On 18 December 2024, the European Commission approved a EUR 3 billion (USD 3.1 billion) state aid measure from France. The scheme provides support in the form of financial grants to companies subject to the EU Emission Trading Scheme (ETS) to reduce their greenhouse gas emissions. The scheme will be in place for 15 years.
The stated objective is to support French industrial companies in lowering their CO2 emissions during manufacturing through various methods, including electrification, CCS (carbon capture and storage), CCU (carbon capture and use), and measures to improve energy efficiency.
Companies operating in EU ETS-regulated industries - including chemical, metal, construction materials, and food processing sectors - can apply for support. To qualify, projects must take place at existing industrial facilities and achieve carbon emissions reductions that surpass current ETS benchmark standards.
In this context, Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition, said: "The scheme approved today will support projects that will significantly reduce the greenhouse gas emissions of industrial production processes in France. It will contribute to the EU’s objective of reaching climate neutrality by 2050, while ensuring that any potential competition distortions are kept to the minimum".
The Commission decided not to raise objections to the aid on the grounds that it is compatible with the internal market pursuant to Article 107(3)(c) of the Treaty on the Functioning of the European Union.
As of December 2024, the European Commission has not published its decision.
source: globaltradealert.org
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