The European Commission has green-lighted a €1 billion initiative in Portugal aimed at supporting investments for producing equipment essential for transitioning to a net-zero economy, aligning with the objectives of the Green Deal Industrial Plan.
This scheme has been authorized under the state aid Temporary Crisis and Transition Framework (TCTF) and will offer direct grants to companies involved in manufacturing critical hardware, including batteries, solar panels, wind turbines, heat pumps, electrolysers, and carbon capture utilization and storage technologies.
It will also support the production of key components primarily designed for these applications, as well as related critical raw materials.
The Commission determined that the Portuguese initiative meets the criteria established in the TCTF, highlighting that “the aid will incentivise the production of relevant equipment for the transition towards a net-zero economy; and will be granted no later than 31 December 2025.”
Margrethe Vestager, the European Commission's executive vice president responsible for competition policy, emphasized the importance of the initiative, stating, “This €1 billion Portuguese measure supports investments in strategic equipment to accelerate the transition to a net-zero economy. This includes batteries, solar panels, heat pumps, wind turbines, electrolysers, and carbon-capture usage and storage. This is in line with the objectives of the Green Deal Industrial Plan and the EU's climate neutrality target, whilst ensuring that competition distortions remain limited.”
