The European Commission has approved a Polish State aid scheme worth approximately €1.2 billion (PLN 5 billion) to support investments in strategic sectors, aiming to foster the country’s transition towards a net-zero economy. The scheme is part of broader European Union efforts to encourage renewable energy development and sustainability initiatives under the State aid Temporary Crisis and Transition Framework (TCTF).

Supporting strategic sectors for a green future

Poland’s newly approved aid program is designed to incentivize investments in industries critical for the transition to a net-zero economy. The aid, in the form of direct grants, will be available to companies involved in producing essential equipment like batteries, solar panels, wind turbines, heat pumps, electrolysers, and technology for carbon capture, usage, and storage (CCUS). Additionally, the scheme will extend support to companies developing key components and raw materials vital for the production of these green technologies.

This measure aims to accelerate the adoption of sustainable technologies across Poland, ensuring a swift shift toward renewable energy and reduced carbon emissions. The program aligns with the European Green Deal, which seeks to make Europe the first climate-neutral continent by 2050.

Compliance with EU State aid rules

The Commission found Poland's scheme fully compliant with the conditions set out in the TCTF, ensuring that the initiative remains proportional and appropriate. According to the European Commission, the aid package meets several key criteria:

• It incentivizes the production of critical equipment for the green transition.
• It adheres to the maximum aid ceilings.
• All aid will be granted no later than December 31, 2025.

The European Commission concluded that the Polish State aid initiative is both necessary and proportionate, particularly in light of the EU’s climate goals. The measure also contributes to the broader objectives of the Green Deal Industrial Plan.

Margrethe Vestager’s remarks on the scheme

Margrethe Vestager, Executive Vice-President of the European Commission for competition policy, praised the Polish initiative, stating: "Today, we have approved a €1.2 billion Polish measure to support investments in strategic equipment, namely batteries, solar panels, heat-pumps, wind turbines, electrolysers, and carbon-capture usage and storage. This will help accelerate the transition to a net-zero economy, in line with the objectives of the Green Deal Industrial Plan and the EU’s climate neutrality target. At the same time, competition distortions remain limited."

Background: The Temporary Crisis and Transition Framework (TCTF)

The TCTF, introduced in March 2023 and later amended in November 2023 and May 2024, is part of the EU’s efforts to accelerate the green transition across Member States. The framework allows countries to implement support measures in sectors critical for reducing carbon emissions and achieving climate neutrality. This includes support for renewable energy investments, the decarbonization of industrial processes, and the development of key green technologies such as hydrogen and CCUS.

By providing aid through schemes like Poland's, the EU aims to reduce dependence on fossil fuels, particularly imported ones, and drive the electrification of industries. The ultimate goal is to ensure Europe remains competitive while meeting its ambitious climate targets.

A step towards climate neutrality

The €1.2 billion Polish aid package is a significant step forward in Europe’s collective effort to transition to a net-zero economy. As countries like Poland increase investments in green technologies, the EU moves closer to realizing the objectives of the Green Deal Industrial Plan and the climate neutrality goals set for 2050.