The European Commission has endorsed Italy’s €400 million initiative to foster industrial decarbonization, explicitly focusing on hydrogen and its derivatives. This significant support package, approved under the State Aid Temporary Crisis and Transition Framework (‘TCTF’), underscores Europe’s commitment to accelerating the transition to a greener economy.
Italy’s measure targets substantially reducing greenhouse gas emissions and energy consumption within industrial processes. Key components include direct disbursements and subsidized loans, facilitating investments that promote the shift from fossil fuels to renewable hydrogen or direct electrification. Additionally, investments to enhance industrial process efficiency are set to benefit from the scheme.
Under the approved plan, individual beneficiaries can receive up to €200 million each, subject to stringent conditions to mitigate potential distortions of competition. These conditions include mechanisms to prevent windfall profits and limits on production capacity expansion.
The Commission’s approval reflects its view that the measures are crucial for advancing the objectives of the REPower EU and the Green Deal Industrial Plan. These initiatives are pivotal in driving economic activities to achieve sustainable growth and environmental targets across the European Union.
