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EU Loosens Anti-Subsidy Shackles to Help Fund Green Overhaul

  • Changes make it easier for nations to combat climate change
  • Member states will find it simpler to cut electricity levies
Margrethe Vestager

Margrethe Vestager

Photographer: Geert Vanden Wijngaert/Bloomberg
Updated on

The European Union will loosen its stringent state-aid rules to make it easier for nations to help fund the bloc’s transition to a climate-neutral economy by the middle of the century.

Member states will be allowed to provide aid amounting to up to 100% of the funding gap and introduce new instruments such as Contracts for Difference, which are seen as crucial for scaling up renewable technologies, according to the European Commission. The new guidelines, which will take effect from January, also aim to incentivize investment into clean transport and the renovating of buildings.