The European Commission has greenlit a €300 million initiative from France designed to bolster companies that invest in utilizing solid recovered fuels, aligning with the Green Deal Industrial Plan aimed at transitioning towards a net-zero economy.
This approval was granted under the State Aid Temporary Crisis and Transition Framework, established on March 9, 2023, aiming to facilitate measures in pivotal sectors to hasten the green transition and diminish fuel dependencies.
This framework, which modifies and extends aspects of the Temporary Crisis Framework from March 23, 2022, allows Member States to economically assist in the current geopolitical crisis context and has undergone amendments in July and October 2022.
France has outlined a €300 million scheme under the framework to back companies investing in solid recovered fuels (energy sourced from mixed municipal waste and a potential alternative to fossil fuels) to promote a transition to a net-zero economy.
The initiative welcomes entities utilizing newly installed or upgraded capacities employing solid recovery fuels, which are comprised of at least 50% renewable waste, like residual food or compostable garden waste.
The Commission acknowledged the French initiative’s alignment with the Temporary Crisis and Transition Framework’s conditions, ensuring that the aid (i) promotes the use of solid recovery fuels with a minimum 50% renewable waste content towards achieving a net-zero economy and (ii) will be allocated no later than December 31, 2025.
The Commission determined that the French scheme is vital, suitable, and balanced to expedite the green transition and stimulate the growth of specific economic activities crucial for realizing the REPowerEU Plan and the Green Deal Industrial Plan.
Consequently, the Commission sanctioned the aid measure according to EU State aid rules.
