The European Commission has approved a €2.3 billion Finnish state aid scheme aimed at reducing industrial emissions and boosting clean energy investments. The plan, which takes the form of a tax credit, will support businesses investing in renewable energy, energy storage, and emissions reduction technologies.
The scheme consists of three key measures. The first will fund investments in renewable energy production, excluding electricity generation.
It will also support storage solutions for renewable hydrogen, biofuels, biogas, and other sustainable energy sources.
The second measure will focus on decarbonising industrial production by helping companies cut greenhouse gas emissions by at least 40% or reduce energy consumption by at least 20%. The goal is to transition Finnish industry away from fossil fuels and improve energy efficiency.
The third measure will fund the production of strategic equipment, including batteries, wind turbines, solar panels, heat pumps, electrolysers, and carbon capture technology. Companies involved in manufacturing key components for these technologies will also be eligible for support.
The scheme complements a €400 million Finnish programme approved in December 2024, which also aims to accelerate decarbonisation and clean energy investments. The new initiative aligns with the EU’s broader goals for achieving net-zero emissions and reducing reliance on imported fossil fuels.
The funding is available to all industries except financial institutions and will be granted under strict conditions to prevent market distortions. Companies must complete decarbonisation projects within 36 months, and penalties will apply for delays. Investments must be newly installed or repowered capacity, ensuring that the aid directly contributes to emissions reductions.
The programme falls under the EU’s Temporary Crisis and Transition Framework (TCTF), which allows member states to provide targeted financial support for green energy projects. Aid must be granted before the end of 2025.
The Finnish government sees the scheme as a critical step in strengthening the country’s industrial competitiveness while meeting EU climate targets. The European Commission will monitor the implementation to ensure compliance with state aid rules and prevent investment relocations within the European Economic Area.
HT
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Publish date : 2025-02-21 04:52:00
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