Consultations on the transformation of the Temporary Crisis and Transition Framework have begun

Plan działania na rzecz lepszego

The European Commission has begun consulting member states on a draft proposal to transform the Temporary Emergency and Transitional Framework for State Aid into a Temporary Emergency and Transitional Framework to facilitate and accelerate Europe’s green transition.

The temporary emergency framework, which applies until December 31, 2023, stipulates that member states may provide the following types of assistance:

  • Support a limited amount, in any form, to companies affected by the current crisis or the resulting sanctions and retaliatory measures;
  • Liquidity support in the form of state guarantees and subsidized loans;
  • Aid to compensate for high energy prices;
  • Measures to accelerate the introduction of renewable energy;
  • Measures to facilitate the decarbonization of industrial processes;
  • Measures to reduce electricity demand.

The draft proposal for an interim emergency and transitional framework is on the table to spur investment to accelerate the deployment of renewable energy and support the decarbonization of industry and equipment manufacturing necessary for the transition to carbon neutrality, while maintaining market integrity and a level playing field. The proposal is part of the Green Deal Industrial Plan and contributes to one of its pillars, which is to provide companies operating in the EU with faster access to financing.

In the prepared draft, the EC proposes the following changes, aimed at:

  • Additional facilitation of renewable energy deployment and industrial decarbonization by: promoting the use of all renewable energy sources, granting aid for the development of less advanced technologies (such as green hydrogen) without competitive bidding, but subject to safeguarding the proportionality of public support, and encouraging investments that lead to significant emissions reductions by raising the caps on aid and simplifying its calculation (for example, it would be defined as a share of investment costs);
  • Supporting investment in the production of strategic equipment necessary for the transition to zero-carbon to accelerate the transition to a zero-carbon economy and recover from the current energy crisis.

Information on the Temporary Crisis Framework can be found on the European Commission’s website.

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