works are not eligible for subsidy calculation, even if they contribute to the minimum project cost threshold. Refer to 'Eligibility Requirements' for a comprehensive list of excluded investments.

Payment Schedule

The support is paid out in two tranches of 50% after grant approval.
Payments are based on submitted invoices and/or financial lease contracts, along with proof of expenditure activation (e.g., depreciation tables or ledger extracts).

Cumulation Prohibition

This subsidy cannot be combined with any other form of government aid for the same eligible investment costs. This includes other VLAIO support, subsidies from VEKA (Flemish Energy and Climate Agency), investment deductions, Ecoboost loans, My Renovation Premium, etc.

Tax Exemption

Subsidies received under this measure are exempt from corporate tax, in line with Flemish economic expansion legislation for capital and interest subsidies granted for the acquisition or creation of intangible and tangible fixed assets.

Eligibility Requirements

Eligible Organizations

Small and Medium-sized Enterprises (KMOs): Defined as having fewer than 250 Full-Time Equivalents (FTEs) AND (an annual turnover of up to €50 million OR a balance sheet total of up to €43 million).
Large Enterprises (GOs): Defined as having 250 FTEs or more OR (an annual turnover exceeding €50 million OR a balance sheet total exceeding €43 million).
Non-profit organizations (vzw's): Must engage in an economic activity.
Natural persons: Who independently exercise a professional activity.
Legal entities: Including limited liability companies (NV, BV), cooperative companies (CV), general partnerships (VOF), limited partnerships (CommV), European Companies (SE), and European Cooperative Societies (SCE).

Geographic and Operational Requirements

Must have an operational base (exploitatiezetel) in the Flemish Region. If not yet established at the time of application, it must be established within one year of grant approval.
Must be registered in the Kruispuntbank van Ondernemingen (KBO) (Crossroads Bank for Enterprises) in the Flemish Region.
If part of the EBO Vlaanderen target group (Energy Policy Agreement), the company and all its relevant establishments must have joined and comply with the energy policy agreement.
The ecological investment must be for professional purposes and be operated and maintained by the applicant for five years after its completion.

Exclusions

Investments for primary agriculture, fisheries, and aquaculture are excluded. However, businesses primarily active in these sectors may receive support for investments in other non-primary activities (e.g., supporting services, ancillary activities like a B&B or dairy shop).
Companies with a public ownership stake of 50% or more are generally excluded, with exceptions for investments in heat networks, shore power, energy sharing, and industrial water treatment, provided they are privately financed.
Companies in financial difficulty ('ondernemingen in moeilijkheden') or those undergoing dissolution, cessation, bankruptcy, liquidation, or insolvency procedures are excluded.
Companies against whom a European procedure for the recovery of state aid is running are excluded.
Investments that are solely rented out or not used for professional purposes.
Investments that are legally mandatory (e.g., to comply with EU/Flemish norms, Energy Decree obligations, or environmental permit conditions) are not eligible. The investment must clearly go beyond what is legally required.
Investments in new fossil technologies are generally excluded, unless they involve the upgrading of residual heat.
Investments related solely to buildings, vehicle fleets, PV panels, wind turbines, or other electricity production are excluded.
Standard investments such as thermal insulation, efficient lighting, standard compressor speed control, building management systems, or sustainable car fleet management are also excluded.

Specific Project Requirements

The return on investment period for energy efficiency projects must be at least 2 years.
Total project costs (engineering, investment, installation, pre-study, operational, infrastructure) must be at least €50,000.

Application Process

Application Process: Two-Step Approach

Pre-application (Vooraanmelding):
- You must first submit an application form to request a preliminary discussion with a VLAIO business advisor.
- During this free and confidential consultation, your investment plans will be reviewed, and an initial indication of eligibility will be provided. You will also receive guidance on key focus areas for preparing a strong subsidy application.
Subsidy Application (online):
- After the preliminary discussion, you submit your formal subsidy application online via the VLAIO website (www.vlaio.be/nl/subsidies-financiering/green-investeringssteun).

Required Documentation & Materials When submitting your online application, you must upload the following documents: * Project Description: A detailed description of your project (in Word or PDF format), covering company activities, the planned ecological investments, a comparison to a standard investment, environmental/climate benefits, and environmental permit status. * Project Budget (Excel GREEN form): An Excel sheet detailing all CAPEX and OPEX costs, as well as the environmental impact of both the ecological and standard investments. * Company Size Determination: A document (in Word format) providing information to determine your company's size (KMO or Large Enterprise) according to the European SME definition and independence criteria. Application Timeline & Deadlines

Application Window: You can apply for GREEN investment support until end of 2025 or until the budget is exhausted. Applications are processed in order of submission date.
Project Start Date: The project may only begin on the first day of the month following the month in which the subsidy application was submitted. For example, if you submit on July 24, the earliest start date is August 1. This applies regardless of the subsidy approval date.
Project Start after Approval: The project must commence within twelve months after the subsidy is approved. Extensions are possible with sufficient justification to the minister.
Project Completion: The project must be completed within three years after the date of the decision to grant aid. Extensions are possible with sufficient justification.

Types of Support Offered

The primary support offered is financial funding in the form of a subsidy (20-55% of ecological extra cost).

Post-Award Requirements & Compliance

Project will be evaluated based on five assessment criteria (see 'Evaluation Criteria' section).
Funding is disbursed in two 50% tranches upon submission of invoices/financial lease contracts and proof of expenditure activation.

Evaluation Criteria

The project will be assessed based on five assessment criteria, which are detailed in the 'Vervolgstappen' section on the VLAIO website (not fully provided in the source material). Key aspects considered for evaluation include: * Cost-effectiveness (KE): Projects are categorized into two 'Ecoclasses' based on their environmental benefits per invested euro: * Ecoclass A: Projects achieving a high cost-effectiveness (KE ≥ 1.5). These receive a higher support percentage. * Ecoclass B: Projects achieving a lower but still sufficient cost-effectiveness (KE < 1.5 but > 0). These receive a lower support percentage. * Project Description Quality: The application must include a comprehensive project description detailing: * The enterprise's activities and the investment location. * The planned ecological investments and a comparable standard investment. * The project's explicit contribution to environmental and climate objectives, including a clear calculation of these benefits. * The status of relevant environmental permits. * A declaration on honor confirming that the ecological investments are not legally required and that no other aid has been requested or received for these specific investments. * Project Budget Accuracy: The provided Excel budget form ('projectbegroting') must accurately detail all CAPEX (capital expenditure) and OPEX (operational expenditure) costs, as well as the environmental impact for both the proposed ecological investment and a comparable standard investment. This includes mapping the input and output of the processes involved. * Receivability Check: VLAIO assesses applications based on specific receivability criteria related to: * Applicant eligibility at the organizational level (e.g., legal form, location, financial standing). * Project eligibility at the project level (e.g., scope, type of investment, meeting minimum thresholds). * Confirmation that the technology to be invested in falls within the scope of the GREEN call, meaning it surpasses standard technologies and is not explicitly excluded.

Compliance & Special Requirements

Regulatory and Legal Compliance

Applicants must ensure compliance with all applicable regulations in the Flemish Region for a period of five years after the completion of the ecological investment.
Investments must clearly exceed legally mandated standards (e.g., European or Flemish norms, obligations under the Energy Decree, or conditions outlined in environmental permits) to be eligible for support. Simply meeting legal requirements is not sufficient.

Ownership and Operational Requirements

The ecological investment must be intended for professional use and must be operated and maintained by the applying enterprise for a minimum of five years following its completion. The 'date of completion' is defined as the date of the last invoice, property acquisition deed, or signing of a financial lease agreement related to the investment.

Financial Structure Compliance

There is a strict prohibition against cumulating this subsidy with any other government aid for the same eligible investment costs. This ensures that the same project expenses are not double-funded by public sources.
The grant is exempt from corporate tax for capital and interest subsidies related to the acquisition or creation of fixed assets.

Special Considerations and Flexibility

Patrimoniumvennootschap (Asset Management Company): It is possible for ecological investments to be carried out by an asset management company belonging to the same group as the applicant. Specific conditions apply, including shared participation thresholds and defined roles for the operating company (applicant) and the asset management company regarding application submission, asset booking, and fund receipt.
Execution at a Third-Party Location: An applicant can carry out and operate ecological investments at a third-party company's location. Both the applicant and the third party must meet all eligibility criteria, including acceptable legal forms and not being in financial difficulty. The applicant must operate the investment for at least five years.
Program Context: The GREEN call is part of a broader support program for the 2023-2024 period. New ecology aid regulations (Besluit van de Vlaamse Regering ecologie-uitgaven of 19 April 2024 and ministerieel besluit of 30 June 2024) have been in effect since July 1, 2024.
Strategic Alignment: The program strongly emphasizes CO2 reduction, increasing energy efficiency, and transitioning from fossil fuels to green energy carriers or electrification, aligning with broader climate and energy goals in the Flemish Region.
Innovation Preference: While supporting practical investments, the grant explicitly states that supported technologies must exceed standard technologies, indicating a preference for more advanced or innovative solutions in energy transition.

Grant Details