Brussels, 13 December 2024
The European Commission has approved a €400 million Finnish scheme to help companies decarbonise their production processes and to support investments in strategic sectors, 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 (‘TCTF’), adopted by the Commission on 9 March 2023 and amended on 20 November 2023 and on 2 May 2024.
The scheme consists of two measures. The first measure will support the decarbonisation of industrial production processes by helping companies to reduce greenhouse gas emissions from their production processes by at least 40% and/or reduce their energy consumption by at least 20% (‘decarbonisation and energy efficiency measure’). This will be achieved through investments into electrification, the switch to renewable hydrogen or hydrogen-derived fuels, and energy efficiency measures. The second measure will support investments for the production of strategic equipment (namely batteries, solar panels, wind turbines, heat-pumps, electrolysers and 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 (‘measure for investments in strategic sectors‘). Under the scheme, the aid will take the form of direct grants. The scheme will be open to all sectors, except credit institutions and other financial institutions.
The Commission found that the Finnish scheme is in line with the conditions set out in the TCTF. In particular, the aid under the decarbonisation and energy efficiency measure (i) will not exceed €200 million per beneficiary; and (ii) will be granted under the condition that the project must be completed within 36 months. Furthermore, the aid under the measure for investments in strategic sectors will (i) incentivise the production of relevant equipment, key components and critical raw materials necessary for the transition towards a net-zero economy; and (ii) will be granted no later than 31 December 2025.
The Commission concluded that the scheme is necessary, appropriate and proportionate to accelerate the green transition and facilitate the development of certain economic activities in line with Article 107(3)(c) TFEU and the conditions set out in TCTF. On this basis, the Commission approved the scheme under EU State aid rules.
More information on the TCTF can be found here. The non-confidential version of the decision will be made available under the number SA.113721 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.