The European Commission (EC) has greenlit a significant €1.1 billion (approximately $1.2 billion) scheme from Italy designed to boost the production of essential equipment aiding the transition to a net-zero economy. This move aligns with the objectives of the Green Deal Industrial Plan, aiming to reduce dependencies on fossil fuels and accelerate the shift towards sustainable energy sources. Approved under the State aid Temporary Crisis and Transition Framework, which was first introduced on March 9, 2023, and later amended on November 20, 2023, the initiative targets investments in sectors crucial for the green transition.

Italy's innovative measure will support the creation of equipment and materials critical for achieving a net-zero economy, including batteries, solar panels, wind turbines, and more. Funding for the project, partially sourced from the Recovery and Resilience Facility (RRF), will be distributed as direct grants to eligible companies.

The maximum grant per beneficiary stands at €150 million (approximately $164 million) but can rise to €200 million (approximately $218 million) or €350 million (approximately $382 million) for companies based in regions qualifying for additional support under specific EU provisions, the commission said in a press release.

The European Commission asserts that the Italian initiative complies with the criteria established in the Temporary Crisis and Transition Framework. It emphasises that the scheme will encourage the production of vital equipment and must be allocated by December 31, 2025.

The approval marks a crucial step towards expediting the green transition and fostering economic activities pivotal to the Green Deal Industrial Plan, thereby contributing significantly to the EU's sustainability and energy independence goals.

“This €1.1 billion Italian scheme, partially funded by the Recovery and Resilience Facility, will support the production of strategic equipment, namely batteries, solar panels, heat-pumps, wind turbines, electrolysers and carbon-capture usage and storage. These are key for the transition towards a net-zero economy. At the same time, the scheme ensures that possible competition distortions remain limited,” said Margrethe Vestager, executive vice-president in charge of competition policy.

Fibre2Fashion News Desk (DP)

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