Commission approves EUR 2.3 billion Finnish State aid to accelerate transition to a net-zero economy

Today, the European Commission (Commission) has approved a EUR 2.3 billion state aid scheme aimed at promoting investments in strategic sectors and assisting industrial companies in decarbonising their production processes.

The scheme will be open to all sectors, except credit institutions and other financial institutions and takes the form of a tax credit and consists of three measures:

  1. Accelerated renewable energy and storage rollout measure: supporting investments in the production of energy from renewable sources (excluding electricity generation), electricity or thermal storage and storage of renewable hydrogen, biofuels, bioliquids, biogas, biomethane or biomass fuels.
  2. Decarbonisation and energy efficiency measure: supporting decarbonisation of industrial production aiding companies to reduce greenhouse gas emissions by at least 40% and/or reduce energy consumption by at least 20%.
  3. Measure for investments in strategic sectors: supporting investments in producing strategic equipment, key components, and critical raw materials for green technologies like batteries, solar panels, and wind turbines.

The Commission approved the scheme under the State aid Temporary Crisis and Transition Framework (‘TCTF’), finding it fulfils the conditions set out therein such as respecting the maximum aid ceilings and being granted no later than 31 December 2025.

For more information, see the Commission’s PR.