The European Commission has given the green light to a €4 billion French initiative to significantly reduce greenhouse gas emissions in the manufacturing sector.
The measure will support investments in two key areas: the electrification of industrial processes and improvements in energy efficiency. Companies in the manufacturing sector can receive direct grants covering up to 30% of investment costs. To qualify, electrification projects must reduce greenhouse gas emissions by at least 40%, and energy efficiency projects must cut energy consumption by at least 20%.
The Commission found that the French scheme complies with the conditions of the Temporary Crisis and Transition Framework, including a ceiling on aid per beneficiary of 10% of the total budget (€400 million) and a deadline for granting aid of 31 December 2025. In addition, in order to avoid undue distortions of competition, beneficiaries will not be allowed to increase their production capacity by more than 2% compared to current levels.
For further information, see Commission’s Press Release.