European Commission Consults on State Aid Rules for Clean Industrial Deal
Key Ideas
  • The European Commission is updating state aid rules to align with the clean industrial deal, providing flexibility for EU states in aiding decarbonisation and supporting clean technologies.
  • The draft allows for simplified tender procedures for renewables and energy storage, with a focus on granting aid without tender for less mature technologies like renewable hydrogen.
  • The proposed rules also enable investment in storage for renewable fuels of non-biological origin, biofuels, and biomass fuels, in compliance with the bloc's renewables directive.
  • The consultation period for the updated rules, which include support for clean tech manufacturing and private investment de-risking, is open until 25 April.
The European Commission has initiated a consultation on revising its state aid rules to harmonize with the bloc's proposed clean industrial deal, with a planned publication in June. The updated rules are expected to guide the commission's decisions on EU states' financing of projects until 2030, incorporating simplified tender procedures for renewables and energy storage. Notably, the draft emphasizes the potential for providing aid without tender for emerging technologies like renewable hydrogen. EU member states would have more options for supporting industrial decarbonisation, with choices between tender-based schemes, direct assistance, and revised criteria for large projects. Clean technologies eligible for aid include batteries, solar panels, wind turbines, and others, along with components and critical raw materials. The rules also permit investment in storage for various renewable fuels, biofuels, and biomass fuels, with conditions set by the renewables directive. While the focus on biofuels is not new, the scope of aid envisaged by the commission has broadened. Additionally, the rules aim to ensure parity with third countries in aid provision and support a range of projects fostering decarbonisation, renewables, and clean tech manufacturing. The consultation period concludes on 25 April, signaling the commission's commitment to streamlining rules for facilitating green transitions and stimulating private investments in sustainable industries.
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