Commission approves €380 million French state aid scheme to support the production of equipment to foster the transition to a net-zero economy

The European Commission has approved a €380 million French scheme to support the production of renewable energy and decarbonisation equipment to foster the transition to a net-zero economy. The scheme contributes to the achievement of the priorities of the European Commission for 2024-2029, based on the Political Guidelines, which call for investments in clean energy and technologies. The scheme was approved under the State Aid Temporary Crisis and Transition Framework (‘TCTF'), adopted by the Commission on 9 March 2023 and amended on 20 November 2023 and on 2 May 2024. 

The purpose of the scheme is to support investment for the production of batteries, solar panels, wind turbines, heat-pumps, electrolysers and equipment for carbon capture usage and storage, as well as for the production of their key components and the production or recovery of related critical raw materials. Under the scheme, the aid will take the form of direct grants and repayable advances.

The Commission found that the French scheme is in line with the conditions set out in TCTF. In particular, the aid will (i) not exceed the ceilings provided under the TCTF; and (ii) be granted until no later than 31 December 2025. The Commission concluded that the scheme is necessary, appropriate and proportionate to accelerate the green transition and facilitate the development of certain economic activities in line with Article 107(3)(c) TFEU and the conditions set out in TCTF. On this basis, the Commission approved the scheme under EU State aid rules.

More information on the TCTF can be found here. The non-confidential version of the decision will be made available under the number SA.117244 in the in the state aid register on the Commission's competition website once any confidentiality issues have been resolved.

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