European Commission

EU measures to facilitate state aid for clean technologies

European Commission presents measures to foster decarbonisation and support clean technologies up to 2030

From our correspondent Beda Romano

26 June 2025

3' min read

BRUSSELS - The European Commission today, Wednesday 25 June, presented measures to facilitate the disbursement of state aid in an effort to decarbonise industry, promote clean energy and develop green technology. Long overdue, the new regulatory framework will run from now until 2030. Among other things, it will allow member states to subsidise electricity bills for the most energy-intensive companies and help the production of new nuclear reactors.

"If Europe wants to be a leader in clean technologies, we must act with courage and clarity," said European Commission Vice-President Teresa Ribera. The new framework simplifies and accelerates support for decarbonisation, but goes further: it recognises the state as a strategic investor in our future. It is a tool to drive climate ambition, strengthen Europe's resilience and ensure that our industry remains globally competitive'.

In a nutshell, the new regulatory framework will allow for state aid in five areas: the development of renewable energy sources; the temporary relief of electricity bills for energy-hungry companies; the decarbonisation of existing production facilities; the creation of production capacity in the field of clean technology; and the reduction of investment risk in clean energy, decarbonisation, clean technology, as well as in energy infrastructure and circular economy projects.

State aid can also be used in sensitive areas, such as nuclear and gas (especially biogas). According to the European Commission's communication, support is only possible 'if the Member State demonstrates that there is no technologically mature alternative to natural gas, that alternatives to natural gas are not yet viable due to insufficient availability or infrastructure, or that decarbonisation will take place in stages'.

On the nuclear front, the EU executive ensures that it 'fully' recognises the right of member states to determine their own energy mix. Accordingly, 'the Commission will carry out a timely assessment of State aid cases for nuclear power generation, including small and advanced modular reactors, in order to ensure legal certainty for such aid (...) in full respect of technological neutrality'.

In essence, with this new regulatory framework, which replaces the 2022 framework created in the wake of the crises at the beginning of the decade, the Commission is attempting to strike a delicate balance between the obligation to maintain free market access and the need to help the emergence of a clean and competitive industry. Over the past few months, Germany has fought for maximum flexibility, particularly in helping the most energy-intensive companies.

According to many observers, the risk in these circumstances is to excessively help the competitiveness of countries with budgetary margins, while penalising the others, the most indebted ones. Financial support under the new regulatory framework can be granted on the basis of predefined aid amounts (for support up to EUR 200 million); on the basis of a funding gap; or on the basis of a competitive bidding procedure.

Today's announcement comes at a time when the Commission is soon expected to specify - with likely adjustments - the target of reducing harmful emissions by 90 per cent by 2040. The context is that of a more or less surreptitious revision of the Green Pact. At the centre of negotiations between the Council and the Parliament has long been a directive that should ban greenwashing (environmental window-dressing) by companies. At the very least, the Brussels proposal will be extensively revised.

Beda RomanoCorrispondente
- @BedaRomano
Luogo: Bruxelles
Lingue parlate: francese, tedesco, inglese
Argomenti: Affari europei
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