To address possible carbon leakage connected to Germany’s fuel emissions trading scheme, the Commission approved €6.5 billion in compensation to energy-intensive companies to cover their higher fuel prices. The scheme will cover costs incurred up to 2030. Beneficiaries will have to invest at least 50% (rising to 80% in 2025) of their compensation on energy efficiency measures and decarbonisation. Further information is available here.
A €45 million Irish scheme of direct grants to forest landowners has been approved by the Commission. The scheme aims to promote forestry growth, to protect biodiversity, soil and water quality, to adapt to climate change and to increase capacity for carbon storage. Further information is available here.
The Commission approved a direct grant of €1.5 billion to support ProLogium Technologies’ R&D of solid state batteries for electric vehicles, which aim to be safer than lithium-ion batteries. The aid is conditional on ProLogium’s commitment to know-how sharing and for clawback to occur if there are extra net revenues. Further information is available here.
NEW INTEREST AND RECOVERY RATES
The Commission published a notice, effective from 1 September 2023, which sets out the interest rates and reference rates for recovery of State aid. The rates have increased for Denmark and the UK, but are unchanged for the 27 Member Sates. Further information is available here.