BRUSSELS (Reuters) – European companies will be able to benefit from state aid equivalent to the tax credits granted by the United States via its Inflation Reduction Act (IRA) intended to encourage the “green transition”, according to a relaxation of the rules announced Thursday by the European Commission.
These more flexible rules will apply to projects aimed at accelerating the transition to renewable energies or energy storage, as well as the decarbonisation of industrial production, with the objective that European companies do not cross the Atlantic to receive public aid.
This is a new measure taken by Brussels to further free Europe from its dependence on American and Chinese technologies and products.
A bill entitled Carbon Neutrality for Industry plans to speed up the granting of permits for “green” projects. Another text, devoted to critical raw materials and to be published on March 14, is intended to promote recycling and diversify sources of supply.
The European Commission has said that government aid may be granted in the face of a real risk of seeing investments leave Europe.
“Member states will be allowed to provide the amount of support that the beneficiary could receive for an equivalent investment elsewhere,” the EU executive said in a statement.
Brussels also authorizes EU governments to provide the necessary credits to encourage companies to choose Europe for their financing projects.
A deadline, at the end of 2025, has been set for member countries of the bloc to implement “green” projects and benefit from the relaxed rules.
(Report by Foo Yun Chee; French version Tangi Salaün and Jean Terzian, edited by Blandine Hénault and Matthieu Protard)
