European Union

European Union

Adopts the framework to enable State aid for net-zero transition

09 Mar 2023

On 9 March 2023, the European Union adopted the Temporary Crisis and Transition Framework (TCTF) to accelerate support for net-zero transition sectors in alignment with the Green Deal Industrial Plan. This framework expands and revises the earlier Temporary Crisis Framework, enabling Member States to provide targeted aid in key areas. These include limited assistance for companies in the agriculture and fisheries sectors, compensation for high energy costs, and support for renewable energy deployment, industrial decarbonization, and investments in strategic clean technologies such as batteries, solar panels, and hydrogen.

The measures, with most provisions effective until the end of 2025, complement existing State aid tools, addressing energy market distortions and fostering sustainable economic growth. The TCTF was further amended on 20 November 2023 and 2 May 2024 adopting a limited prolongation of the provisions enabling Member States to continue to grant limited amounts of aid.