As you know, today we have discussed a proposal for a new Framework for State aid measures to support the Clean Industrial Deal and I will go into the details in a couple of minutes.
The College also adopted the European Space Act on the safety, resilience and sustainability of space activities in the Union, and Commissioner Kubilius will come to the press room just after this press conference to present what we have discussed, what we have agreed.
With that said, I would add that the most important thing that I will be introducing right now is the main topic of this press conference on the clean industrial support aid Framework, knowing that the Security College, as you know, it is a classified meeting and that allows us to have an important discussion, but I will not comment on it.
I would like to introduce this Clean industrial State aid framework underlying the fact that is a welcome package "Choose Europe". It delivers on the commitment we made on the Clean Industrial Deal back in February. It helps support the idea that we want to become a fully decarbonized economy by 2050, and we have an ongoing discussion on how we can ensure the best way to count on the emissions reduction targets in the immediate climate law for 2040. It invites, as I said, to Choose Europe when deciding where to invest and it responds to the willingness of the different Member States and also the European institutions to come along with the European industry in its transition to a decarbonized and competitive industrial powerhouse.
Today we provide the framework for Member States to invest in our decarbonization. We want to modernize the economy and to make it sure that it is competitive, it is boosting social prosperity.
As you know, Europe has always got a great industrial preference and we know that this means updating the capacity to produce clean technology, to develop affordable, clean and more reliable energy sources and to ensure a more competitive and decarbonized industry.
But it is important to underline the fact that with this framework we intend to fast-track investments while ensuring faster and smooth decarbonisation of our economy, while taking into consideration that in order to use public resources we need to ensure that they are being used in an efficient manner and that they go along the lines of our great European projects so to ensure that we do not break the Single Market functioning, we underscore the thinking Europe approach, we are able to ensure that there is not negative impact in territorial terms. The role of the State may be the role of a regulator but it is also the role of an investor, making things easier.
And if we want to become competitive and decarbonized, if we want to count on a just society, on a fair way to produce wealth, it is important to power clean and flexible energy. It is important to ensure that we can remain innovative and retain talent. It is important to come along with the traditional sector so to facilitate this decarbonisation.
We want to lead this process and to ensure that we can count on private investment betting on Europe, at the same time that we ensure that the Single Market becomes and remains a source of cohesion, social progress, prosperity and fair competition.
Allow me to enter into this way to transform the vision into reality, how we can make use of the State aid tools, benefiting from the experience of these recent years where we have to come along with our societies to respond to previous challenges.
This framework establishes clear rules that give predictability to invest. It is a framework that will be in place for five years. It provides safeguards to guarantee the level playing field and territorial solidarity. It is shaping in such a way that counting on conditionalities, facilitating the fast-track development, we think European.
It is the moment where we assess it is important to move fast. We have a great opportunity to ensure that Europe is attracting investments and retaining talent. We have consulted widely on this Framework. We listen to the Member States, to the different stakeholders, to countless voices. We have studied 500 proposals since February and the result reflects the spirit behind those requests. It builds on the extensive experience, as I said, and it covers different aspects that are important for the different players in this European context.
First, to increase the share of clean energy in our energy mix. For that purpose, the framework helps to cost effectively fast track the rollout of clean energy. Second, because clean energy means autonomy and competitiveness, we want to ensure that the different tools that we put in place make full sense with our current regulation.
We want to ensure that we can reduce our reliance on fossil fuel imports to protect us from price volatility and geopolitical risk, to provide more stable and affordable energy prices, and to bet on the industrial services that help into building these equipments, these infrastructures and solutions.
Member States can now set up ready-to-use schemes for the deployment of renewable energy using faster and easier processes. We have paid particular attention to two types of key players in this transition.
First, we provide tools to support the clean transition in 'hard-to-decarbonise' sectors through low-carbon fuels such as hydrogen – crucial to cut emission in the short-and-medium term in sectors where cleaner or cheaper options aren't yet available.
We develop a temporary price relief for energy-intensive users, who continue to face higher costs compared to competitors in places will less ambitious climate policies with a strong conditionality so that they invest in exchange to accelerate the transition: more renewables, more electrification, more batteries, in flexibility…bringing the benefits of the future already today.
We propose a "4 times 50 scenario". This approach covers up to half of the average wholesale electricity price for up to half of the annual demand, thus reducing by up to 25% overall electricity costs of energy intensive users subject to the obligation to reinvest half into decarbonisation. Why this levels? We consider these are the justified thresholds by prices in relevant third countries and by past prices in the Union, we have the possibility to understand as well as to ensure that the potentially future electricity generation costs anticipating the benefits of decarbonization may help into today's industrial production.
So, Member States will be able to grant energy-intensive users a three-years electricity cost relief in return for a proportionate amount of investments on decarbonisation, flexibility or efficiency.
Second, to decarbonise our industrial base, the framework offers flexible support for all decarbonization and energy efficiency technologies. This means major emissions cuts, less dependence on fossil fuel imports, and a real transformation of how our industries operate.
The framework introduces a "green stamp" approach. This is a system of pre-approved aid levels tailored to the needs of each technology. It also includes safeguards, like requiring a certain level of energy efficiency in exchange.
This "green stamp" system allows Member States to move fast and provide targeted support, without going through a full notification process to authorise support for every project.
Third, to build a resilient clean tech ecosystem, we are backing key enabling industries, giving our innovators the space and incentive to thrive.
All the crucial technologies and components covered by the Net Zero Industry Act are included in the scope of this framework. This ensures clarity and coherence between the different EU rules related to the European clean tech industry.
Again, to safeguard competition and ensure that every region and every business has equal opportunities, Member States will be able to offer more support for clean tech projects in less advantaged regions – the greater the need, the greater the support.
We also know that certain clean tech sectors are in difficulties. That is why Member States will, for example, be able to support them with funding for new production lines, new machinery or to license technology – just to give you a few examples.
Rather than relying solely on grants or subsidies, equity investments represent a more effective and economically sustainable approach to state aid. This model not only enables strategic directionality but also ensures societal return on public risk.
Allow me to quote my good friend Mariana Mazzucato: "when the state takes risk, it should also share in the rewards." Governments have historically played a key role in taking early-stage, high-risk investments that pave the way for breakthrough innovations. The public sector is not just a market fixer but a market shaper.
And that is a strong message broadly supported by Member States. They want to be next to their industries. This is not merely a theoretical proposition. It has proven successfully in practice.
Finally, to de-risk and mobilize private investment, the framework brings critical tools to the table. For example, Member states can set up schemes to incentivise private investors to invest in green projects covered by the Framework. We want to be the best place to invest.
But our job is not yet done. We continue our work on different workstreams to further simplify, speed up and promote the right investments. For instance, we are currently working on the revision of the general block exemption regulation. We will keep on working in the development of the different tools being presented in the Clean Industrial Deal.
We announced the future competitiveness coordination tool. Once this tool is up and running, I could encourage Member States to also use it to better coordinate that public funding is spent on a clean and competitive future Europe. If we all work together, we can manage. And as I said, our main goal today is to ensure that Choose Europe becomes a reality.
