A €2.36 billion (£2bn) Hungarian scheme for accelerated investments in strategic sectors to support the transition towards a net zero economy has been granted approval by the European Commission.

It was given the green light under the state aid Temporary Crisis and Transition Framework, adopted by the Commission in March 2023 to support measures in sectors that are key to accelerate the green transition and reduce fuel dependencies.

Under the Hungarian scheme, the aid will take the form of direct grants and/or tax advantages.

The Commission found the Hungarian scheme is in line with the conditions set out in the Framework and said it is “necessary, appropriate and proportionate” to accelerate the green transition and facilitate the development of certain economic activities.

Margrethe Vestager, Executive Vice President in charge of competition policy said: “This €2.36 billion Hungarian scheme will support investments towards a net zero economy.

“The scheme is open to strategic sectors producing batteries, solar panels, wind turbines, heat pumps, electrolysers, equipment for carbon capture usage and storage and key components for such equipment. It will support investments and help Hungary to integrate renewable energy in its economy, without unduly disturbing competition.”