Temporary Crisis and Transition Framework (TCTF) - support for zero-carbon sectors

EU State aid rules are moving decisively towards supporting investments that contribute to Europe's transition to a low- or zero-carbon economy.  
 
One of the most attractive tools for this is the new State aid funding for strategic equipment manufacturing introduced by the modified Temporary Crisis and Transition Framework (TCTF).

Who will be able to receive the aid?

Companies producing batteries, solar panels, wind turbines, heat pumps, electrolysers or CCUS (carbon capture and storage) equipment. State aid will also be provided for investments in the production of key components for such equipment. It will address both the production and recovery of critical raw materials necessary for the manufacture of equipment and components of the low-carbon economy.

What makes TCTF so attractive?

  1. Significantly higher limits of available aid compared, for instance, to what regional aid offers. For example, an investment of EUR 1 billion in the so-called 'a' region can get an aid up to EUR 350 million!

     

  2. The aid will not require its prior notification to the European Commission. This will will significantly speed up the procedure for the real disbursement of funds, save time and expenses for such proceedings.

     

  3. The investment will also be possible in areas where it would not be feasible to grant State aid in the form of regional aid. This is because its purpose is not to support specific regions, but specific industries.

     

  4. In exceptional cases, where there is a real risk of investment being redirected outside Europe, Member States may grant the amount of aid that the beneficiary could have received to an equivalent investment in an alternative location (so-called ‘matching aid’ ) or the amount required to incentivise the company to locate the investment in the EEA (so-called ‘funding gap’), whichever is lower. While such aid will involve certain restrictions and require notification to the European Commission, it also offers the possibility of support on an unprecedented scale.

Aid under the new rules can be provided until 31 December 2025. However, this is not the same as the date by which projects should be completed. They may last longer, but the aid must be obtained before the indicated date.

This is a completely new perspective on a State aid and a huge investment incentive for key sectors. A big boost can therefore be expected in this sector. 

Given the time restrictions, it is worth looking at investment plans as soon as possible, and reviewing them to see if they could count on aid from the new source in the form of TCTF.

Areas of our advice:  

  1. We will assess whether the investment fits into the categories set out in the TCTF. If so, we will help identify the optimal source of aid based on the specific section of the TCTF. We ill make it by providing simulations and calculations.

     

  2. We will guide you through the application process by preparing applications for aid, necessary declarations and attachments.

     

  3. We will support you in the negotiation process with the granting authorities.

     

  4. We will support you in the verification and selection of eligible costs.

     

  5. If you have already received public aid for the same or another project, and you are considering aid from TCTF, we will help you assess whether the relevant requirements for cumulation of aid have been complied with. 

     

  6. If you intend to use the aid specified in point 86 of section 2.8 of the TCTF, we will additionally support you in the aid notification process towards the European Commission, and in the preparation of additional required documents.

     

Do you want to apply for support?

Write to us

Leaders of the OW State aid

Magdalena Tyrakowska-Szymczak
Partner | Attorney-at-law
mail >

Justyna Korycka
Partner | Attorney-at-law
mail >

Marta Hausmann
Senior Manager | Attorney-at-law
mail >

Katarzyna Pamuła-Wróbel

Director | OW State Aid
mail >

Bartosz Jeziorski
Senior Manger | Attorney-at-law

mail >

Contact

M. (+48) 71 75 00 700

E. olesinski@olesinski.com

 

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50-024 Wrocław   

(+48) 71 75 00 700  

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All material on the website is for information purposes only and does not constitute legal or tax advice. Olesiński i Wspólnicy Sp.k. shall not be held liable for the use of the information contained therein without prior professional advice from OW specialists.

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