The European Commission has approved a €2.9 billion French scheme for supporting investment in green industries (tax credit for investment in green industries) to foster the transition towards a net-zero economy, in line with the Green Deal Industrial Plan. The scheme was approved under the State aid Temporary Crisis and Transition Framework, adopted by the Commission on 9 March 2023 and amended on 20 November 2023, to support measures in sectors which are crucial for accelerating the green transition and reducing fossil fuel dependencies.

The French measure

France has notified to the Commission, under the Temporary Crisis and Transition Framework, a €2.9 billion scheme for supporting investment in green industries to foster the transition to a net-zero economy.

Under this measure, the aid will take the form of a tax credit. The measure will be open to companies which plan projects to invest in the production of solar panels, batteries, wind turbines and heat pumps, as well as key components for producing this equipment and critical materials required for their production.

The Commission found that the French scheme is in line with the conditions set out in the Temporary Crisis and Transition Framework, in particular (i) the aid is expected to encourage the production of strategic equipment for the transition to a net-zero economy; ii) the amount of aid per beneficiary will not exceed the ceilings set out in the Temporary Crisis and Transition Framework; and (iii) it will be granted until 31 December 2025 at the latest.

The Commission concluded that the French scheme is necessary, appropriate and proportionate to accelerate the green transition and facilitate the development of certain economic activities, which are of importance for the implementation of the REPowerEU Plan and the Green Deal Industrial Plan, in line with Article 107( 3)(c) TFEU and the conditions set out in the Temporary Crisis and Transition Framework.

On this basis, the Commission approved the aid measure under EU State aid rules.

Source: European Commission