The European Commission has approved a €2.3 billion Finnish State aid scheme aimed at supporting investments in strategic sectors and facilitating the decarbonisation of industrial production.
This initiative aligns with the European Commission’s 2024-2029 priorities, which emphasize clean energy investments and technological advancements. The scheme has been approved under the State aid Temporary Crisis and Transition Framework (TCTF), initially adopted on 9 March 2023 and later amended on 20 November 2023 and 2 May 2024.
Overview of the Finnish Scheme
Finland has notified the Commission of this €2.3 billion scheme under the TCTF, which builds upon a previously approved €400 million Finnish aid package (SA.113721) from 13 December 2024. The scheme comprises three key measures designed to accelerate the transition to a climate-neutral economy:
Accelerated Renewable Energy and Storage Rollout
This measure supports investments in renewable energy production (excluding electricity generation), electricity or thermal storage, and the storage of renewable hydrogen, biofuels, bioliquids, biogas, biomethane, or biomass fuels.
Decarbonisation and Energy Efficiency
This measure helps industrial companies reduce greenhouse gas emissions from production by at least 40% or decrease energy consumption by a minimum of 20%.
Investments in Strategic Sectors
This measure promotes the production of strategic equipment, including batteries, solar panels, wind turbines, heat pumps, electrolysers, and carbon capture usage and storage technologies. It also supports key components and critical raw materials essential for these industries.
The aid will be provided in the form of a tax credit and will be accessible to all sectors, except credit and financial institutions.
Commission's Assessment and Approval
The Commission determined that the Finnish scheme complies with the TCTF's conditions. Specifically:
The aid remains within the established maximum ceilings and will be granted no later than 31 December 2025.
Support under the renewable energy and storage measure will be limited to newly installed or repowered capacities.
The decarbonisation and energy efficiency measure requires project completion within 36 months, with penalties imposed for delays.
Investments in strategic sectors will be incentivized to boost the production of climate-neutral technologies.
To prevent market distortions, the scheme incorporates safeguards ensuring fair competition and mitigating investment relocations within the European Economic Area (EEA).
Given these conditions, the European Commission has approved the Finnish State aid scheme under EU State aid regulations.