The European Commission has approved new measures via the Temporary Crisis and Transition Framework (TCTF) in support of the transition towards a net-zero economy. The Commission’s goal is to speed up investment and financing for clean tech production within the Union which, in turn, supports the European Green Deal as well as delivering on specific projects under the National Recovery Plans. The combination of an amended General Block Exemption Regulation (GBER) on state aid and the TCTF should assist in this and allow Member States more flexibility to design and implement support measures in sectors that are key for the transition to climate neutrality.
The newly adopted framework allows for:
- Member States to support non-mature technologies such as renewable hydrogen as well as the decarbonisation of industrial processes switching to hydrogen-derived fuels;
- Member States to no longer work through public procurement, speeding up adoption processes;
- Member States to take additional measures to speed up the energy transition with carbon-free technologies, energy storage and decarbonisation for a longer period of time;
- Member States to provide more support in an easier way for key technologies such as batteries, solar panels, wind turbines, etc. thanks to the relaxation in support of production and manufacturing processes;
- Member States to, in exceptional cases, provide highly targeted individual support in the event a real threat exists that a company would leave the European Union. Although safeguards are still in place, member states now have the possibility to provide sufficient support to convince companies to remain in the Union;
- SMEs and companies located in disadvantaged regions to obtain higher amounts of support.
The newly introduced measures will remain in force until December 2025, whereas the previously announced temporary measures remain (provisionally) in force until end of the year.
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