The European Commission has announced looser state aid rules to accelerate green industrial projects and offer energy price relief for heavy industries, aiming to keep Europe competitive amid U.S. and Chinese pressure.
Businesses in the European Union will have greater access to state support for green transitions under new rules unveiled by the European Commission on Wednesday. The updated framework, valid through December 2030, is a core element of the Commission’s Clean Industrial Deal, a strategy designed to revitalise European industry and ensure it remains competitive on the global stage.
The changes make it easier for governments to offer aid in the form of direct grants, tax credits, subsidised loans, or loan guarantees for projects focused on reducing carbon emissions. Support can reach up to €200 million ($232 million) or be structured according to a project’s funding gap or the outcome of a competitive bidding process.
Private investors, such as pension funds and insurers, will also find it easier to co-invest in green initiatives under the revised rules.
Vice-President of the Commission Teresa Ribera said the new rules not only streamline decarbonisation efforts but position public support as a "strategic investment" in Europe’s future.
“It’s a tool to drive climate ambition, strengthen Europe’s resilience, and ensure our industry remains globally competitive,” she said.
Eligible projects include those focused on rolling out renewable energy and low-carbon fuels, along with broader investment schemes and capacity mechanisms. Meanwhile, heavy industries like cement and chemical production may apply for temporary electricity price relief, but only if they also commit to decarbonisation investments.
However, not all industry voices are convinced. Eurometaux, a metals industry association, argued the changes fall short of simplifying the regulatory landscape. Its Director General James Watson warned that the Clean Industrial Deal State Aid Framework does not fully deliver on the EU’s promises of prosperity and competitiveness.
“While we welcome the investment support for critical raw material production, it is crucial to ensure that all enabling conditions are in place to support a strong and sustainable metals sector in Europe,” Watson said.
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