On January 8, the European Commission approved France’s €2.9 billion scheme for supporting investment in green industries. The scheme, in line with the Green Deal Industrial Plan, aims to “foster the transition toward a net-zero economy.”
The aid will take the form of a tax credit and will be open to companies planning projects to invest in the making of:
- solar panels;
- wind turbines;
- heat pumps;
- key components for producing this equipment;
- critical materials required for their production.
The scheme was approved under a framework supporting measures in key sectors the green transition and reducing fossil fuel dependencies, known as the State aid Temporary Crisis and Transition Framework and adopted in March 2023,” the Commission explains in a press release.
The framework helps to speed up investment and financing for the production of clean technologies in Europe, also assisting Member States to “deliver on specific projects under National Recovery and Resilience Plans that fall within their scope.”
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The Commission explains that it found the French scheme to be in line with the conditions set out in the Temporary Crisis and Transition Framework:
- the aid is expected to encourage the production of strategic equipment for the transition to a net-zero economy;
- the amount of aid per beneficiary will not exceed the ceilings set out in the Temporary Crisis and Transition Framework; and
- it will be granted until 31 December 2025 at the latest.
According to the Commission’s conclusion, the scheme is “necessary, appropriate and proportionate to accelerate the green transition and facilitate the development of certain economic activities.”
“Thanks to the opportunities opened up by the Temporary Crisis and Transition Framework, Member States may support investment in key sectors for the transition to a net-zero economy,” Executive Vice-President in charge of competition policy Margrethe Vestager said, adding:
“The French tax credit scheme, which is targeted at batteries, solar panels, wind turbines and heat pumps, contributes to the achievement of Europe’s ambitious climate goals.”
Editor’s Note: The opinions expressed here by the authors are their own, not those of Impakter.com — In the Featured Photo: The European Commission Berlaymont Building, Brussels, Belgium. Featured Photo Credit: Alex-David Baldi.