Belgian Subsidies for Natural Refrigerants in Industrial Cooling
Industrial companies in Belgium are increasingly looking to replace high-GWP refrigerants with natural refrigerants (like CO₂ and hydrocarbons) in their cooling systems. Doing so not only aligns with EU climate goals but can also unlock valuable subsidies and incentives. Belgian federal and regional authorities (Flemish and Walloon), along with EU programs, offer financial support to encourage adoption of climate-friendly cooling technologies. In this blogpost we will outline the current subsidies and upcoming programs available at each level.
Federal Incentives: Investment Deductions (Tax Relief)
At the federal level, Belgium’s support comes mainly via tax incentives for green investments. Companies can benefit from an increased investment deduction (“investeringsaftrek”) when they invest in energy-saving or climate-friendly equipment. For investments made in 2024, the deduction was about 15.5% of the qualifying investment cost. Notably, this scheme is becoming even more generous: starting 2025 the deduction rises to 30% for large companies and 40% for SMEs on eligible eco-investments. In practice, this means if an industrial firm installs a new cooling system that is energy-efficient or reduces greenhouse gas emissions (for example, switching from HFCs to a natural refrigerant system), it can deduct a substantial portion of that investment from its taxable profit. These deductions target investments serving renewable energy, energy efficiency, or a beneficial climate impact. To claim the tax break, the equipment must appear on an official list of approved “green” technologies and an attestation from the relevant regional agency is required. This federal measure is a key incentive and is being reinforced, the jump to 30–40% deduction in 2025 signals stronger support ahead for companies upgrading cooling systems to natural refrigerants.
(Note: Brussels-region companies also make use of this federal tax deduction scheme, as tax law is national. The new 2025 “thematic deduction” is implemented via regional energy agencies but applies across all regions. Aside from this tax incentive, the Brussels Capital Region’s direct grants focus mostly on building energy efficiency; there is no specific Brussels grant dedicated to industrial refrigeration upgrades as of now.)
Flanders: Ecologiepremie+ Subsidies and Strategic Support
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In Flanders, industrial firms can tap into the Ecologiepremie+, a regional subsidy for eco-friendly investments managed by VLAIO (Flemish Agency for Innovation & Entrepreneurship). The Ecologiepremie+ works with a Limitative Technology List (LTL) of green technologies, and it explicitly supports natural-refrigerant cooling installations. For example, installing a new cooling system (up to 300 kW) that uses natural refrigerants such as CO₂, propane, isobutane, propylene, ethylene, or ethane, instead of conventional HFCs, is eligible. To qualify, the project must include waste heat recovery from the cooling system for use in the company’s processes or heating, boosting overall efficiency. The subsidy covers a percentage of the investment cost (excluding VAT) and varies by company size and technology:
CO₂ or Hydrocarbon Systems (≤300 kW) – 15% of the cost for SMEs and 12% for large enterprises, when installing a new cooling system with natural refrigerant (excluding ammonia) plus heat recovery. This category was introduced in July 2024 to replace older “alternative refrigerant” subsidies, now with a mandatory heat-reuse component.
Ammonia (NH₃) Systems (≤300 kW) – 25% for SMEs and 20% for large companies, for new ammonia-based chillers (50 kW or larger) that include heat recovery. While ammonia is a long-established natural refrigerant, its use involves more complex safety requirements and handling protocols, particularly in the event of leaks, which can pose significant challenges for industrial sites.
These grants significantly reduce the capital burden of sustainable cooling. As one provider notes, the Ecologiepremie+ offers up to 40% subsidy for heat-recovery systems and around 25% for cooling installations using natural refrigerants like ammonia or CO₂. In practice, a Flemish SME adopting an ammonia or CO₂ cooling installation can get roughly a quarter of its investment reimbursed by the government. The total Ecologiepremie+ support is capped at €1 million per company over 3 years and cannot be combined with other public aids for the same costs.
Flanders also provides options beyond the standard Ecologiepremie+ for larger or special projects. The Strategische Ecologiesteun (STRES) is available for large-scale, enterprise-specific green projects over €1.5 million investment, this could apply if a company undertakes a massive cooling plant overhaul with innovative technology. There’s also the “GREEN” support program for certain energy-saving or green heat projects starting from €50,000 that either use technologies not on the Ecologiepremie list or involve applicants not eligible under Ecologiepremie+ (e.g. certain non-profits or large firms in excluded categories). These programs ensure that if a cooling project with natural refrigerants doesn’t fit into Ecologiepremie+ due to scale or eligibility, it may still find support through a tailored grant. Overall, the Flemish approach combines broad access via Ecologiepremie+ with these targeted schemes, creating a comprehensive incentive landscape for sustainable industrial cooling.
Wallonia: Energy Efficiency and Environmental Investment Aids
In Wallonia, companies can benefit from robust investment grants for energy efficiency and environmental protection, which cover upgrades like high-efficiency or low-emission cooling systems. The primary mechanism is a tiered investment subsidy (prime) under the “Utilisation durable de l’énergie” program, aimed at measures that save energy or integrate renewables in industrial processes. This would include installing a more efficient refrigeration system or one that uses a climate-friendly refrigerant with better performance. For eligible projects, the Walloon Region covers between 20% and 50% of the investment cost as a direct grant, depending on the size of the enterprise and the nature of the project. (Small companies and projects in certain development zones tend toward the higher end of that range.) In addition, companies approved for this scheme receive a property tax exemption for 3 to 5 years on the equipment, adding further financial relief. The basic conditions include having a business operation in Wallonia, falling under supported NACE sectors, a minimum investment of €25,000, and funding at least 25% of the project with private funds. There is no explicit list of technologies published in the summary, but investments in renewable energy production, high-efficiency cogeneration, or process energy savings all qualify, efficient industrial refrigeration generally falls under process energy savings.
Wallonia also offers a complementary environmental protection grant for investments that exceed regulatory environmental standards. If a company’s cooling upgrade is undertaken in anticipation of future stricter norms or to go beyond current environmental requirements, it may receive 10%–40% of the “extra” cost of that greener technology as a subsidy. For example, proactively replacing an old HFC chiller with a natural refrigerant system well before any ban might count as an adaptation to future EU F-gas rules. The exact percentage depends on timing and certifications (e.g. ISO 14001 or EMAS yield higher aid rates for going beyond compliance). This scheme also comes with a 3–5 year property tax break and is calculated on the surcoût (additional cost) of the eco-friendly option over a standard solution.
Beyond grants, Walloon companies have access to green financing tools. One notable example is the Easy’Green loan by SOWALFIN, a public funder, which provides attractively low-interest loans up to €1 million per project for SMEs investing in carbon-footprint reduction, including refrigeration upgrades to natural refrigerants. While not a subsidy, this helps companies finance the upfront cost until they can receive the regional aid or reap energy savings.
Overall, Wallonia’s incentives for natural refrigerant cooling are wrapped into broader energy efficiency programs. The combined subsidy (potentially 20–50%) and tax exemption can significantly cut the net cost of installing an efficient CO₂, ammonia, or hydrocarbon-based cooling system. Additionally, some of these aids are co-financed by European funds, allowing higher support rates in certain cases. For instance, EU regional development funding enables Wallonia to offer enhanced aid intensities, some investment grants in manufacturing sectors can reach that maximum 50% level thanks to EU co-financing. Companies should consult the Aides-Entreprises database (MIDAS) to see the latest terms and sector eligibility for these primes, as conditions and budgets are updated regularly.
European Union Programs and Upcoming Support
At the EU level, there aren’t generic “EU subsidy checks” for individual companies’ cooling installations, but European policies and funding programs strongly underpin the transition to natural refrigerants. Many of the regional aids mentioned are partially funded by the EU (via structural funds or recovery funds), reflecting European commitment to phasing down HFCs. The EU’s F-Gas Regulation mandates a steep reduction of HFC refrigerants by 2030, which in turn is pushing more national and regional incentive schemes to accelerate compliance. In other words, EU climate policy provides the impetus and some funding for member states (like Belgium) to introduce these subsidies.
Moreover, companies and industry groups in Belgium can benefit from EU-funded innovation and demonstration projects. For example, under the EU’s LIFE Programme, a project called NATURAL HVACR 4 LIFE was coordinated in Belgium to demonstrate sustainable HVAC&R solutions using CO₂ refrigerant. By piloting natural refrigerant systems and training technicians, this project, co-financed by the EU, helped pave the way for broader adoption of such technologies. EU research and innovation grants (through Horizon Europe) also regularly include calls for efficient cooling and heat-pump technology, where consortiums can obtain funding to develop next-generation refrigerant solutions. While these are not direct subsidies for a single company’s installation, they drive technological progress and can involve Belgian firms as partners or test sites.
Looking ahead, the funding landscape is expected to further favor climate-friendly cooling. The European Green Deal and programs like the Innovation Fund (for large decarbonization projects) are channeling resources into cutting industrial greenhouse gases, which includes refrigerant emissions. For instance, if an enterprise has an ambitious project (say, a large-scale CO₂ liquefaction with natural refrigerants or an innovative thermal storage coupled with heat recovery), it could seek support from such EU-level funds in addition to domestic subsidies. Also, as noted, Belgium is ramping up its incentives: the federal tax deduction jumping to 40% in 2025 and the updated Flemish Ecologiepremie+ list (effective July 2024) adding new categories for natural refrigerants are clear indicators of future policy direction. We may also see new schemes emerging (or existing ones expanding) as the EU moves towards stricter F-Gas limits, for example, training programs, low-interest green loans (like Belgium’s FRGE or EU’s InvestEU), or even upcoming calls specifically targeting HFC replacement in industries.
In summary, Belgian industrial companies have a strong financial incentive to adopt natural refrigerant cooling today, and that support is set to grow. By combining federal tax breaks, generous regional subsidies (Ecologiepremie+ in Flanders, energy/environment primes in Wallonia), and tapping into European funding initiatives, companies can significantly lower the cost of transitioning to sustainable cooling. With climate regulations tightening, leveraging these subsidies and programs now will not only future-proof operations but also yield direct economic benefits for forward-looking firms.