On Thursday 25 July, the European Commission ruled that the Dutch aid scheme worth €750 million to support the decarbonisation of industrial production processes complied with the temporary EU framework adopted in March 2023 in response to the US Inflation Reduction Act (see EUROPE 13138/1).
The scheme, which will take the form of direct grants awarded following calls for tender, will encourage businesses to reduce their annual greenhouse gas emissions by at least 100,000 tonnes below the minimum thresholds set by the national carbon tax, by enabling them to replace fossil fuels with the electrification of manufacturing processes.
According to the Commission, the Dutch measure complies with the European framework insofar as the aid: - will not exceed €200 million per beneficiary; - will be granted by the end of 2025; - will be subject to conditions designed to limit undue distortions of competition (clawback mechanism, if the project supported generates additional net revenue, 2% limit on the increase in production capacity). (Original version in French by Mathieu Bion)