EU eases state aid rules to boost green projects, cut carbon footprint
The CISAF sets out the conditions under which member states can grant support for certain investments and objectives in line with European Union (EU) state aid rules, which exist to prevent government support leading to a company gaining a distortive advantage over its competitors.
The European Commission has adopted a new state aid framework supporting the Clean Industrial Deal to enable members to push forward clean energy development, industrial decarbonisation and clean tech. The framework that backs both renewables and low-carbon fuels will authorise aid schemes introduced by members to boost clean industry, enabling the swift rollout of individual aid.
Under the framework, the Commission will authorise aid schemes introduced by member states to boost clean industry, enabling the swift rollout of individual aid.
The CISAF will be in place until December 31, 2030, giving member states and businesses long-term predictability. It replaces the Temporary Crisis and Transition Framework (TCTF), which was in place since 2022.
The framework simplifies state aid rules in five main areas: the roll-out of renewable energy and low-carbon fuels; temporary electricity price relief for energy-intensive users to ensure the transition to low-cost clean electricity; decarbonisation of existing production facilities; the development of clean tech manufacturing capacity in the EU; and the de-risking of investments in clean energy, decarbonisation, clean tech, energy infrastructure projects and projects supporting the circular economy.
The new framework covers support for both renewable energy and low-carbon fuels.
The CISAF introduces simplified procedures to enable the quick roll-out of renewable energy schemes. Low-carbon fuels, such as blue and green hydrogen, also play a key role in reducing emissions. They support the transition for companies in 'hard-to-decarbonise' sectors, where more energy or cost-efficient options are not yet viable, an official release said.
New rules on flexibility measures and capacity mechanisms give member states additional tools to integrate intermittent renewable electricity sources into the energy supply, while ensuring consumers benefit from reliable electricity supply.
The CISAF defines 'target model' capacity mechanisms, where member states pay electricity providers to maintain standby capacity, which can qualify for 'fast-track' approval. Other designs will be assessed under the Climate, Environmental protection and Energy Aid Guidelines (CEEAG).
Member states may provide electricity price support for energy-intensive users and companies operating in sectors particularly exposed to international trade. This will allow member states to reduce the electricity costs of energy-intensive users that face higher costs than competitors in regions with less ambitious climate policies.
In return for receiving price support, companies will be required to invest in decarbonisation.
The framework allows for support for a wide array of decarbonisation technologies such as electrification, hydrogen, biomass, carbon capture utilisation and storage.
Support can be granted based on predefined aid amounts (for support up to €200 million), the funding gap or a competitive bidding process.
The framework also allows for support for the production and processing of critical raw materials necessary for clean technologies.
To safeguard cohesion between different regions in Europe, member states will be able to provide more support for projects in less advantaged regions, which are defined in regional aid maps.
In addition, the framework allows member states to stimulate demand for clean technology products by offering tax incentives, such as allowing companies to deduct the cost of clean technology investments from their taxable income more quickly.
Fibre2Fashion News Desk (DS)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
38 minutes ago
- Time of India
Oil prices dip to settle at 3-week low on US and China economic concerns
Oil prices eased on Friday and settled at a three-week low as traders worried about negative economic news from the US and China and signs of growing supply. Losses were limited by optimism US trade deals could boost global economic growth and oil demand in the future. Brent crude futures fell 74 cents, or 1.1 per cent, to settle at $68.44, while US West Texas Intermediate (WTI) crude fell 87 cents, or 1.3 per cent, to settle at $65.16. Those were the lowest settlement levels for Brent since July 4 and WTI since June 30. For the week, Brent was down about 1 per cent with WTI down about 3 per cent. European Commission President Ursula von der Leyen will meet US President Donald Trump on Sunday in Scotland. European Union officials and diplomats said they expected to reach a framework trade deal this weekend. The euro zone economy has remained resilient to the pervasive uncertainty caused by a global trade war, a slew of data showed on Friday, even as European Central Bank policymakers appeared to temper market bets on no more rate cuts. In the US, new orders for US-manufactured capital goods unexpectedly fell in June while shipments of those products increased moderately, suggesting business spending on equipment slowed considerably in the second quarter. Trump said he had a good meeting with Federal Reserve Chair Jerome Powell and got the impression that the head of the US central bank might be ready to lower interest rates. Lower interest rates reduce consumer borrowing costs and can boost economic growth and demand for oil. In China, the world's second-biggest economy, fiscal revenue dipped 0.3 per cent in the first six months from a year earlier, the finance ministry said, maintaining the rate of decline seen between January and May. Growing supplies? The US is preparing to allow partners of Venezuela's state-run PDVSA, starting with US oil major Chevron , to operate with limitations in the sanctioned nation, sources said on Thursday. That could boost Venezuelan oil exports by a little more than 200,000 barrels per day (bpd), news US refiners would welcome, as it would ease tightness in the heavier crude market, ING analysts wrote. Iran said it would continue nuclear talks with European powers after "serious, frank, and detailed" conversations on Friday, the first such face-to-face meeting since Israel and the US bombed Iran last month. Venezuela and Iran are members of the Organization of the Petroleum Exporting Countries (OPEC). Any deal that could increase the amount of oil either sanctioned country could export would boost the amount of crude available to global markets. OPEC said the joint ministerial monitoring committee (JMMC) scheduled to convene on Monday does not hold decision-making authority over production levels. Four OPEC+ delegates said an OPEC+ panel is unlikely to alter existing plans to raise oil output when it meets, noting the producer group is keen to recover market share while summer demand is helping to absorb the extra barrels. OPEC+ includes OPEC and allies like Russia. In Russia, the world's No. 2 crude producer behind the US, daily oil exports from its western ports are set to be around 1.77 million bpd in August, down from 1.93 million bpd in July's plan, Reuters calculations based on data from two sources show. In the US, energy firms this week cut the number of oil and natural gas rigs operating for the 12th time in 13 weeks, energy services firm Baker Hughes said in its closely followed report on Friday.
Time of India
an hour ago
- Time of India
Qatar threatened to cut EU LNG supplies over sustainability law
Qatar has threatened to cut gas supplies to the European Union in response to the bloc's due diligence law on forced labour and environmental damage, a letter from Qatar to the Belgian government, seen by Reuters, showed. Qatar is the world's third-largest exporter of liquefied natural gas (LNG), after the United States and Australia. It has provided between 12 per cent and 14 per cent of Europe's LNG since Russia's 2022 invasion of Ukraine. In a letter to the Belgian government dated May 21, Qatari Energy Minister Saad al-Kaabi said the country was reacting to the EU's corporate sustainability due diligence directive ( CSDDD ), which requires larger companies operating in the EU to find and fix human rights and environmental issues in their supply chains. "Put simply, if further changes are not made to CSDDD, the State of Qatar and QatarEnergy will have no choice but to seriously consider alternative markets outside of the EU for our LNG and other products, which offer a more stable and welcoming business environment," said the letter. A spokesperson for Belgium's representation to the EU declined to comment on the letter, which was first reported by German newspaper Welt am Sonntag. The European Commission also received a letter from Qatar, dated May 13, a Commission spokesperson told Reuters, noting that EU lawmakers and countries are currently negotiating changes to the CSDDDD. "It is now for them to negotiate and adopt the substantive simplification changes proposed by the Commission," the spokesperson said. Brussels proposed changes to the CSDDD earlier this year to reduce its requirements - including by delaying its launch by a year, to mid-2028, and limiting the checks companies will have to make down their supply chains. Companies that fail to comply could face fines of up to 5 per cent of global turnover. Qatar said the EU's changes had not gone far enough. In the letter, Kaabi said Qatar was particularly concerned about the CSDDD's requirement for companies have a climate change transition plan aligned with preventing global warming exceeding 1.5 celsius - the goal of the Paris Agreement. "Neither the State of Qatar nor QatarEnergy have any plans to achieve net zero in the near future," said the letter, which said the CSDDD undermined countries' right to set their own national contributions towards the Paris Agreement goals. In an annex to the letter, also seen by Reuters, Qatar proposed removing the section of CSDDD which includes the requirement for climate transition plans. Kaabi is also chief executive of QatarEnergy. Qatar Energy gas has long-term supply contracts with major European companies, including Shell, TotalEnergies and ENI.
&w=3840&q=100)
First Post
2 hours ago
- First Post
Can US, EU actually reach a trade deal? Trump says there's '50/50 chance or maybe less'
Brussels and Washington are reportedly nearing a potential agreement that could involve a 15 per cent US tariff on EU goods, with possible exemptions for key sectors read more US President Donald Trump sips Diet Coke from his wine glass after a toast, during a luncheon for world leaders at the 73rd session of the United Nations General Assembly in New York, US, September 25, 2018. File Image/Reuters US President Donald Trump on Friday (July 25) stated there was roughly a '50/50 chance, maybe less' of reaching an agreement with the European Union to lower import tariffs, as he spoke to reporters before departing the White House for Scotland. Trump, aiming to reduce US trade deficits, has threatened punitive tariff increases on numerous countries unless they secure trade deals with Washington by August 1. '90 deals in 90 days' His administration launched a '90 deals in 90 days' initiative in April, postponing higher duties, but has so far announced only five agreements, including with Britain, Japan, and the Philippines. 'I would say that we have a 50/50 chance, maybe less than that, but a 50/50 chance of making a deal with the EU,' Trump remarked. STORY CONTINUES BELOW THIS AD The EU's 27 member states have tasked the European Commission with negotiating to avoid steep US tariffs, with Trump warning of 30 per cent levies if no deal is reached by the end of the month. According to multiple diplomats, Brussels and Washington are nearing a potential agreement that could involve a 15 per cent US tariff on EU goods, with possible exemptions for key sectors. EU readies retaliatory sanctions package However, on Thursday, EU states approved a retaliatory package targeting $109 billion (93 billion euros) of US goods, set to take effect on August 7 if negotiations fail. Trump claimed that most of the trade deals he sought were nearly finalised, though he clarified that his focus was on sending letters to impose tariffs on trading partners, not on negotiating comprehensive free trade agreements. He noted that tariffs, paid by importers rather than the exporting country, effectively act as a sales tax passed on to US consumers. 'I don't want to hurt countries, but we're going to send a letter out some time during the week, and it's basically going to say, 'You're going to pay 10 percent, you're going to pay 15 percent, you're going to pay maybe less,' I don't know,' Trump explained. He added that his negotiators were working 'diligently' with EU counterparts but expressed frustration with Canada, threatening a 35 per cent tariff and stating, 'we haven't really had a lot of luck' in those talks. Trump also mentioned that the US and China, its third-largest goods trading partner this year, have the 'confines of a deal' in place. STORY CONTINUES BELOW THIS AD
