NEW STATE AID FRAMEWORK
The European Commission adopted a new State aid framework to support the Clean Industrial Deal. The framework allows for support for a wide array of decarbonisation technologies, including electrification, biomass, hydrogen, and carbon capture utilisation and storage. It is intended to simplify rules for:
- the roll-out of renewable energy and low-carbon fuels;
- temporary electricity price relief for energy-intensive users to ensure the transition to low-cost clean electricity;
- decarbonisation of existing production facilities;
- the development of clean tech manufacturing capacity in the EU; and
- the de-risking of investments in clean energy, decarbonisation, clean tech, energy infrastructure projects and projects supporting the circular economy.
The framework replaces the Temporary Crisis and Transition Framework and will be in place until 31 December 2030.
COMMISSION SEEKS INPUT ON REVIEW OF THE STATE AID GENERAL BLOCK EXEMPTION REGULATION
The European Commission is calling for evidence and consulting until 6 October 2025 on its review of the General Block Exemption Regulation. The block exemption declares specific categories of State aid compatible with the internal market if they fulfil certain conditions, and exempts them from the requirement of prior notification to, and approval by, the Commission. This enables Member States to quickly provide aid, where conditions limiting the distortion of competition in the Single Market are met. The Commission is assessing the potential to further simplify and update the Regulation, in line with the EU's Competitiveness Compass and Clean Industrial Deal.
ROADS
The European Commission approved a Greek support measure for the construction of two motorway sections of the northern road axis of the island of Crete, part of the Trans-European Road Network. Part of the funding comes from the Recovery and Resilience Facility.
This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.
