HICKEY European Government Incentives & State Aid Update - January 2022
Hickey’s European Government Incentives & State Aid Update - January 2022
The following is an update on government incentives and state aid across the dynamic European region for the month of January 2022. Information and intelligence have been assembled by Hickey’s European Location Strategy and Incentives team.
Extension of State Aid Temporary Framework – increased aid ceiling and new funding opportunities for investment!
The European Commission has extended the State Aid Temporary Framework supporting companies impacted by the pandemic to at least 30 June 2022, along with increasing the scope and maximum levels of funding. The extended framework also includes new measures enabling economic investment and post-pandemic solvency support.
Key changes included:
Ceiling for aid for many companies increased from €1.8 million to €2.3 million and can be combined with de minimis aid (total of €2.5 million)
Investment support measures able to kickstart a sustainable recovery will be available until 31 December 2022 and can support up to 15% of eligible costs up to a maximum of €10 million (€15 million if the support is in the form of guarantees or loans)
Companies can benefit from the enhanced ceiling for COVID business support in each country and we expect announcements by member states creating new incentives for investments undertaken by companies and use this tool to accelerate green and digital transitions.
Green Deal – funding for sustainable investment
The new guidelines on State Aid for climate, environmental protection and energy have now come into effect and set out the Green Deal objectives by the European Commission. The target for reducing net greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels, means that the focus is not just on R&D, but also the implementation of sustainable measures into investment plans by companies.
We expect EU countries to come out with new schemes to further these goals. However the Green Deal can also impact existing schemes such as Regional Aid where there are increased levels of aid intensity for investment projects in disadvantaged areas.
The guidance provides an opportunity to receive support for the additional cost related to sustainable investment. Companies keen to improve their carbon footprint should act now as in the future there will be a shift that lower emission targets become a requirement for support, rather than a target that gets additional funding.
For more information on these critical updates on European government incentives and state aid and/or to determine if your project is eligible, please connect with a Hickey EMEA Location Strategy & Incentives expert today: