Brussels, 4 March 2024
The European Commission has approved a €350 million Portuguese scheme to support investments for the production of equipment necessary to foster the transition towards a net-zero economy, in line with the Green Deal Industrial Plan. The scheme was approved under the State aid Temporary Crisis and Transition Framework, adopted by the Commission on 9 March 2023 and amended on 20 November 2023, to support measures in sectors which are key to accelerate the green transition and reduce fuel dependencies.
Under this measure, which will be fully financed through the Recovery and Resilience Facility, the aid will take the form of direct grants. The measure will be open to companies producing relevant equipment, namely batteries, solar panels, wind turbines, heat-pumps, electrolysers, equipment for carbon capture usage and storage, as well as key components designed and primarily used as direct input for the production of such equipment or related critical raw materials necessary for their production.
The Commission found that the Portuguese scheme is in line with the conditions set out in the Temporary Crisis and Transition Framework. In particular, the aid (i) will incentivise the production of relevant equipment for the transition towards a net-zero economy; and (ii) will be granted no later than 31 December 2025.
The Commission concluded that the Portuguese scheme is necessary, appropriate and proportionate to accelerate the green transition and facilitate the development of certain economic activities, which are of importance for the implementation of the Green Deal Industrial Plan, in line with Article 107(3)(c) TFEU and the conditions set out in the Temporary Crisis and Transition Framework.
On this basis, the Commission approved the aid measure under EU State aid rules.
Executive Vice-President Margrethe Vestager, in charge of competition policy, said:
“This €350 million Portuguese scheme is funded through the Recovery and Resilience Facility. It will provide key support to the production of strategic equipment needed for the transition towards a net-zero economy. The scheme will support these investments without unduly disturbing competition.
A press release is available online.
Source – EU Commission