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Last week, the European Commission adopted a new Temporary Crisis and Transition Framework, which aims to support measures in key sectors for the transition to a net-zero economy. For reference, this Communication prolongs and amends the State Aid Temporary Crisis Framework which was first adopted in March 2022 following Russian’s invasion of Ukraine.

The new Framework retains the provisions in response to the immediate crisis situation, such as aid and to compensate high energy prices and supporting electricity demand reduction and prolongs them at least until 31 December 2023. The Commission will assess the need for an extension at a later stage.

The Commission also adopted provisions which would support investment and financing for clean technology production in Europe. Namely, the Framework prolongs the possibility for Member states to support schemes accelerating the roll out of renewable energy and energy storage until 31 December 2025. In addition, the Commission simplifies the conditions to grant to less mature technologies such as renewable hydrogen. The scope of the measures which can be supported is also expanded to cover more types of renewable energy sources. Finally, the framework includes a clause to prevent the risk of investments being diverted away from Europe by allowing Member States to give the same level of support for companies that they could get abroad.

Source: European Commission