The EU on Wednesday unveiled new rules allowing member states to grant financial support to firms producing low-carbon technologies, including nuclear power, in the face of competition from China and the United States.
The framework, which will be in place until the end of 2030, replaces an earlier text from 2022 that expires this year.
鈥淚f Europe wants to lead in clean tech, we must act with courage and clarity,鈥 said Teresa Ribera, the European Commission鈥檚 executive vice-president for a clean, just and competitive transition. 鈥淭he new framework simplifies and speeds up support for decarbonization.鈥
At the request of France and other pro-nuclear nations, such as Sweden and Poland, the rules introduce a 鈥渢echnological neutrality鈥 concept allowing for state aid to flow towards nuclear as well as renewable energy generation.
鈥淔ully recognizing member states鈥 rights to determine their energy mix, the commission will conduct a timely assessment of state aid cases for nuclear energy generation, including for small and advanced modular reactors, with a view to ensuring legal certainty for such aid,鈥 the text reads.
The framework also covers help for 鈥渓ow-carbon fuels,鈥 like 鈥渂lue鈥 and 鈥済reen鈥 hydrogen, which can support companies in 鈥渉ard-to-decarbonize鈥 sectors to go green, the commission said.
鈥淕reen hydrogen鈥 is produced using renewable energy, while 鈥渂lue hydrogen鈥 relies on fossil fuels such as coal and gas, with carbon-capture technology to reduce emissions.
Responding to pressure from Germany, the text also allows for the temporary subsidizing of electricity prices for energy-intensive industries in return for investments in decarbonization.
Europe鈥檚 largest economy relies on intermittent renewable production and energy from gas-fired power plants, the price of which has gone up sharply after the war in Ukraine pushed Europe to cut low-cost gas imports from Russia.
The framework greenlights subsidies for factories involved in the production of solar panels, wind turbines, batteries, and heat pumps, as well as components for the nuclear industry, among other sectors.