SIMPLIFICATION OF STATE AID RULES
The Commission committed to simplifying State aid rules by June 2025 to accelerate the roll-out of renewable energy, deploy industrial decarbonisation and ensure sufficient capacity of clean tech manufacturing. We look at the background in our briefing here: Clean Industrial Deal: Crucial Role of the Energy Sector.
The Commission also is consulting until 25 April 2025 on its draft State aid Framework accompanying the Clean Industrial Deal. Adoption of the text is planned for June 2025. Once adopted, it will replace the Temporary Crisis and Transition Framework and remain in force until 31 December 2030. It addresses both renewable energy supports as well as electricity capacity mechanisms. It is proposed, for example, to ease certain standard requirements, like the mandatory bidding process to allocate State aid, with the aim of accelerating the use of the schemes once they are set up by Member States. A press release on the draft State aid Framework is available on the Commission's website.
RENEWABLE HYDROGEN
The Commission approved a €400 million Austria scheme, and a €36 million Lithuanian scheme, to support renewable hydrogen production, through the European Hydrogen Bank's "Auctions-as-a-Service" tool for the auction closing in 2025. Further information on the measures is available here: Commission approves Austrian and Lithuanian State aid schemes.
NUCLEAR REACTORS
Following an in-depth investigation, the Commission approved a revised Belgian support measure for the lifetime extension of two nuclear reactors. The support includes financial and structural arrangements, transfer of liabilities and risk-sharing legal protections. Further information on the Belgian measure is available here: Commission approves Belgian State aid measure.
SEMICONDUCTOR MANUFACTURING FACILITY
The Commission approved a €920 million German aid measure for the construction of a new semiconductor manufacturing plant in Dresden. The measure will allow Infineon to complete the MEGAFAB-DD project which will be able to produce a wide range of different types of chips. This new manufacturing plant will bring flexible production capacity to the EU and thereby strengthen security of supply, resilience and technological autonomy in semiconductor technologies. Further information measures is available here: Commission approves German State aid measure.
TRANSITION TO NET-ZERO ECONOMY
The Commission approved a €2.3 billion Finnish scheme to support investments in strategic sectors and to help industrial companies to decarbonise their production processes. Under the scheme, the aid will take the form of a tax credit. The scheme will be open to all sectors, except credit institutions and other financial institutions. Further information on the measure is available here: Commission approves Finnish State aid scheme.
CHEMICAL RECYCLYING OF PLASTIC WASTE
The Commission approved a €500 million French scheme to support the chemical recycling of certain types of plastic waste. The scheme will contribute to the EU's objective of circularity of production and consumption processes as part of a broader transformation of the industry towards climate neutrality. the aid will take the form of direct grants. Further information on the measure is available here: Commission approves €500 million French State aid scheme.
This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.
