The European Union is reportedly planning simpler state-aid rules to boost clean tech investments and improve the region’s industrial competitiveness against the US and China.
A report from Bloomberg has revealed that the European Commission is due to unveil the Clean Industrial Deal on 26 February.
This will be accompanied by a new state-aid framework setting out how member countries can support the move to decarbonisation while competing more effectively with global rivals.
Under the plan, member states will have grants, tax advantages, subsidised loans and other tools under their disposal, according to the report.
The aim is to accelerate the deployment of renewable energy and ensure sufficient manufacturing capacity of clean technologies.
In a bid to attract more private capital from pension funds and insurers, the new rules would offer member states a possibility of ‘de-risking’ of investments in portfolios or projects, according to a draft document seen by Bloomberg.
National governments would also be able to introduce tax incentives in the form of accelerated depreciation for the acquisition of clean-tech assets.
Projects that would be eligible for investment aid include electricity storage, solar, wind and hydropower.
The framework will include detailed criteria for granting the aid.