The European Commission has approved a €750 million Dutch scheme to support investments in the decarbonisation of industrial production processes to foster the transition towards a net-zero economy. 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 scheme will incentivise companies in the Netherlands to reduce greenhouse gas emissions from industrial production processes by at least 40% compared to today. The aid will take the form of direct grants that will be awarded following one or more calls for proposals.
The measure will be open to companies operating an industrial installation in the Netherlands, for investments enabling the substitution of fossil fuels through the electrification of industrial processes. To be eligible, beneficiaries have to reduce by 2030 their annual greenhouse gas emissions by at least 0.1 million tonnes below the minimum thresholds set by the national CO₂ levy. The scheme will make a significant contribution to the Dutch strategy to reduce greenhouse gas emissions by the industry by 4 million tons by 2030.
The Commission found that the Dutch scheme is in line with the conditions set out in the TCTF. In particular, the aid (i) will not exceed €200 million per beneficiary; and (ii) will be granted no later than 31 December 2025. Furthermore, the aid will be subject to conditions to secure actual emissions savings.
A press release is available online.