EU Commission clears French plan to back manufacturing decarbonisation

The scheme was approved under the State aid Temporary Crisis and Transition Framework, adopted by the Commission on March 9, 2023, and amended on November 20 last year and on May 2 this year.

France notified to the Commission the scheme to support investments in electrification of industrial processes and investments in energy efficiency.

Under this measure, the aid will take the form of direct grants amounting to up to 30 per cent of the project's investment costs. The measure will be open to companies active in the manufacturing sector in France.

Eligible electrification projects must lead to a reduction of GHG emissions from industrial processes of at least 40 per cent compared to now, while energy efficiency projects must lead to a reduction in the energy consumed in industrial processes of at least 20 per cent compared to today.

For investments relating to activities covered by the EU Emission Trading System (ETS), the emissions reduction must go below the relevant ETS benchmarks in force at the time of granting the aid, an official release said.

The Commission found that the French scheme is in line with the conditions set out in the Temporary Crisis and Transition Framework.

The aid must not enable the beneficiaries to increase their production capacity beyond 2 per cent compared to today.

Fibre2Fashion News Desk (DS)