The European Union is reportedly preparing to introduce simpler state-aid rules aimed at boosting clean technology investments and enhancing the region’s industrial competitiveness in the face of growing competition from the US and China.
According to a Bloomberg report, the European Commission is set to unveil the Clean Industrial Deal on 26 February, alongside a new state-aid framework that will guide member states in supporting the transition to decarbonisation while ensuring competitiveness in the global market.
The proposed framework would provide member states with various tools, including grants, tax advantages, subsidised loans, and other incentives. The goal is to accelerate renewable energy deployment and strengthen manufacturing capacity for clean technologies.
To attract more private capital from sources like pension funds and insurers, the new rules would allow for the ‘de-risking’ of investments in clean-tech projects, as outlined in a draft document reviewed by Bloomberg. Additionally, national governments could offer tax incentives, such as accelerated depreciation for the acquisition of clean-tech assets.
Eligible projects for investment aid would include those related to electricity storage, solar, wind, and hydropower. The framework will also provide detailed criteria for granting such aid.
