Published by Global Banking & Finance Review®
Posted on March 11, 2025
2 min readLast updated: January 24, 2026
Add as preferred source on GoogleThe EU is proposing looser state aid rules to boost clean technology investments, aiming to enhance competitiveness and support green projects. Feedback is open until April 25.
By Foo Yun Chee
BRUSSELS (Reuters) - European Union state aid regulators are seeking feedback from member countries on looser rules allowing governments to give grants and other financial incentives for clean technology projects and businesses to reduce their carbon footprint.
The easier rules, which are expected to be adopted in June and be valid until 2030, aim to boost EU companies and help them better compete with U.S. and Chinese rivals. They are part of a package announced last month to support energy-hungry industries.
The guidelines will also make it easier for pension funds, insurers and other private investors to co-invest in green projects.
"Investments are needed to further accelerate the roll-out of renewable energy, to deploy industrial decarbonisation, and to ensure sufficient manufacturing capacity of clean tech," the draft communication announcing the new rules said.
State aid allowed under the looser rules includes direct grants, tax advantages including tax credits and accelerated depreciation, and subsidised interest rates on new loans or guarantees on new loans.
Beneficiaries could include renewable energy and energy storage schemes, measures facilitating industrial decarbonisation and projects to manufacture batteries, solar panels, wind turbines, heat-pumps, electrolysers and carbon-capture usage and storage.
The rules would also allow EU governments to provide matching aid for large projects that may be diverted outside Europe by the lure of non-EU incentives or subsidies.
Third parties have until April 25 to provide feedback, after which the European Commission will refine the guidelines before adopting them.
(Reporting by Foo Yun Chee; Editing by Paul Simao)
The EU is proposing looser state aid rules to allow governments to provide grants and financial incentives for clean technology projects, aimed at boosting competitiveness against U.S. and Chinese companies.
The proposed rules will allow direct grants, tax advantages, subsidized interest rates on loans, and guarantees on new loans for clean tech projects.
Beneficiaries could include renewable energy schemes, energy storage projects, and initiatives for manufacturing batteries, solar panels, and wind turbines.
Third parties have until April 25 to provide feedback on the proposed guidelines before the European Commission refines and adopts them.
The easier state aid rules are expected to be adopted in June and will remain valid until 2030.
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