Published by Global Banking & Finance Review®
Posted on June 25, 2025
2 min readLast updated: January 23, 2026
Add as preferred source on GoogleThe EU has updated state aid rules to support green projects and reduce emissions, making it easier for industries to receive aid under the Clean Industrial Deal.
By Foo Yun Chee
BRUSSELS (Reuters) -Businesses will find it easier to get state aid for projects aimed at cutting their carbon emissions and to switch to green projects while heavy industries will benefit from temporary power price relief under looser rules announced by the European Commission on Wednesday.
The new state aid rules, valid until December 2030, are part of the Commission's goal to revitalise Europe's industries with its Clean Industrial Deal to help them better compete with U.S. and Chinese rivals and also encourage them to stay put in Europe.
The new rules will make it easier for pension funds, insurers and other private investors to co-invest in green projects.
However, industry association Eurometaux said more needs to be done to help European businesses and the new legislation did little to simplify the current regulatory landscape.
Under the new rules, state support can be direct grants, tax advantages including tax credits and accelerated depreciation, subsidised interest rates on new loans or guarantees on new loans.
The amount of state aid can be up to 200 million euros ($232 million) or based on the funding gap or as a result of a competitive bidding process.
Beneficiaries are projects to roll out renewable energy and low carbon fuels, investment aid schemes, direct price support schemes and capacity mechanisms.
Heavy industries such as chemicals or cement makers applying for temporary electricity price relief will have to invest in decarbonisation.
"The new framework simplifies and speeds up support for decarbonisation, but it goes further: it recognises the state as a strategic investor in our future," Commission Vice-President Teresa Ribera said in a statement.
"It's a tool to drive climate ambition, strengthen Europe's resilience, and ensure our industry remains globally competitive," she said.
Eurometaux Director General James Watson said, "the Clean Industrial Deal State Aid Framework fails to live up to the Commission’s political promises of 'prosperity and competitiveness'."
"While we welcome the investment support for critical raw material production, it is crucial to ensure that all enabling conditions are in place to support a strong and sustainable metals sector in Europe," he added.
($1 = 0.8624 euros)
(Reporting by Foo Yun Chee, additional reporting by Julia Payne; Editing by Benoit Van Overstraeten, Alexandra Hudson)
The new state aid rules are aimed at making it easier for businesses to receive support for projects that cut carbon emissions and switch to green initiatives.
Businesses can receive state aid of up to 200 million euros, based on the funding gap or through a competitive bidding process.
The new framework includes direct grants, tax advantages, subsidised interest rates on loans, and guarantees on new loans.
The new state aid rules are valid until December 2030.
Industry association Eurometaux expressed that more needs to be done to simplify the regulatory landscape and that the new legislation does not fully meet the needs of European businesses.
Explore more articles in the Headlines category
