EU Countries Increase Support for Green Industry

EU Countries Increase Support for Green Industry EU countries may provide greater public support for measures needed to decarbonise industry by the end of 2025. The European Union (EU) has modified its existing rules to enable member states to increase public support for investments in green industry. The European Commission announced that public support rules have been amended to facilitate and accelerate the green and digital transition, and a new temporary crisis framework has been adopted to encourage support for sectors that are key to the transition to a net-zero emissions economy. Following the changes to public support rules, member states will be able to support sectors that are critical to climate-friendly transformation and the transition to net-zero emissions industry in a more extensive and flexible manner. In alignment with the European Green Deal Industrial Plan, investment and financing in clean technology production will be accelerated. Public support will be increased and accelerated in areas such as renewable energy, decarbonisation, green transport, biodiversity, renewable hydrogen and energy efficiency. The amounts of aid available for important research and development projects involving multiple countries will be raised. Under the new framework, member states will also be able to provide greater support for measures needed to decarbonise industry by the end of 2025. In particular, programmes for renewable energy, energy storage and decarbonisation of industrial production processes will be accelerated. The conditions required for providing aid to projects will be simplified. Support opportunities for the installation of all types of renewable energy sources will be expanded. The ceiling amounts for public aid will be raised and calculations will be simplified. Under normal circumstances, determining how EU member states will provide public support falls within the authority of the European Commission. EU countries can only use public support in ways that do not harm competition and in cases that serve the public interest. The EU is concerned that major industrial investments are increasingly relocating to countries offering greater support and lower energy prices. Last month, the EU prepared a plan to protect its companies against the substantial subsidies for green industry provided by countries such as the United States and China. Source