The European Commission has approved a €1bn Portuguese scheme to support investments for the production of equipment necessary for the transition towards a net zero economy, in line with the Green Deal Industrial Plan.
The initiative was approved under the state aid Temporary Crisis and Transition Framework (TCTF).
The aid will take the form of direct grants open to companies producing harware such as 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.
The Commission found the Portuguese scheme is in line with the conditions set out in the TCTFm and in particular, “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”.
“This €1bn Portuguese measure supports investments in strategic equipment to accelerate the transition to a net-zero economy,” executive vice president in charge of competition policy Margrethe Vestager (pictured).
“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.”