EU plans to loosen state aid rules to boost renewables investment
(The Guardian, 30 Jan 2023) Proposed use of tax credits follows pressure to respond to Biden’s $369bn green subsidy scheme in US.
The EU is stepping up its green subsidy race with the US through plans to loosen state aid rules on tax credits for renewable energy projects.
European policymakers have been under pressure to respond to the US president Joe Biden’s $369bn (£298bn) Inflation Reduction Act, which aims to encourage renewables investment in everything from electric cars to wind turbines.
The European Commission plans to loosen state aid rules to enable investment into production facilities in green industries, according to draft plans.
The draft proposals reportedly suggest some of a €800bn (£705bn) Covid-19 recovery fund could be redirected towards tax credits.
“The provisions on tax benefits would enable member states to align their national fiscal incentives on a common scheme, and thereby offer greater transparency and predictability to businesses across the EU,” the draft said.