The European Commission has announced the adoption of a new Temporary Crisis and Transition Framework to support sectors that are key for the transition to a net-zero economy.
State aid: Commission adopts Temporary Crisis and Transition Framework to further support transition towards net-zero economy
The European Commission has adopted today a new Temporary Crisis and Transition Framework to foster support measures in sectors which are key for the transition to a net-zero economy, in line with the Green Deal Industrial Plan.
The new Temporary Crisis and Transition Framework amends and prolongs in part the Temporary Crisis Framework, adopted on 23 March 2022 to enable Member States to support the economy in the context of Russia's war against Ukraine and already amended on 20 July 2022 and 28 October 2022.
Together with the amendment to the General Block Exemption Regulation ('GBER') that the Commission endorsed today, the Temporary Crisis and Transition Framework will help speeding up investment and financing for clean tech production in Europe.
Taking into account the feedback received from Member States in the context of a survey and a targeted consultation, and in light of the Green Deal Industrial Plan, the new Temporary Crisis and Transition Framework:
The changes approved today will also assist Member States in delivering on specific projects under National Recovery Plans which fall within their scope.
The remaining provisions of the Temporary Crisis Framework (limited amounts of aid, liquidity support in form of State guarantees and subsidised loans, aid to compensate for high energy prices, measures aimed at supporting electricity demand reduction), more linked to the immediate crisis situation, remain applicable until 31 December 2023. With a view to ensuring legal certainty, the Commission will assess at a later stage the need for an extension.
Following two surveys on the implementation of the Temporary Crisis Framework, through which the Commission consulted Member States in late 2022 and early 2023, on 1 February 2023, the Commission sent to Member States for consultation a draft proposal, part of the Green Deal Industrial Plan, to transform the State aid Temporary Crisis Framework into a Temporary Crisis and Transition Framework. Together with the new Framework, today the Commission endorsed an amendment to the GBER to grant Member States more flexibility to design and directly implement support measures in sectors that are key for the transition to climate neutrality and to a net-zero industry, without the Commission's former approval.
The Temporary Crisis Framework, adopted on 23 March 2022, enables Member States to use the flexibility foreseen under State aid rules to support the economy in the context of Russia's war against Ukraine.
The Temporary Crisis Framework has been first amended on 20 July 2022, to complement the Winter Preparedness Package and in line with the REPowerEU Plan objectives, and further revised on 28 October 2022, in line with the Regulation on an emergency intervention to address high energy prices (Regulation (EU) 2022/1854) and the Commission's proposal on a new emergency regulation to address high gas prices in the EU and ensure security of supply this winter.
Sanctioned Russian-controlled entities are excluded from the scope of these measures.
More information on the Temporary Crisis Framework and other actions taken by the Commission to address the economic impact of Russia's war against Ukraine can be found here.
For more information
Support possibilities for schemes under section 2.8 of the Temporary Crisis and Transition Framework