The EU Commission adopts a Temporary Crisis and Transition Framework to relax State aid rules in support of green transition

On 9 March, the European Commission ( Commission ) significantly amended its State aid framework to support the economy following Russia’s aggression against Ukraine. This revision of the existing Temporary Crisis Framework ( TCF ), which is now called Temporary Crisis and Transition Framework ( TCTF ), is nothing short of a paradigm shift in EU State aid law. The EU now leaves the achievement of its climate targets to the willingness and ability of the Member States to subsidise companies in support of accelerating the rollout of renewable energy, the decarbonisation of industrial production processes and accelerated investments in sectors strategic for the transition towards a net-zero economy. Under the TCTF, Member States that can afford to enter the subsidy race, are essentially free