State aid: Commission adopts Temporary Crisis and Transition Framework to further support transition towards net-zero economy

The European Commission has adopted a new Temporary Crisis and Transition Framework to foster support measures in sectors which are key for the transition to a net-zero economy, in line with the Green Deal Industrial Plan.

The new Temporary Crisis and Transition Framework amends and prolongs in part the Temporary Crisis Framework, adopted on 23 March 2022 to enable Member States to support the economy in the context of Russia’s war against Ukraine and already amended on 20 July 2022 and 28 October 2022.

The new Temporary Crisis and Transition Framework: (i) prolongs the possibility for Member States to further support measures needed for the transition towards a net-zero industry, in particular schemes for accelerating the rollout of renewable energy and energy storage, and schemes for the decarbonisation of industrial production processes, which Member States may now set up until 31 December 2025; (ii) amends the scope of such measures to make them even easier to design and more effective; and (iii) introduces new measures, applicable until 31 December 2025, to further accelerate investments in key sectors for the transition towards a net-zero economy, enabling investment support for the manufacturing of strategic equipment.

Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “State aid rules, and in particular the Temporary Crisis Framework, have helped Member States cushion the impact of the current crisis in Europe. The Framework that we have adopted gives Member States the option to give State aid in a fast, clear and predictable way. Our rules enable Member States to accelerate net-zero investments at this critical moment, while protecting the level playing field in the Single Market and cohesion objectives. The new rules are proportionate, targeted and temporary.”