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On 9 March 2023, the European Commission amended the Temporary Crisis Framework to allow Member States to support the economy in the context of the Russian invasion of Ukraine, first adopted on 23 March 2022 and already amended.
The Temporary Crisis Framework complements the State aid toolbox with many other possibilities already available to Member States, such as measures providing compensation to businesses for damage directly suffered as a result of exceptional circumstances and the measures outlined in the Commission Communications on Energy Market Developments (REPowerEU Communication).
In particular, Communication C(2023) 1711C(2023) 1711 final – Temporary crisis and transition framework for State aid measures to support the economy following Russia’s aggression against Ukraine:
- support measures to facilitate the transition to a zero-emission industry, such as measures to accelerate the deployment of renewable energy and energy storage and for the decarbonisation of industrial production processes, are extended until 31 December 2025;
- changes the scope of the measures to implement schemes to support renewable energy, storage and decarbonisation of industrial production processes, simplifying the conditions for granting aid to smaller projects and less mature technologies; broadening the possibilities for supporting and supporting the decarbonisation of industrial processes by switching to hydrogen-derived fuels; providing for higher aid ceilings and simplified aid calculations;
- new measures, applicable until 31 December 2025, are introduced to further accelerate investments in key sectors for the transition to a net-zero economy, through investment support for the production of strategic equipment (battery, solar panels, wind turbines, heat pumps, electrolysers and carbon capture utilisation and storage);
- the approved amendments may also apply to specific projects covered by the NRRPs;
- the other provisions of the Temporary Crisis Framework remain applicable until 31 December 2023 (limited amounts of aid, support in the form of State guarantees and subsidised loans, aid to compensate for high energy prices, measures to support the reduction of electricity demand), more linked to the current crisis. The Commission will assess the need for an extension at a later stage.