The EU is supporting climate protection in Germany with billions in aid!

The EU is supporting climate protection in Germany with billions in aid!

The European Commission has published the new edition of the State Aid Scoreboard, which provides a comprehensive overview of state aid measures in the EU in 2023. Loud EcoNews Environmental protection and energy savings earned the greatest support from Member States this year. Executive Vice-President Teresa Ribera highlighted the positive impact of this aid on the competitiveness of European companies and the necessary transition to a net-zero economy.

With its aid policy, the EU is responding to the urgent challenges of climate change and energy supply. The current data clearly shows that state aid rules make a crucial contribution to promoting environmentally friendly initiatives.

New 5 billion euro plan for German industry

In this context, the European Commission has approved a regulation in Germany that provides support of 5 billion euros for companies in the EU emissions trading system (EU ETS). This regulation aims to promote the decarbonization of production processes in the industry EU representation in Germany. With this measure, Germany wants to achieve its energy and climate goals and at the same time initiate ambitious projects to reduce greenhouse gas emissions.

The funded projects will cover a wide range, including fuel conversion in the cement and lime industries as well as electrification and hydrogen-based production in the manufacturing sector. Aid recipients must demonstrate a reduction in greenhouse gas emissions of 60% within three years and 90% by the end of the funded project. Projects are selected through a competitive tender based on the lowest amount of aid requested per ton of CO2 emissions avoided.

Compatibility with EU regulations

According to the 2022 guidelines for state aid, these measures are compatible with EU rules as they promote economic activity and provide incentives for environmentally friendly practices. The European Commission examined the scheme and confirmed its need to promote decarbonization, while the measure has limited impact on competition and trade within the EU.

The new guidelines replace older regulations and are closely aligned with the objectives of the European Green Deal, which aim for a sustainable and climate-friendly economy. Member states are obliged to adapt existing regulations by December 31, 2023 to meet current requirements.

These latest developments show how important state aid is to advance climate protection and ensure competitiveness within the EU.