EU Commission clears $2.398-bn Finnish aid for net-zero transition
The European Commission recently approved a €2.3-billion ($2.398 billion) Finnish scheme to support investments in strategic sectors and to help industrial companies to decarbonise their production processes.
The scheme contributes to the achievement of the priorities of the Commission from 2024 to 2029 based on the political guidelines, which call for investments in clean energy and technologies.
The scheme was approved under the State aid Temporary Crisis and Transition Framework (TCTF) adopted by the Commission on March 9, 2023, and amended on November 20, 2023, and on May 2, 2024.
Finland’s scheme complements a €400-million Finnish scheme adopted on December 13, 2024, to help companies decarbonise their production processes and to support investments in strategic sectors.
It consists of three measures. The first will support investments in the production of energy from renewable sources (excluding electricity generation), electricity or thermal storage and storage of renewable hydrogen, biofuels, bioliquids, biogas, biomethane or biomass fuels.
The second measure will support the decarbonisation of industrial production processes by helping companies to reduce greenhouse gas emissions from their production processes by at least 40 per cent and reduce their energy consumption by at least 20 per cent, a release from the Commission said.
The third will support investments for the production of strategic equipment—batteries, solar panels, wind turbines, heat-pumps, electrolysers and carbon capture usage and storage, as well as key components designed and primarily used as direct input for the production of such equipment or related critical raw materials necessary for their production.
Under the scheme, the aid will take the form of a tax credit. The scheme will be open to all sectors, except credit institutions and other financial institutions.
The measures will be subject to safeguards to limit undue distortions of competition, including ensuring that there is no risk of relocation of investments within the European Economic Area.
