State aid rules

Aid cannot be awarded above the aid intensity set for the purpose for which it is granted. All forms of aid must be included when calculating the total amount. Aid is calculated as a percentage of the project costs, meaning the eligible cost items included in the calculation basis. Where the same project receives aid from several public sources for different purposes, the general rule is that the total aid relating to the same costs must not exceed the aid ceiling for the purpose with the highest ceiling. If the aid intensity is exceeded, payments will be reduced accordingly.

In most cases, funding must have an incentive effect, meaning it must be instrumental in enabling the project to proceed.

Under the rules we apply, aid has an incentive effect if the recipient submits a written application before work on the project or activity begins. For an application to be considered submitted to us, it must be registered in our records management system with the following information:

• the aid recipient's name and size;
• a description of the project, including the start and end dates;
• the location of the project;
• an itemised breakdown of the project costs; and
• the form of support (grant/financial guarantee/loan) and the public funding required for the project to go ahead.

The incentive effect requirement does not apply to aid granted under Article 22 of the GBER (startup funding), nor does it apply to de minimis aid.

Support for certain ‘export-related activities’, as defined below, is prohibited. This prohibition applies to support that either

1) is directly linked to the quantities exported

2) is aid that favours domestic goods over imported goods

3) is aid for establishing and operating distribution networks in other countries

4) is support for ongoing expenses related to export activities

We cannot provide funding to companies that are ‘in difficulty’. This restriction does not apply to funding provided under the de minimis rules or Article 22 (startup funding).

A company is ‘in difficulty’ if it meets one or more of the following criteria:

For SMEs and large companies

1) If more than half of the subscribed capital, including share premium, has been lost as a result of accumulated losses. Subscribed capital does not include subordinated loans or other debt instruments. SMEs are exempt from this rule for the first three years after the company or group is registered.

Both the company and any group it forms part of must pass this ‘test’. In the latter case, the assessment must be based on the consolidated financial statements1. If consolidated figures are not available, the figures for the group companies must be added together manually, although eliminations may be made. If this appears disproportionately complicated, the assessment may be based on a reasonable plausibility check.

2) If the company or the group to which it belongs is insolvent (the basic condition for initiating bankruptcy proceedings). Insolvency occurs when the adjusted equity is negative (balance-sheet insolvency) and there are insufficient funds to meet current liabilities as they fall due (illiquidity).

For large companies only

3) If, for each of the past two years, the company has had 1) a debt-to-equity ratio > 7.5 and 2) an EBITDA-to-finance costs ratio < 1. Note that this ‘test’ must also be carried out at group level, not only at company level.

Criterion 2 is straightforward to apply, and in any case, insolvent companies will not qualify for support from Innovation Norway following a financial assessment. Criterion 3 may affect some large companies with high debt ratios and insufficient debt-servicing capacity, but this is not a significant issue in practice. The criterion most likely to prevent lawful support is criterion 1:

If the latest annual accounts show that more than half of the subscribed capital has been lost, support cannot be granted under the GBER.

Whether there are accumulated losses on the balance sheet depends to some extent on whether development costs (R&D costs) have been capitalised or expensed (resulting in accumulated losses).

If the company is more than three years old and is considered to be ‘in difficulty’ when applying, it will largely be up to the company to make changes to its balance sheet that make it eligible for support. For example, the company can avoid meeting the criterion by raising new share capital through a cash issue or by converting subordinated loans or other debt. It can also reduce accumulated losses by using the share premium reserve or reducing its share capital – or by combining these measures.

We cannot provide funding if the recipient is subject to recovery proceedings for an outstanding claim to repay unlawful State aid following a decision by the EFTA Surveillance Authority (ESA). When you accept funding from us, you confirm that you are not subject to any such claim.

Purpose of the grant

Investments (‘initial investments’) related to establishing a new business, expanding the capacity of an existing business, diversifying production into new products or services not previously produced, or fundamentally changing the production process for the product(s) or the overall delivery of the service(s) affected by the investment in an existing business. For large enterprises, only investments that create new economic activity are eligible for support (see the definition of new economic activity below). Replacement investments are not eligible for support.

The purchase of assets from a business that is closing down or would have closed down had it not been acquired, provided that the buyer is independent of the former business (i.e. has no ownership interest in it). If a small business is transferred to former owners and/or employees, the buyer does not need to be independent. The purchase of shares is never eligible for support.

Definitions

‘New economic activity’ means establishing a new business or diversifying the business, provided that the new activity is not the same as, or similar to, an activity already carried out by the business in the same municipality within the ‘assisted area for regional investment aid’. ‘The same or a similar activity’ means an activity within the same industry class (four-digit numerical code) in the Standard Industrial Classification (NACE Rev. 2). Where the large company or group already operates in the relevant area, we must require the aid recipient to document that the new activity does not fall within the same industry class as the existing business. Special condition no. 22.7, ‘new economic activity’, may be applied in such cases. (Notwithstanding the above, the rules may be interpreted to mean that establishing an entirely new, separate and independent business within the same industry class may be regarded as a ‘new economic activity’. In such cases, the new business must be operationally separate from the existing business and must not merely increase capacity.)

‘Relocation’ means the transfer of the same or a similar activity, or parts of an activity, from an establishment in one EEA state to the establishment where the investments are to be made in another EEA state. A transfer is deemed to have taken place if the product or service at the original and the aided establishment serves at least partly the same purposes and meets the demands or needs of the same type of customers, and jobs are lost in the same or a similar activity at one of the aid recipient’s establishments in the EEA. Jobs are deemed to have been lost if the establishment concerned closes down entirely, or if the activity is partially discontinued and this results in significant job losses. In this context, ‘significant’ means the loss of at least 100 jobs or a reduction of at least 50% of the establishment’s workforce at the time of application (see the Commission’s GBER FAQ 2015, answer in point 4 to question 64).

Eligible costs

1. Investments (‘initial investments’) in tangible and/or intangible assets: real estate, buildings, facilities, machinery and equipment, including vessels, as well as expenditure on patents, licences, know-how or other intellectual property rights (IPR). The IPR must be used exclusively by the business receiving the aid, must be eligible for capitalisation and depreciation, must have been purchased at market price from a third party unrelated to the buyer, and must be included in the company’s assets and remain associated with the supported project for at least five years (three years for SMEs). For large enterprises, eligible IPR costs may not exceed 50% of the project’s total eligible costs. Costs relating to preparatory studies and consultancy services associated with investment projects cannot be included as eligible costs. However, aid for consultancy services for SMEs may be granted under Article 18 of the GBER; see section 5.2.2.

Assets must be new, except for SMEs and when purchasing the assets of a business. In the latter case, any equipment that has previously received funding must be deducted from the eligible cost base.

Subject to certain conditions, expenses for renting real estate and buildings may also be included in eligible costs.

For the diversification of production into new products, eligible costs must exceed the book value, as recorded in the latest financial year, of existing assets reused to produce the new products by at least 200%. Existing assets reused include land, buildings, machinery and equipment, calculated on a pro rata basis if they are also used to produce other products.

2. The company's estimated wage costs, calculated over a two-year period, for jobs created directly by the investment project.

3. A combination of 1 and 2, but the total amount must not exceed the eligible costs under whichever of the two points has the higher amount.

Exceptions

• Regional investment aid cannot be granted to the following sectors:
• Steel (see the definition in Article 2(43) of the GBER)
• Coal, including lignite (see the definition in GBER Article 2(13) and Article 2(43a))
• The transport sector (see the definition in Article 2(45) of the GBER), including related infrastructure
• Energy production, storage, transmission, distribution and infrastructure
• Broadband

Regional investment aid cannot be granted to large enterprises for the acquisition of businesses (business assets) that have closed down or would have closed down had they not been acquired (for example, purchases from a bankrupt estate), if the acquired assets are to be used for the same or a similar activity carried out by the buyer before the acquisition.

Aid intensity

For eligible costs of up to EUR 55 million, the maximum aid intensity is 10% for the municipalities of Utsira and Kvitsøy in Rogaland and Aukra in Møre og Romsdal, and 20% for all other municipalities and basic statistical units within the designated area. The aid intensity may be increased by 10 percentage points for medium-sized enterprises and 20 percentage points for small enterprises (SME bonus). For eligible costs between EUR 55 million and EUR 110 million, the maximum aid intensities stated above are halved for large enterprises. No aid may be granted for eligible costs exceeding EUR 110 million, and no SME bonus is available for eligible costs exceeding EUR 55 million.

On 8 December 2021, ESA approved changes to Norway's assisted area for regional aid (the regional aid map), which will apply from 2022 to 2027. Section 3 of the Regulations on the assisted area for regional investment aid provides a complete overview of the municipalities and basic statistical units included in the geographical area eligible for regional aid. The assisted area is divided into two parts. The smaller part consists solely of the municipalities of Utsira, Kvitsøy and Aukra, while the larger part comprises the other municipalities and basic statistical units within the assisted area. Please note that, for some municipalities, only certain parts of the municipality (basic statistical units) fall within the assisted area.

Regional investment aid exceeding EUR 8.25 million in the municipalities of Utsira and Kvitsøy in Rogaland and Aukra in Møre og Romsdal, as well as aid exceeding EUR 16.5 million in the other municipalities and basic statistical units within the eligible area, must be notified to ESA if eligible costs amount to EUR 110 million or more. All investment projects initiated by the same company or group within the same county over a rolling three-year period must be considered part of a single investment project. The maximum aid intensities and notification thresholds apply to the total investment.

Notes

The investment must remain in the assisted area for at least five years, or at least three years for SMEs, after the investment has been completed. (Under our standard terms and conditions for investment grants, the requirement is five years for SMEs as well.) This does not prevent the replacement of plant and equipment that has become obsolete or broken down, provided that the activity continues in the area concerned. The completion date is defined as the date on which the national authorities consider the investment to be complete (when a completion certificate has been issued), or, in the absence of such a date, three years after the project began.

The aid recipient must confirm that no relocation (see definition above) has taken place during the two years preceding the application date and undertake not to carry out such a relocation between the application date and two years after the investment has been completed (as defined in the previous paragraph).

At least 25% of the investment amount must be financed with private capital (own funds or external financing) without any form of public support. In this context, central EU funding is considered public support, even if it does not constitute State aid.

See also the option of supporting local infrastructure under Article 56 of the GBER.

Purpose of the funding 

May only be granted to SMEs. The definition of an SME is provided in Chapter 6.

Investments related to setting up a new business, expanding an existing business, diversifying production into new products or services not previously produced, or fundamentally changing the production process for the product(s) or the general delivery of the service(s) affected by the investment in an existing business. Replacement investments are not eligible for support.

The purchase of assets (the underlying business assets) in an enterprise that is closing down or would have closed down had it not been acquired (for example, a purchase from a bankrupt estate), provided that the buyer is independent of the former enterprise (i.e. has no ownership interest in it). If a small enterprise is transferred to members of the former owners’ family or to employees, the buyer does not need to be independent. The purchase of shares is never eligible for support.

Eligible costs 

1. Investments in tangible and intangible assets: Real estate, buildings, facilities, machinery and equipment, including vessels (both new and used), as well as expenditure on patents, licences, know-how or other intellectual property rights (IPR). The IPR must be used exclusively by the business receiving the grant, must be depreciable, must have been purchased at market price from a third party independent of the buyer, and the grant recipient must retain ownership for at least three years. Subject to certain conditions, the cost of renting real estate and buildings may also be included in eligible costs.

2. The company's estimated wage costs over a two-year period for jobs created directly by the investment project.

3. A combination of 1 and 2, but the total amount must not exceed the eligible costs under whichever of the two points has the higher amount.

Exceptions 

Investment aid exceeding EUR 8.25 million per company per investment project must be notified to ESA.

Aid intensity 

The maximum aid intensity is 10% of eligible costs for medium-sized enterprises and 20% for small enterprises.

Eligible costs 

Costs for external consultants may be eligible for support. This does not include ongoing or recurring activities related to the company’s operating costs, such as standard consultancy fees for tax matters, routine legal services or advertising. However, costs for an external consultant needed to assess a new market for a new or existing product may be eligible for support.

Exceptions 

Funding cannot be provided for ordinary operating costs or exports; see section 4.2 (for example, funding cannot be provided for establishing and operating distribution networks).

Aid amounts exceeding EUR 2.2 million per company per project must be notified to ESA.

Aid intensity 

The maximum aid intensity is 50% of eligible costs.

Notes 

Before a decision is made, the account manager must assess what can be accepted as an ‘external consultant’. The consultant must be external to the company receiving the grant. A consultant from our organisation will be considered an ‘external consultant’. As a general rule, the grant recipient and the company or individual providing the consultancy services should be independent of each other. However, ownership interests of up to 25% are permitted, whether held directly or indirectly. This means that purchasing services from a sister company, parent company or partner does not meet the requirement of being ‘external’. Particular caution must also be exercised if there is any close connection between the buyer and seller of the consultancy service. This may, for example, apply where services are to be purchased from a company owned by the founders, board members or others connected to the grant recipient. If we determine that restrictions should apply to what can be accepted as ‘external’, this must be stated in the letter of grant.

Eligible costs 

We can support expenses related to participation in trade fairs and exhibitions, including the cost of hiring, setting up and operating a stand and producing exhibition materials, as well as travel and accommodation costs for your own employees. Salary costs are not covered, but may be eligible for de minimis aid. The event must be a specific trade fair or exhibition. Customer visits are not eligible under these rules, as the purpose of the support is to reach a large and diverse group of potential customers. We may support the cost of premises or stands outside the main exhibition area if they are clearly linked to the trade fair. Stands at other venues that are not considered trade fairs or exhibitions are not eligible.

Aid intensity 

The maximum grant rate is 50% of eligible costs.

Exceptions 

Funding cannot be provided for ordinary operating costs or exports; see section 4.2 (for example, funding cannot be provided for establishing and operating distribution networks).

Grant amounts exceeding EUR 2.2 million per company per year must be notified to ESA.

Purpose of the funding 

Costs associated with participation in projects within the framework of European territorial cooperation pursuant to Regulation 1299/2013 ‘specific provisions for the support from the European Regional Development Fund to the European territorial cooperation goal’ or Regulation 2021/1059 ‘specific provisions for the European territorial cooperation goal (Interreg) supported by the European Regional Development Fund and external financing instruments’.

Support may be granted for a range of measures and purposes within the collaborative projects referred to above. If we consider providing support for such purposes or activities, please refer to the rules in Articles 20 and 20a of the GBER.

Purpose of the funding 

Support for newly established small, unlisted companies during the first five years after registration, provided that the company:

a) has not taken over the activities of another business, unless the turnover related to the acquired activities accounts for less than 10% of the aid recipient's turnover in the financial year preceding the acquisition;

b) has not yet paid out dividends/group contributions; and

c) has not acquired another business or been formed through a merger, unless the turnover of the acquired business accounts for less than 10% of the aid recipient’s turnover in the financial year preceding the acquisition, or the turnover of the company formed through the merger is less than 10% higher than the combined turnover of the merged companies in the financial year preceding the merger.

Notes 

Company = group

Under Article 22 of the GBER, ‘undertakings’ are understood to mean corporate groups. This means that for applicants belonging to a corporate group, the age of the group will apply. For example, ‘spin-off’ companies within a corporate group will not qualify for aid under Article 22 of the GBER if the group is more than five years old.

Transfer of activities

The condition in point (a) will not be met if the same activity is taken over. Development and commercialisation, for example, will typically be different activities. If ‘commercialisation company’ A takes over intellectual property rights (IPR) from ‘development company’ B, the companies will be engaged in different activities. This means, for example, that cases where IPR is transferred to a spin-off for commercialisation will not normally fall within the scope of point (a). Production and commercialisation may also be different activities. For example, if a newly established company begins commercialising a product that has not previously been commercialised, or begins commercialising it in a geographical market where the product has not previously been introduced, this commercialisation may be considered a new economic activity. Point (a) covers not only the takeover of another undertaking’s entire activity, but also a partial takeover. As ‘undertakings’ in this context are understood to mean groups of companies, the takeover of an activity from another company within the same group will fall outside the scope of point (a).

Date of approval

Please note that the grant must be approved within five years of registration. Applying for a grant does not pause this deadline.

Merger

Notwithstanding point (c), companies established through a merger between companies that each qualified for aid under Article 22 of the GBER may receive aid for up to five years from the registration date of the oldest company.

Incentive

There is no incentive effect requirement for this type of support. See section 4.1 of our funding policy.

‘In difficulty’

Support may be granted even if the company is ‘in difficulty’; see section 4.3.

Duty to disclose information

The recipient of aid under Article 22 of the GBER must be informed in the offer letter that the aid has been granted in accordance with these rules, and that the company is required to disclose that it has received

GBER Article 22 aid when applying for new aid. A standard special condition (No. 21.4), ‘EEA rules – duty of disclosure’, has been drawn up and must be used in such cases.

Eligible costs

Support may be granted for all types of costs, except export aid. See the definition of export aid in section 4.2. However, all export promotion measures that comply with Articles 18 (see section 5.2.2) and 19 (see section 5.2.3) of the GBER may be supported.

Company size 

Small businesses. For other businesses, startup funding must still be provided in accordance with the de minimis aid rules or, where applicable, other aid categories under the GBER for which the service has been notified.

Forms of support 

Innovation loans

Maximum term: 10 years. Maximum loan amount: EUR 1.1 million, or up to EUR 1.65 million in designated regional aid areas. For terms between 5 and 10 years, the amount may be multiplied by the ratio of 10 to the loan term. For terms of less than 5 years, the amount may be multiplied by 10/5, meaning it may be doubled.

Financial guarantees

Maximum term: 10 years. Maximum financial guarantee amount: EUR 1.65 million, or up to EUR 2.48 million in designated regional aid areas. For terms between 5 and 10 years, the amount may be multiplied by the ratio of 10 to the term of the financial guarantee. For terms of less than 5 years, the amount may be multiplied by 10/5, meaning it may be doubled. The financial guarantee may not cover more than 80% of the underlying loan or credit facility.

Grant

Maximum grant amount: EUR 500,000, or EUR 750,000 in designated regional aid areas.

For small innovative companies, the maximum amounts stated above in a), b) and c) may be doubled.

When several funding instruments are used, the combined proportions of the maximum amounts for each instrument must not exceed 100%. For example, if a loan of EUR 1.32 million with a 10-year term has been granted to a business in a rural area, corresponding to 80% of the maximum loan amount, a grant of 20% of the maximum grant amount, or EUR 150,000, may also be awarded.

Definition 

‘Innovative companies’ are companies that:

• that, based on an assessment by an external expert, can demonstrate that they will, in the foreseeable future, develop products, services or processes that are new or substantially improved compared with the current state of the art in the industry, and that involve a risk of technological or industrial failure,
• where research and development costs account for at least 10% of total operating costs in at least one of the three years preceding the award of the funding, or, for a startup without historical financial statements, in up-to-date interim financial statements certified by an auditor,
• which, during the three years preceding the award of aid, has either i) received the European Innovation Council (EIC) ‘Seal of Excellence’ quality label, subject to specific conditions, or ii) received an investment from the EIC Fund, for example under the Accelerator programme,
• which, during the three years preceding the granting of the aid, i) has participated in an activity under the Commission's CASSINI Space Entrepreneurship Initiative (e.g. Business Accelerator or Matchmaking), or ii) has received investment from the CASSINI Seed and Growth Funding Facility or the InnovFin Space Equity Pilot (ISEP), or iii) has received a CASSINI Prize, or iv) has received funding under Regulation 2021/695 in the field of space research resulting in the creation of a new business, or v) has received funding as a beneficiary of a research and development action under the European Defence Fund pursuant to Regulation 2021/697, or vi) has received funding under the European Defence Industrial Development Programme pursuant to Regulation 2018/1092.

Purpose of the grant 

Research and development (R&D) aimed at developing new production methods, products or services.

For an activity to qualify as R&D, it must meet five criteria:

1. Novel: result in new knowledge at both company and industry level.

2. Creative / non-obvious: based on original hypotheses and concepts.

3. Uncertain outcome/result: high risk in terms of both cost/time and results

4. Systematic: the activity is planned and budgeted, and has a stated objective. Documentation is required throughout.

5. Transferable and/or reproducible: the new knowledge must have the potential to be transferred to others.

The rules distinguish between different stages of R&D. These stages are defined below.

Company size

Grants are available to companies of all sizes.

Eligible costs

• Personnel costs (researchers, technicians and support staff) to the extent and for the period they work on the R&D project. Read more about ‘approved hourly rates’ on our website. If personnel costs are approved as eligible costs in an R&D project and the company has received support towards personnel costs through differentiated employer’s National Insurance contributions, the support must be cumulated. See Chapter 3.
• Rental costs and/or depreciation for accounting purposes for instruments and equipment that must be acquired, to the extent and for the period they are used for the R&D activity. Please note the final bullet point.
• Rental costs and/or depreciation for accounting purposes (calculated in accordance with generally accepted accounting principles) for buildings and land that must be acquired, to the extent and for the period they are used in the R&D project. For land, transfer costs or the actual capital costs incurred are eligible for funding.
• Costs for contract research and the purchase or licensing of knowledge and patents from other businesses on an arm's-length basis, as well as costs for consultancy and equivalent services used exclusively for the project. Please note that our hourly rate rules for related parties apply when, for example, services are purchased from within the same group.
• Other new overheads and operating costs, including the cost of materials, supplies and similar products incurred directly in connection with the project.
• Please note: The hourly rates also include standard overhead costs covering costs already recorded in the company’s accounts. Examples include social security costs; rental and depreciation costs relating to instruments, machinery, tools, equipment and premises; finance; ICT; travel; pensions; insurance; and office supplies. Rental and depreciation costs for equipment already on the company’s balance sheet, as well as ordinary overhead and operating costs recorded in the company’s accounts, are therefore included in the standard overhead mark-up. Additional eligible costs may include rental or depreciation costs for instruments, equipment and buildings that must be acquired specifically to carry out the project covered by the application, as well as other new overhead and operating costs arising directly from the project, including materials and supplies used to produce prototypes and build pilot facilities.

Exceptions 

R&D projects where funding exceeds EUR 35 million per project for industrial research, EUR 20 million per project for experimental development or EUR 8.25 million per feasibility study must be notified to ESA.

Aid intensity

• Industrial research: the maximum funding rate is 50%
• Experimental development: the maximum funding rate is 25%
• Feasibility studies: the maximum aid intensity is 50%

The aid rates may be increased by 10 percentage points for medium-sized enterprises and 20 percentage points for small enterprises (SME bonus).

The aid rates for industrial research and experimental development may be increased by a further 15 percentage points if one of the following conditions is met:

i. the project involves ‘effective collaboration’ (collaboration bonus) (see the definition below)

• between Norwegian companies where at least one is an SME, or is carried out (companies registered outside the EEA cannot be said to ‘carry out’ projects in the EEA) in at least two different EEA states (regardless of the size of the companies), and none of the companies bears more than 70% of the eligible costs; or
• between a company and one or more research and knowledge dissemination organisations, where the latter bear at least 10% of the eligible costs and have the right to publish their own research results.

ii. the project results are widely disseminated through conferences, publications, open-access databases or free/open-source software (dissemination bonus).

iii. the aid recipient undertakes, within a reasonable period, to offer licences for the R&D results arising from the project receiving aid, provided that the relevant results are protected by the aid recipient. The licences must be offered at market price and on a non-exclusive and non-discriminatory basis (licensing bonus) to any undertaking in the EEA. Compliance in practice must be ensured through a (standardised) special condition which, among other things, requires the licensing opportunity to be publicised to a certain extent.

There are also two further bonuses, which cannot be combined with the bonuses above (i–iii). First, the aid intensity may be increased by 5 percentage points if the aid recipient is located in an assisted area. Second, a bonus of 25 percentage points may be granted and the notification threshold doubled for large-scale, binding cross-border projects involving many participants – a form of ‘IPCEI light’ – provided that the following conditions are met:

• The project must have been selected (by Innovation Norway/Norway) through an open call, based on an opportunity to become an integral part of a project jointly designed by at least three EEA states.
• The project must involve genuine collaboration between at least one Norwegian company and one company in the EEA if the aid recipient is an SME, and at least two companies in the EEA, located in different countries, if the aid recipient is a large enterprise.
• Either the results must be disseminated in the same way as for the dissemination bonus, but with the stricter requirement that dissemination must take place in at least three countries in the EEA, or licences to the R&D results must be offered in line with the licensing bonus mentioned above.

The aid intensities referred to above may not be increased beyond 80% of eligible costs.

Definitions 

‘Effective collaboration’: Collaboration between two or more independent parties. The companies must also either 1) collaborate to exchange knowledge or technology, or 2) collaborate to achieve a common objective based on a division of labour, with the companies jointly defining the scope of the collaborative project, contributing to its implementation, and sharing its risks and outcomes. Contract research does not qualify for a collaboration bonus, as it involves neither the exchange of knowledge or technology (purchasing does not constitute an exchange) nor the sharing of project risk.

It is important to note that the companies must incur their own R&D costs in the collaborative project. These costs may relate to either industrial research or experimental development (the companies do not need to be at the same stage of R&D). See the definitions below.

Collaboration between a company and a public institution (typically a hospital) may also qualify for a collaboration bonus in some cases. This requires the public institution to also engage in economic activity (see the definition of an undertaking in section 2.4 above), and the collaborative activities must form part of this economic activity rather than the general public duties within the institution’s remit.

Notes

In practice, most projects we support fall within what is known as experimental development. If a project includes elements from several R&D stages, the costs must be allocated to the relevant categories. In such cases, a standardised special condition must be applied, requiring the recipient to distinguish between costs incurred for the different R&D stages in the project accounts. The support paid must not exceed the approved rates for each category.

Indicative definitions of R&D stages

Basic research involves experimental or theoretical work undertaken primarily to acquire new knowledge about the underlying foundations of phenomena and observable facts, without any practical application or use in view. Public funding for basic research, which is usually carried out at universities and research institutions, is not considered State aid covered by the EEA Agreement, nor is it funding that we provide.

Industrial research is planned research or critical investigation aimed at acquiring new knowledge and skills needed to develop new products, processes or services, or to make significant improvements to existing products, processes and services (i.e. experimental development). This includes creating components for complex systems and may include building prototypes in a laboratory environment or in an environment with simulated interfaces to existing systems, as well as pilot lines, where necessary for the industrial research and particularly for validating generic technology.

Experimental development involves acquiring, combining, shaping and applying existing scientific, technological, commercial and other relevant knowledge and skills to develop new or improved products, processes or services. This may also include activities aimed at defining concepts, planning and documenting new products, processes or services.

Experimental development may include prototyping, demonstrations, pilot production, and the testing and validation of new or improved products, processes or services in environments representative of real-life operating conditions. The primary aim is to make further technical improvements to products, processes or services that have not yet reached their final form. This may include developing a commercially viable prototype or pilot where it must necessarily be the final product and is too costly to produce solely for demonstration and validation purposes.

Experimental development does not include routine or regular changes to existing products, production lines, manufacturing methods, services or other ongoing operations, even if such changes may constitute improvements.

Both industrial research and experimental development may focus on digital products, services and processes – such as supercomputing, blockchain technology, AI and big data. Where software development is a prominent component, the relevant sections of the R&D guidance note below should form the basis for a separate assessment of the R&D content.

Feasibility studies evaluate and analyse the potential of a future R&D project. They aim to support decision-making by objectively and rationally identifying strengths and weaknesses, opportunities and risks (SWOT analysis), as well as determining the resources needed to carry out the R&D project and ultimately achieve a successful outcome.

For more detailed descriptions of the various R&D stages, see the Frascati Manual on the OECD website (or the Norwegian excerpts published by the Research Council of Norway). It states that the main criterion for distinguishing R&D from related activities is that R&D contains ‘an appreciable element of novelty and the resolution of scientific and/or technological uncertainty’, and that ‘uncertainty exists when the solution to a problem is not readily apparent to someone familiar with the basic stock of common knowledge and techniques’.

Example of R&D stages

A study of a given class of polymerisation reactions under different conditions, the substances produced and their chemical and physical properties is basic research. An attempt to optimise one of these reactions with a view to producing polymers with specific physical or mechanical properties, thereby making them particularly suitable for certain applications, is industrial research. Experimental development, in turn, involves scaling up the process optimised at laboratory level and investigating and assessing potential methods for producing the polymer and possibly products that can be made from it.

Purpose of the funding 

Support for establishing or upgrading research infrastructure used for economic activities.

Definition

‘Research infrastructure’ means facilities, resources and related services used by the scientific community to conduct research in their respective fields. This includes scientific equipment or instruments; knowledge-based resources such as collections, archives or structured scientific data; ICT-based infrastructure such as networks, computing, software and communications; and any other means necessary to conduct research. Such infrastructure may be located at a single site or be distributed (that is, form an organised network of resources), in accordance with Article 2(a) of Regulation 723/2009 ‘Community legal framework for a European Research Infrastructure Consortium’.

Company size 

Funding is available to companies of all sizes.

Exceptions

Investment aid for research infrastructure exceeding EUR 35 million per infrastructure must be notified to ESA.

Eligible costs 

Investments in tangible and intangible assets: real estate, buildings and facilities, machinery and equipment (both new and used), as well as intellectual property rights (IPR), including patents, licences, know-how and more.

Aid intensity

The maximum aid intensity is 50% of eligible costs.

Notes 

If a research infrastructure is used for both economic and non-economic activities, separate accounts must be kept.

The price charged for operating or using the infrastructure must correspond to the market price.

The infrastructure must be openly accessible to multiple users, and access must be granted transparently and without discrimination. Companies that have financed at least 10% of the infrastructure's investment costs may be granted corresponding preferential access and more favourable terms, subject to clearly defined conditions (see Article 26 of the GBER).

Purpose of the funding 

Funding for the establishment or upgrade of technology infrastructure used for economic activity.

Definition of ‘technology infrastructure’: facilities, equipment and other resources, such as pilot lines, testing facilities and laboratories, as well as associated support services, used primarily by SMEs to test and develop new products, services or processes. This may involve testing and scaling up technologies that are progressing from industrial research to experimental development. This is also known as ‘testing and experimentation infrastructure’.

Company size 

Funding is available to companies of all sizes.

Exceptions 

Investment aid for technology infrastructure exceeding EUR 25 million per infrastructure must be notified to ESA.

Eligible costs 

Investments in tangible and intangible assets: real estate, buildings and facilities, machinery and equipment (both new and used), as well as intellectual property rights (IPR), including patents, licences, know-how and more.

Aid intensity 

The maximum grant rate is 25% of eligible costs.

Small enterprises may receive an SME bonus of 10 percentage points, while medium-sized enterprises may receive 20 percentage points. If at least 80% of the infrastructure's capacity is allocated to SMEs, an additional bonus of 5 percentage points may be granted.

Notes 

The price charged for operating or using the infrastructure must correspond to the market price. If it is not possible to determine the market price by benchmarking against other operators, the price must cover costs and a reasonable margin.

The infrastructure must be openly accessible to multiple users, and access must be granted on a transparent and non-discriminatory basis. Companies that have financed at least 10% of the infrastructure's investment costs may be granted corresponding preferential access and more favourable terms, subject to clearly defined conditions (see Article 26a of the GBER).

Purpose of the funding

Investment aid for establishing or upgrading innovation clusters, and operating aid for such clusters.

Definition

‘Innovation clusters’: Structures or organised groups of independent parties (e.g. innovative startups, small, medium-sized and large enterprises, research institutes and technology infrastructure operators (see Article 26a of the GBER), knowledge dissemination organisations, EDIHs, non-profit organisations and other similar economic actors) that aim to stimulate innovative activity and new forms of collaboration through promotion, shared use of facilities and the exchange of knowledge and expertise, as well as by contributing effectively to knowledge transfer, the dissemination of information and collaboration between enterprises and other organisations in the cluster.

Company size

The funding is available to companies of all sizes.

Exceptions

Support for innovation clusters exceeding EUR 10 million per cluster must be notified to ESA.

Notes

Operating aid for innovation clusters may only be granted to the legal entity that operates the innovation cluster (the cluster administrator). This may be a single legal entity, such as a limited company, or a consortium, meaning a small group of companies that jointly perform the cluster administrator's duties. Investment aid may only be granted to the owner of the cluster.

Please note that GBER Article 27 explicitly requires all parties involved – namely the owner, the cluster administrator (which may be a consortium) and the cluster participants – to keep accounts of their own project costs and income in accordance with the accounting standards applicable to each undertaking. This ensures that cluster support does not constitute State aid to the participants themselves. This means that previous arrangements, such as documenting participants’ in-kind contributions through timesheets, cannot continue. The cluster administrator remains free to purchase services, including from cluster participants, provided that the costs are eligible under GBER Article 27; see below. The cluster administrator may sell services covered by GBER Article 28 (innovation advisory and innovation support services) using a ‘pass-through’ model, under which these services may be subsidised through funding awarded via a cluster administrator; see section 5.3.5.

Access to the cluster's premises, facilities and activities must be open to multiple users and granted on a transparent and non-discriminatory basis. Companies that have financed at least 10% of the investment costs may be granted preferential access and more favourable terms on clearly defined conditions (see Article 27 of the GBER).

The fee charged for using the cluster's facilities and participating in its activities must reflect the market price or cover the costs plus a reasonable margin.

Aid objective: investment aid

For establishing or upgrading innovation clusters.

Eligible costs

Investments in tangible and intangible assets: real estate, buildings and facilities, machinery and equipment (both new and used), as well as intellectual property rights (IPR), including patents, licences, know-how and more.

Aid intensity 

The maximum aid intensity is 50% of eligible costs. The aid intensity may be increased by 5 percentage points for innovation clusters within the assisted areas (regional bonus).

Purpose of aid: operating aid

For the operation of innovation clusters for up to 10 years (calculated from the first period of operating aid).

Eligible costs

Personnel and administrative costs (including overheads), in accordance with the ‘approved hourly rates’ on our website, relating to:

a) Initiatives within the cluster to facilitate collaboration, information exchange and the coordination/delivery of tailored business support services. Please note that these are organisational costs, not costs related to the delivery itself.

b) Promotion of the cluster to increase the proportion of new businesses or organisations in the cluster and raise its visibility.

c) Management of the cluster's facilities and organisation (but not delivery) of educational programmes, workshops and conferences to encourage knowledge sharing, networking and cross-border cooperation.

Aid intensity

The maximum aid intensity is 50% of eligible costs during the period for which the aid is granted.

Eligible costs

a) Costs associated with obtaining, validating and protecting patents and other intellectual property rights.

b) Costs of seconding highly qualified personnel from a research and knowledge dissemination organisation or a large enterprise to work on research, development and innovation in a newly created role within the aid recipient's business, provided that this does not replace existing personnel.

c) Costs for innovation advisory and innovation support services, for example when such services are provided by innovation clusters or technology infrastructure organisations. As outlined below, support for such services may, for example, be provided through an innovation cluster as so-called ‘pass-through’ support.

Definitions

‘Highly qualified personnel’: Staff with a degree from a university or other higher education institution and at least five years of relevant professional experience, which may also include doctoral studies.

‘Innovation advisory’: Advisory, assistance and training in knowledge transfer; the acquisition, protection and exploitation of intellectual property rights; and the use of standards and related regulations. The term also includes consultancy, assistance and training relating to the use or introduction of innovative technologies and solutions, including digital solutions.

‘Innovation support services’: Access to office space, databases, libraries, market research, laboratories, quality labelling, testing and certification to develop more efficient products, production methods or services, including the implementation of innovative technologies and solutions (particularly digital ones).

Exceptions

Innovation aid exceeding EUR 10 million per company per project must be notified to ESA.

Company size

Funding is only available to SMEs.

Aid intensity

The maximum aid intensity is 50% of eligible costs. However, the aid intensity may be increased from 50% to 100% for the costs of innovation advisory and innovation support services, provided that the total amount of aid for such advisory and services does not exceed EUR 220,000 per company/group over a three-year period.

Notes

Disclosure obligation for aid exceeding 50%: When aid is granted at an increased rate (from 50% up to and including 100%), the offer letter must inform recipients of aid under Article 28 of the GBER that the aid has been granted in accordance with these rules. It must also inform the company that it is required to disclose any aid received under Article 28 of the GBER when applying for further aid. A standard special condition (No. 21.5), ‘EEA rules – disclosure obligation’, has been drawn up and must be used in such cases.

‘Pass-through’: Article 5 of the GBER sets out a fundamental requirement that aid must be transparent, as is the case with grants, for example. As a general rule, aid may not be provided through a facilitator or representative, partly because this would make the aid non-transparent. The December 2023 revision of the GBER introduced an exception by allowing innovation support and innovation advisory services to be subsidised under Article 28 of the GBER through the provider of these services. The provider may, for example, be a research infrastructure operator, a technology infrastructure operator or an innovation cluster, including an EDIH. Article 5 of the GBER sets out several cumulative conditions that must be met:

• The benefit received by purchasers of the services consists of price reductions or discounts that can be quantified and whose value can be documented or demonstrated.
• The discounts and the rules for awarding them to SMEs applying for support must be made public before the relevant service provision begins.
• The service provider must retain documentation of the aid awards for at least 10 years after the final delivery to ensure that the aid granted does not exceed the limits set out in Article 28 of the GBER.

Following these rules ensures that no State aid is passed on to the service provider, which will typically be an innovation cluster. Market-based pricing is required, as set out in the first bullet point, and involves documenting market prices (known as ‘benchmarking’). If this is not possible, pricing must be based on cost recovery plus a reasonable margin.

Definitions

‘Process innovation’: The implementation of a new or significantly improved production or distribution method (including significant changes in techniques, equipment or software) at the level of the undertaking. This excludes minor changes or improvements; increases in production capacity or service delivery capability through the addition of production or logistics systems that are largely similar to those already in use; discontinuing the use of a process; routine refinancing or capital increases; changes resulting solely from changes in factor prices; customisation; localisation; regular seasonal and other cyclical changes; and trading in new or significantly improved products.

‘Organisational innovation’: The implementation of an organisational method that is new to the company in its business model, workplace organisation or external relations. This excludes changes based on organisational methods already in use within the company, changes in management strategy, mergers and acquisitions, discontinuing a process, routine refinancing or capital increases, changes resulting solely from fluctuating input prices, customisation, localisation, normal seasonal and other cyclical fluctuations, and trading in new or significantly improved products.

Notes

GBER Article 29 covers implementation costs, often related to digital innovation, incurred when introducing a new organisational method or a new (or significantly improved) production or distribution method. However, costs associated with developing, for example, a new production process must be excluded from the eligible cost base under GBER Article 29. Such costs may instead be eligible for support under GBER Article 25. This means, among other things, that costs relating to prototypes or pilot plants cannot be supported under GBER Article 29.

For a more detailed description of the concept of innovation, the Oslo Manual is a useful resource.

Eligible costs

As under GBER Article 25.

Exceptions

Support for process and organisational innovation exceeding EUR 12.5 million per company per project must be notified to ESA.

Company size

Support may be granted to companies of any size. However, large companies are only eligible if they genuinely collaborate with an SME on the activity receiving support, and the SME incurs at least 30% of the total eligible costs.

Aid intensity

A maximum of 15% of eligible costs for large companies and a maximum of 50% of eligible costs for SMEs.

Purpose of the grant 

Support for R&D projects that are of interest to all companies in the relevant sector or subsector.

Company size

Support is available to companies of all sizes.

Eligible costs

The same as under Article 25 of the GBER.

Aid intensity

The maximum aid intensity is 100% of eligible costs.

Exceptions 

R&D projects where the grant exceeds EUR 20 million per industrial research project, EUR 15 million per experimental development project or EUR 7.5 million per feasibility study must be notified to ESA.

Notes 

Such support must be provided directly to a research and knowledge dissemination organisation and must not include direct, non-research-related support for companies that produce, process and market fishery and aquaculture products.

Before a project begins, the following information must be published online:

• information that the project will be initiated,
• the purpose of the project,
• the expected date of publication of the research results and where they will be published online, and
• confirmation that the research results will be made available free of charge to all companies in the relevant sector.

See GBER Article 30 for further details on the publication of research results and related matters.

Chapter 8 states that all the State aid rules described in this guide may be applied to the fisheries sector. This means that the other aid categories under Chapter 5 may also be used.

Purpose of the grant

Support to cover the cost of training initiatives within your company. To qualify for support, the training must go beyond mandatory training or continuing education required by national authorities. It must provide additional value to your company through competence building. Training considered part of day-to-day operations is therefore not eligible for support. We no longer distinguish between specific and general training.

Company size

Funding is available to companies of all sizes.

Eligible costs

• Personnel costs for external and/or internal course instructors, based on the ‘approved hourly rates’ on our website, for the time they spend participating in the training project.
• Ongoing expenses for course leaders and participants, including travel, meals and accommodation.
• Course materials, etc.
• Depreciation of tools and equipment to the extent and for the period that they are used exclusively for the relevant training project.
• Costs of advisory and consultancy services related to the training project.
• Staff costs for course participants, limited to the hours spent attending the course. Hours spent travelling to and from the course may be included. You may also include direct or indirect delivery costs, including administrative costs and the cost of hiring course premises, to the extent and for the period they are used for the project.

Exceptions

Aid amounts exceeding EUR 3 million per project must be notified to ESA.

Aid intensity

The maximum aid intensity is 50% of eligible costs. The aid intensity may be increased by 10 percentage points for medium-sized enterprises and 20 percentage points for small enterprises (SME bonus).

Notes

As noted above, we cannot support training measures related to day-to-day operations. This means we cannot support training that employees need to perform their roles under the company’s current operating model. In such cases, the training does not constitute competence building for the company. However, if the training is provided in connection with, for example, an investment project involving changes to the company’s operations, we can generally support training that enables employees to perform new or modified tasks.

If a project includes elements relating to both ongoing operations and competence building for the company, the elements relating to competence building may be supported as a separate part of the training project. In general, the Commission's practice indicates that the requirements for considering a training project a competence-building measure should not be overly strict.

If a company needs skills that are generally readily available but cannot be found within a reasonable distance of its location, a training initiative may be eligible for support even if it is necessary for the company’s current operations. Training that provides the company with such ‘standard’ skills will not give it an undue competitive advantage, but will instead help remove a competitive disadvantage. It will also help raise the overall level of skills in the market.

Scope

The general provision in Article 36 of the GBER cannot be applied to measures covered by the more specific provisions in Articles 36a, 36b and 38–48 of the GBER. This means you must always assess whether any of these other provisions apply before using Article 36 of the GBER.

In practice, some articles will rarely, if ever, be relevant to us, so this guidance does not cover them in detail. The omitted provisions are GBER Article 38b (aid for the facilitation of energy performance contracting), GBER Article 39 (investment aid for energy efficiency projects in buildings in the form of financial instruments), GBER Article 42 (operating aid for the promotion of electricity from renewable sources), GBER Article 43 (operating aid for the promotion of energy from renewable sources and renewable hydrogen in small projects and renewable energy communities), GBER Article 44 (aid in the form of reductions in taxes and levies under the Energy Taxation Directive ([Directive 2003/96/EC])) and GBER Article 44a (aid in the form of reductions in environmental taxes or parafiscal levies).

Before applying Article 36 of the GBER, a specific assessment must be made as to whether the following provisions can be applied instead: Article 36a of the GBER (investment aid for recharging or refuelling infrastructure), Article 36b of the GBER (investment aid for the acquisition of clean vehicles or zero-emission vehicles and for the retrofitting of vehicles), Article 38 of the GBER (investment aid for energy efficiency measures), Article 38 of the GBER (investment aid for energy efficiency measures other than in buildings), Article 38a of the GBER (investment aid for energy efficiency measures in buildings), Article 41 of the GBER (investment aid for the promotion of energy from renewable sources, renewable hydrogen and high-efficiency cogeneration), Article 45 of the GBER (investment aid for the remediation of environmental damage, rehabilitation of natural habitats and ecosystems, protection or restoration of biodiversity and implementation of nature-based solutions for climate change adaptation and mitigation), Article 46 of the GBER (investment aid for energy-efficient district heating and/or cooling), Article 47 of the GBER (investment aid for resource efficiency and the circular economy) and Article 48 of the GBER (investment aid for energy infrastructure).

The assessment of whether a measure falls within any of the more specific provisions must be based on the measure's aid objective, i.e. whether the project (or activities), by virtue of its objective, falls within the scope of the article, rather than on other parameters. For example, if a measure initially falls within the scope of GBER Article 47 on the basis of its aid objective, but assessing the eligible costs and the requirement for a counterfactual scenario under that article gives rise to significant uncertainty and/or additional work, GBER Article 36 cannot be used as a fallback (as it provides an exemption from the requirement for a counterfactual scenario). In such cases, the measure will fall within the scope of GBER Article 47 because of its aid objective, even if it may not necessarily qualify for aid under that article due to specific requirements for determining eligible costs or other requirements that are subordinate to the aid objective. Accordingly, ‘aid objective’ refers only to activities that may, in principle, receive aid under the provision. References to ‘aid objective’ must therefore often be read in conjunction with references to possible ‘exemptions’ in the guidance. The detailed requirements concerning eligible costs, aid intensity, award procedures, etc. relate to how the aid is to be calculated and are subordinate to the aid objective.

Purpose of the aid

Investments in environmental protection measures by the aid recipient, including support to stop and reduce greenhouse gas emissions, that go beyond the statutory EU environmental requirements (even if Norwegian environmental requirements are stricter), increase the level of protection where no EU standards exist, or comply with statutory EU environmental requirements that have been adopted but have not yet entered into force. In the latter case, the supported investment must also be completed at least 18 months before the relevant EU standard enters into force.

This provision cannot be applied to investments in equipment, machinery and industrial production facilities that use fossil fuels, including natural gas. This does not affect the possibility of supporting the installation of supplementary components that improve the environmental performance of existing equipment, machinery and industrial production facilities, provided that the investment does not lead to an increase in production capacity or higher consumption of fossil fuels.

For investment projects related to dedicated infrastructure as described below, the increased level of environmental protection may also result from the activities of another entity in the infrastructure chain.

Investments in equipment and machinery insofar as they are powered by renewable hydrogen or hydrogen-based fuels whose energy content is derived from renewable energy sources other than biomass and which have been produced in accordance with the methodology for renewable liquid or gaseous transport fuels of non-biological origin set out in Directive 2018/2001 and its implementing and delegated acts.

Investments in infrastructure to the extent that it is used to transport renewable hydrogen.

Investments in installations, equipment and machinery that produce or use hydrogen produced using electricity and that does not qualify as renewable hydrogen, provided it can be demonstrated that the hydrogen achieves life-cycle greenhouse gas emission savings of at least 70% compared with fossil fuels with emissions of 94g CO2eq/MJ (2.256 tCO2eq/tH2) (assessed in accordance with the final sentence of the second subparagraph of Article 1b). In addition, only hydrogen that meets the above requirement for life-cycle savings may be produced or used throughout the lifetime of the investment.

Investments in dedicated infrastructure that transports hydrogen produced using electricity and that does not qualify as renewable hydrogen, provided it can be demonstrated that the hydrogen achieves lifecycle greenhouse gas emission savings of at least 70% compared with fossil fuels with emissions of 94g CO2e/MJ (2.256 tCO2e/tH2). Dedicated infrastructure means assets listed in Article 2(130)(a) to (g) of the GBER that are built and adapted to the needs of one user or a small group of users identified in advance. In addition, only hydrogen that meets the above requirement may be transported throughout the investment's lifecycle, and a declaration must be submitted to us confirming that the aid recipient accepts this obligation.

Investments in carbon capture and transport that meet the specific conditions set out in provision (2a).

When the purpose of the aid is to reduce or avoid direct emissions, it must be ensured that the aid does not merely shift emissions from one sector to another, but reduces overall emissions. In particular, when the purpose of the aid is to reduce greenhouse gas emissions, it must be ensured that the aid does not merely shift emissions from one sector to another, but reduces overall emissions.

Definition 

Environmental protection: Any action or activity designed to reduce or prevent pollution, adverse environmental impacts or other damage to the physical environment (including air, water and soil), ecosystems or natural resources resulting from human activities. This includes mitigating climate change, reducing the risk of such damage, protecting and restoring biodiversity, and using natural resources more efficiently. It also includes energy-saving measures, the use of renewable energy sources and other techniques that reduce greenhouse gas emissions and pollution, as well as transitioning to circular economy models to reduce the use of virgin raw materials and improve efficiency. Environmental protection also covers actions that strengthen resilience and minimise vulnerability to climate change.

Company size

Funding is available to companies of all sizes.

Eligible costs

Only costs directly related to achieving a higher level of environmental protection are eligible for support.

Where the supported investment involves installing an additional component in an existing facility and there is no less environmentally friendly alternative investment, the eligible costs comprise the total investment costs.

Where the supported investment consists of constructing dedicated infrastructure for hydrogen, waste heat or CO2 that is necessary to improve environmental protection (as described in paragraphs 2 and 2a of the Article), the eligible costs are the total investment costs. Costs for constructing or upgrading storage facilities are not eligible, except for storage facilities for renewable hydrogen and hydrogen produced using electricity that does not qualify as renewable hydrogen, provided it can be demonstrated that the hydrogen achieves life-cycle greenhouse gas emission savings of at least 70% compared with fossil fuels at 94g CO2eq/MJ (2.256 tCO2eq/tH2).

In other cases, the additional costs related to environmental protection are calculated by comparison with the scenario that would have been implemented without the aid. The alternative scenario must correspond to an investment with a similar production capacity and lifespan that complies with applicable EU standards. The alternative scenario must be credible in light of legal requirements, market conditions and incentives arising from the EU Emissions Trading System. The eligible costs are determined as follows:

a) where the alternative investment corresponds to normal business practice in the sector or for the activity concerned, the eligible costs consist of the additional costs compared with a comparable, less environmentally friendly investment;

b) where the same investment would have been made without aid, but at a later date, the eligible costs shall consist of the difference between the investment costs of the aided investment and the discounted net present value of the costs of the later investment;

c) where the alternative is to keep existing installations and equipment in operation, the eligible costs consist of the difference between the supported investment and the discounted net present value of the costs associated with maintaining, repairing and modernising the existing installations and equipment;

d) in the case of leased equipment, the eligible costs consist of the difference between the net present value of the leasing costs for the supported equipment and the net present value of the leasing costs for the less environmentally friendly equipment that would have been leased in the absence of aid. Costs associated with operating the equipment or installation (fuel, insurance, maintenance and other consumables) are not included in the leasing costs, regardless of whether they form part of the leasing agreement.

It is also possible to support an investment without calculating the additional costs related to environmental protection compared with the scenario that would have been implemented without the aid, and without awarding the aid through an open competitive process. In such cases, the eligible costs comprise the investment costs directly linked to achieving a higher level of environmental protection, and the maximum aid intensities and aid bonuses set out below are halved.

Exceptions 

Aid amounts exceeding EUR 30 million per company per project must be notified to ESA.

Aid intensity

The maximum aid intensity is 40% of eligible costs. If the investment results in a 100% reduction in greenhouse gas emissions, the maximum aid intensity increases to 50%. However, this does not apply to investments involving the use of biomass. For investments related to CCS and/or CCU, the maximum aid intensity is 30% of eligible costs.

The above aid intensities may be increased by 10 percentage points for medium-sized enterprises and 20 percentage points for small enterprises (SME bonus). In addition, the aid intensity may be increased by 5 percentage points within the assisted areas (regional bonus).

Funding of up to 100% of eligible investment costs may be provided if it is awarded through an open competition.

As an alternative to the above, the aid intensity may be limited to the difference between the investment costs directly related to achieving the increased level of environmental protection and the investment's operating profit. In this case, the operating profit must be deducted from the eligible costs before the aid is awarded, based on reasonable projections. In addition, the actual operating profit must be verified retrospectively, and a mechanism must be established for recovering any excess aid awarded.

Limited review

Please note: Below, we outline only some of the main conditions for using this article.

Purpose of the funding

Investments in charging and refuelling infrastructure that supplies vehicles, mobile terminal equipment or mobile ground-handling equipment with electricity or hydrogen, except in ports.

Company size

Funding is available to companies of all sizes.

Eligible costs

Costs related to the construction, installation, upgrade or expansion of charging and refuelling infrastructure.

Aid intensity

Up to 100% if the grant is awarded through an open competition.

Otherwise, the maximum aid intensity is 20% of eligible costs if the aid is awarded under a scheme. The aid intensity may be increased by 20 percentage points for medium-sized enterprises and 30 percentage points for small enterprises (SME bonus).

In addition, the aid intensity may be increased by 5 percentage points within the regional aid area (regional bonus).

Limited review

Please note: Only some of the main conditions for using this article are set out below.

Purpose of the aid

Investments in the acquisition of clean vehicles or zero-emission vehicles for transport by road, rail, inland waterway or sea, as well as in upgrading vehicles other than aircraft so that they qualify as clean vehicles or zero-emission vehicles.

Company size

Funding is available to companies of all sizes.

Eligible costs

The additional costs of purchasing or leasing clean or zero-emission vehicles, and the investment costs of upgrading vehicles. 

Aid intensity

Up to 100% for zero-emission vehicles and up to 80% for clean vehicles if the funding is awarded through an open competition.

The maximum aid intensity in all other cases is 20% of eligible costs if the aid is awarded under a scheme. The aid intensity may be increased by 10 percentage points for zero-emission vehicles, 20 percentage points for medium-sized enterprises and 30 percentage points for small enterprises (SME bonus).

Purpose of the funding

Investments that will enable your company to use energy more efficiently in areas other than buildings

Company size

Funding is available to companies of all sizes.

Eligible costs

The same eligible costs as under section 5.5.1. If there is no alternative investment and the project is solely aimed at improving energy efficiency, the entire investment may be eligible for support.

It is also possible to support an investment without calculating the additional costs related to environmental protection compared with the scenario that would have been implemented without the aid, and without awarding the aid through an open competitive process. In such cases, the eligible costs comprise the investment costs directly linked to achieving a higher level of environmental protection, and the maximum aid intensities and aid bonuses set out below are halved.

Exceptions

Funding cannot be granted for improvements made to ensure that the company complies with standards that have been adopted but have not yet entered into force. An individual funding award cannot exceed EUR 10 million without notification to ESA.

Aid intensity

The maximum aid intensity is 30% of eligible costs. The aid intensity may be increased by 10 percentage points for medium-sized enterprises and 20 percentage points for small enterprises (SME bonus).

In addition, the aid intensity may be increased by 5 percentage points within the regional aid area (regional bonus).

Support of up to 100% of eligible investment costs may be provided if it is awarded through an open competitive process.

Purpose of the funding

Investments that will enable your business to use energy more efficiently in buildings.

The funding must improve the building's energy performance, measured in terms of primary energy, by at least:

i) 20% – for the renovation of existing buildings – compared with the situation before the investment, or

ii) 10% compared with the situation before the investment, for renovation measures involving the installation or replacement of only one type of building element as defined in Article 2(9) of Directive 2010/31/EU (the Energy Performance of Buildings Directive), provided that such targeted renovation measures do not account for more than 30% of the portion of the scheme's budget allocated to energy efficiency, or

iii) 10% – for new buildings – compared with the threshold set out in national requirements for nearly zero-energy buildings implementing Directive 2010/31/EU (the Energy Performance of Buildings Directive).

The original primary energy demand and estimated improvement shall be determined using an energy performance certificate in accordance with Article 2(12) of Directive 2010/31/EU (the Energy Performance of Buildings Directive).

The aid under points i–iii may also be combined with a range of related measures (under paragraph 7 of the Article).

Support may also be granted for energy efficiency improvements related to indoor heating or cooling.

Funding cannot be provided for investments made to comply with mandatory EU environmental requirements, investments in combined heat and power generation, district heating and/or district cooling, or energy equipment powered by fossil fuels, including natural gas. However, funding may be provided to comply with mandatory EU environmental requirements that have been adopted but have not yet entered into force.

Company size

Funding is available to companies of all sizes.

Eligible costs

Total investment costs. Costs that are not directly related to achieving greater energy efficiency are not eligible for support.

Exceptions

Aid exceeding EUR 30 million per undertaking per project must be notified to ESA when related measures are combined.

Aid intensity

The maximum aid intensity is 30% of eligible costs, and no more than 25% when installing or replacing only one building element as defined in Article 2(19) of Directive 2010/31/EU (the Energy Performance of Buildings Directive).

The aid intensity will be reduced when the investment aims to comply with statutory EU environmental requirements that have been adopted but have not yet entered into force.

The aid intensity may be increased by 10 percentage points for medium-sized enterprises and 20 percentage points for small enterprises (SME bonus).

In addition, the aid intensity may be increased by 5 percentage points within the regional aid area (regional bonus).

In addition, subject to certain conditions (set out in paragraph 16 of the provision), the aid intensity may be increased by 15 percentage points where the investment improves the building's energy performance by at least 40%, measured in terms of primary energy.

Purpose of the grant

Investments to promote renewable energy sources, renewable hydrogen and high-efficiency cogeneration, excluding electricity produced from renewable hydrogen.

Investments in electricity storage projects, but only where the investment concerns projects that combine renewable energy and behind-the-meter storage, and where both elements form part of the same investment, or where the storage is connected to an existing renewable energy generation installation. Each year, at least 75% of the energy stored by the storage component must come from a directly connected renewable energy generation installation. Both investment components (generation and storage) are considered a single integrated project when assessing whether the notification thresholds in Article 4 of the GBER have been exceeded. The same rules apply to thermal energy storage directly connected to a renewable energy generation installation.

Investments in the production and storage of biofuels, bioliquids, biogas (including biomethane) and biomass, but only where the supported fuel meets the sustainability and greenhouse gas emissions reduction requirements under Directive (EU) 2018/2001 (the Renewable Energy Directive), its implementing provisions and provisions adopted under the delegated procedure. In addition, the fuel must be produced from a feedstock listed in Annex IX to the Directive. Each year, at least 75% of the fuel content of the storage component must come from a directly connected installation producing biofuels, bioliquids, biogas (including biomethane) and biomass. Both investment components (production and storage) are considered to constitute a single integrated project when assessing whether the thresholds in Article 4 of the GBER have been exceeded.

Investments in hydrogen production, but only for installations that exclusively produce renewable hydrogen. For renewable hydrogen projects comprising an electrolyser and one or more renewable energy generation units connected to a single grid connection point, the electrolyser capacity must not exceed the combined capacity of the renewable energy generation units. Investment aid may cover dedicated infrastructure for the transmission and distribution of renewable hydrogen, as well as storage facilities for renewable hydrogen.

Investments in high-efficiency cogeneration, but only where they result in overall energy savings compared with the separate production of heat and electricity, as set out in Directive 2012/27/EU (the Energy Efficiency Directive) or in subsequent legislation that replaces the Directive in whole or in part.

Investments in electricity storage and thermal energy storage directly linked to high-efficiency cogeneration based on renewable energy sources, provided that the conditions for investments in electricity storage projects described above are met.

Investments in high-efficiency cogeneration are not eligible for support if the support applies to an installation powered by fossil fuels, except for natural gas where compliance with the 2030 and 2050 climate targets is ensured in accordance with section 4.30 of Annex I to Regulation (EU) 2022/1214 (technical screening criteria for natural gas and nuclear energy under the Taxonomy Regulation).

Company size

Funding is available to companies of all sizes.

Eligible costs 

Total investment costs. 

Exceptions

Aid may only be granted for new facilities, or for conversions or upgrades where these affect significant parts of the facility and extend its expected service life. The aid must be independent of production. Aid exceeding EUR 30 million per undertaking per project must be notified to the EFTA Surveillance Authority (ESA).

Aid intensity

The maximum aid intensity is 45% of eligible costs for investments in the production of renewable energy, including heat pumps that comply with Annex VII to Directive (EU) 2018/2001 (the Renewable Energy Directive), renewable hydrogen and high-efficiency cogeneration based on renewable energy sources. For other investments, the maximum aid intensity is 30% of eligible costs.

The aid intensities may be increased by 10 percentage points for medium-sized enterprises and by 20 percentage points for small enterprises (SME bonus).

Funding of up to 100% of eligible investment costs may be provided if it is awarded through an open competitive process.

Purpose of the funding

A) Remediation of environmental damage, including damage to the quality of soil, surface water or groundwater, or to the marine environment.

B) Restoration of habitats and ecosystems in a degraded state.

C) Protection or restoration of biodiversity or ecosystems to help bring ecosystems into good condition or protect ecosystems that are already in good condition.

D) Implementation of nature-based solutions for climate change adaptation and mitigation.

Company size

Funding is available to businesses of all sizes.

Eligible costs

The costs incurred for improvement or rehabilitation work (aid objective A or B), less the estimated increase in the value of the property as assessed by an independent expert, and the total costs of protection, restoration or implementation work that contributes to aid objective C or D.

Exceptions

We cannot provide funding to remedy damage caused by natural disasters, such as earthquakes, avalanches, landslides, floods, tornadoes, hurricanes or naturally occurring uncontrolled fires. We also cannot provide funding for repairs or rehabilitation related to the closure of power plants and mining operations.

Aid intensity

The maximum aid intensity is 100% of eligible costs related to remedial or rehabilitation work (aid purpose A or B), and 70% of eligible costs related to protection, restoration or implementation work (aid purpose C or D).

The aid rates for protection, restoration or implementation work (aid purpose C or D) may be increased by 10 percentage points for medium-sized enterprises and by 20 percentage points for small enterprises (SME bonus).

Notes

If the company or person responsible for the damage can be identified, support should not normally be granted. If the responsible party cannot be identified or is unable to cover the costs, the party that assumes responsibility for repairing the damage may receive support.

Purpose of the grant

Construction, expansion or upgrading of energy-efficient district heating and/or district cooling systems, including heating or cooling facilities and/or thermal storage solutions and/or the distribution network.

Support may only be granted to systems that are or will become energy efficient, as defined in Article 2(41) of Directive 2012/72/EU (the Energy Efficiency Directive). Where the system does not become fully energy efficient as a result of the supported work on the distribution network, further upgrades to the district heating and/or district cooling facilities required to meet the energy efficiency criterion must begin no later than three years after the supported work on the distribution network began.

Support cannot be granted for the construction or upgrading of production facilities based on fossil fuels, except for natural gas where it complies with the 2030 and 2050 climate targets in accordance with the criteria set out in Section 4.30 (high-efficiency cogeneration of heat/cool and power and power generation from fossil gaseous fuels) of Annex I to Regulation (EU) 2021/2139 (the Taxonomy Regulation).

Support for upgrading storage and distribution networks that transmit heating and cooling produced from fossil fuels may only be granted if

a) the distribution network is or will become suitable for transmitting heating or cooling produced from renewable energy sources and/or waste heat, and

b) the upgrade does not result in increased energy production from fossil fuels, except for natural gas where it complies with the 2030 and 2050 climate targets in accordance with the criteria set out in Section 4.30 (high-efficiency co-generation of heat/cool and power from fossil gaseous fuels) of Annex I to Regulation (EU) 2021/2139 (the Taxonomy Regulation).

Company size

Funding may be provided regardless of company size.

Eligible costs

Investment costs related to the construction, expansion or upgrade of energy-efficient district heating and/or district cooling systems.

Exceptions

Aid amounts exceeding EUR 50 million per company per project must be notified to ESA.

Aid intensity

The maximum aid intensity is 30% of eligible costs. The aid intensity may be increased by 10 percentage points for medium-sized enterprises and 20 percentage points for small enterprises (SME bonus). It may also be increased by 15 percentage points for investments based exclusively on renewable energy sources and/or waste heat, including cogeneration from renewable sources.

Alternatively, the maximum aid intensity may be set at 100% of the funding gap. In such cases, the aid must be limited to the minimum necessary to carry out the supported project or activity. This condition is met if the aid complies with the definition of the funding gap in Article 2(118) of the GBER. A detailed assessment of the net additional costs is not required if the amount of aid is determined through a procurement procedure.

Notes

Support may be granted for energy production based on renewable energy sources, including heat pumps in accordance with Annex VII to Directive (EU) 2018/2001 (the Renewable Energy Directive), waste heat or high-efficiency cogeneration, as well as thermal storage solutions. Support for energy production from waste may be based either on waste that meets the definition of renewable energy sources or on waste used as fuel in plants that meet the definition of high-efficiency cogeneration. Waste used as input fuel must not circumvent the waste hierarchy principle as defined in Article 4(1) of Directive 2008/98/EC (the Waste Framework Directive).

Purpose of the funding

Investments in resource efficiency and the circular economy within the following categories:

a) Investments that improve resource efficiency through i) a net reduction in the resources consumed (adjusted for any external effects) when producing a given output, compared with an existing production process used by the applicant or with alternative projects/activities that may serve as a basis for comparison when determining the additional costs/eligible costs, and/or ii) the replacement of primary feedstocks or raw materials with secondary (reused or recycled) feedstocks or raw materials.

b) Investments in preventing and reducing waste generation, preparing waste generated by the applicant for reuse, decontamination and recycling, or investments in equivalent preparation of waste generated by parties other than the applicant that would otherwise remain unused, be disposed of or be treated using a method lower in the order of priority set out in the waste hierarchy under Article 4(1) of Directive 2008/98/EC (the Waste Framework Directive), in a less resource-efficient manner or in another manner that would result in lower-quality recycling.

c) Investments in the collection, sorting, decontamination, pre-treatment and treatment of other products, materials or substances generated by the applicant or by parties other than the applicant, which would otherwise have been used or applied in a less resource-efficient manner.

d) Investments in the separate collection and sorting of waste with a view to preparing it for reuse or recycling.

Company size

Funding is available to companies of all sizes.

Eligible costs

The additional investment costs are determined by comparing the project's total investment costs with those of a less environmentally friendly project in one of the following ways, where the counterfactual scenario:

a) consists of a comparable investment that could realistically be made in a new or existing production process without support and that does not achieve the same level of resource efficiency,

b) entails that the waste is treated in a way that ranks lower in the waste hierarchy laid down in Article 4(1) of Directive 2008/98/EC (the Waste Framework Directive), or that the waste, other products, materials or substances are treated in a less resource-efficient way, or

c) consists of a comparable investment in a traditional production process that uses primary feedstock or raw materials, where the secondary (reused or recycled) product is technically and economically substitutable for the primary product.

For points (a) and (c), the counterfactual scenario must correspond to an investment with comparable production capacity and lifespan that complies with applicable EU standards. The counterfactual scenario must be realistic in light of legal requirements, market conditions and incentives.

If the investment involves installing an additional component in an existing facility for which there is no equivalent, less environmentally friendly alternative, or if you can demonstrate that the investment would not have been made without aid, the eligible costs are the total investment costs.

Exceptions

Aid under this provision cannot be granted for the disposal and recovery of waste to produce energy, or be linked to technologies that are already established as commercially viable business practices throughout the EEA. Such aid must be notified to the EFTA Surveillance Authority (ESA).

Aid intensity

The maximum aid intensity is 40% of eligible costs. The aid intensity may be increased by 10 percentage points for medium-sized enterprises and 20 percentage points for small enterprises (SME bonus). It may also be increased by 5 percentage points within the regional policy area (regional bonus).

Notes

The support is conditional on it not encouraging waste generation or increasing resource use.

Another condition is that support cannot be granted for investments made to comply with current EU standards. However, support may be granted to meet standards that have been adopted but have not yet entered into force, provided that the investment is carried out and completed at least 18 months before the standard enters into force.

‘Other products, materials or substances’ includes materials, products and substances other than waste, including by-products referred to in Article 5 of Directive 2008/98/EC (the Waste Framework Directive), residues from agriculture and forestry, wastewater, rainwater and sewage, minerals, nutrients, residual gases from production processes, and surplus products, parts and materials.

Purpose of the funding

Investments in the construction and upgrade of energy infrastructure.

Company size

Funding is available to companies of all sizes.

Eligible costs

Investment costs.

Exceptions

Investments in electricity and gas storage are not eligible.

Support for gas infrastructure may only be granted to infrastructure dedicated to hydrogen and/or renewable gases, or used to transport more than 50% hydrogen and renewable gases.

Aid amounts exceeding EUR 70 million per undertaking per project must be notified to ESA.

Aid intensity

Support of up to 100% of the funding gap may be granted. The support must be limited to the minimum necessary for the project or activity to be carried out. This condition is met if the support corresponds to the funding gap as defined in Article 2(118) of the GBER.

A detailed assessment of the net additional costs is not required where the amount of aid has been determined through a competitive auction, as the auction provides a reliable estimate of the minimum amount of aid required by potential beneficiaries.

Notes

The energy infrastructure must be subject to full tariff and access regulation in accordance with EU internal energy market legislation, of which we are largely a part.

Purpose of the grant

Studies/consultancy services, including energy audits, that are directly linked to the investments described above. Support may also be granted where the results of the studies/consultancy services do not lead to an investment described above.

Company size

Funding is available to companies of all sizes.

Eligible costs

Costs related to the surveys/studies, but only to the extent that they concern the investments referred to above

Exceptions

Aid cannot be granted for energy audits carried out to comply with an obligation under Directive 2012/27/EU (the Energy Efficiency Directive), unless they are conducted in addition to a mandatory audit. Aid exceeding EUR 15 million per undertaking per project must be notified to ESA.

Aid intensity

The maximum aid intensity is 60% of eligible costs. The aid intensity may be increased by 10 percentage points for medium-sized enterprises and 20 percentage points for small enterprises (SME bonus).

Funding purpose/activities

Investments or operations relating to museums, archives, libraries, cultural centres and venues, cinemas, theatres, opera houses, concert halls, other performing arts organisations, film archives and other similar arts and cultural infrastructure, organisations and institutions; tangible cultural heritage, including all forms of movable and immovable cultural heritage and archaeological sites, monuments, historic sites and buildings, as well as natural heritage linked to cultural heritage or formally recognised as cultural or natural heritage by a public authority; intangible cultural heritage in any form, including folklore traditions and crafts; arts or cultural events and performances, festivals, exhibitions and other similar cultural activities; educational activities in the fields of culture and the arts, as well as activities promoting an understanding of the diversity of cultural expression and raising awareness among the general public, including through the use of new technologies; and the writing, editing, production, distribution, digitisation and publication of music and literature, including translations.

Company size

Funding is available to businesses of all sizes.

Eligible costs

Investments in tangible or intangible assets, including the construction and preservation of cultural infrastructure; the acquisition of cultural heritage, including leasing, transfer of ownership or physical relocation; the safeguarding, preservation, restoration and rehabilitation of tangible and intangible cultural heritage; improving public access to cultural heritage, including through digitisation and other new technologies; cultural projects, collaborations, exchange programmes and grants, including selection and advertising costs as well as direct project costs.

Operating aid for the cultural institution’s ongoing or periodic activities, including exhibitions, performances, events and similar activities that form part of its normal operations; educational activities in the fields of culture and the arts, as well as activities that promote understanding of the diversity of cultural expression through education and public awareness programmes, including the use of new technologies; improving public access to the cultural institution or cultural heritage sites and related activities, including digitisation costs and similar expenses; operating costs directly related to the cultural project or activity; costs for staff working for the cultural institution, cultural heritage site or a project; advisory and support services provided by external consultants and similar providers that arise directly from the project.

For the publication of music and literature, eligible costs are those associated with publication, including copyright costs, translators and editors, other editorial costs, graphic design and pre-press costs, etc.

Exceptions

Newspapers and periodicals, whether printed or electronic, are not eligible for support.

Investment aid exceeding EUR 165 million per project and operating aid exceeding EUR 82.5 million per company per year must be notified to ESA.

Aid intensity

For investment aid: The amount of aid must not exceed the difference between the eligible costs and the operating profit of the investment. The operating profit must be deducted from the eligible costs in advance, based on reasonable projections, or through a clawback mechanism. The infrastructure operator may retain a reasonable profit over the relevant period.

For operating aid: the aid may not exceed the amount necessary to cover operating losses and a reasonable profit over the relevant period. This must be ensured in advance based on reasonable projections, or through a clawback mechanism.

For aid not exceeding EUR 2.2 million, up to 80% of the eligible costs may be granted as an alternative to the two calculation methods mentioned above.

For aid for the writing and publication of music and literature as referred to in the final sentence of the first paragraph, the maximum aid amount must not exceed either the difference between the eligible costs and the project's discounted revenues or 70% of the eligible costs.

We may provide support for a range of audiovisual works. If we are to consider support for such purposes or activities, the rules set out in Article 54 of the GBER apply.

Support may be granted for a range of measures and purposes relating to sports and multifunctional recreational infrastructure. If we are to consider providing support for such purposes or activities, please refer to the rules in Article 55 of the GBER.

Support may be granted for a range of measures and purposes relating to local infrastructure. If we consider providing support for such purposes or activities, the rules set out in Article 56 of the GBER apply.

This article may be relevant as an alternative to regional investment aid; see section 5.1.

Investment aid may be granted to regional airports subject to specific criteria and provisions. Operating aid may also be granted. If support for regional airports is being considered, please refer to the rules in Article 56a of the GBER.

Purpose of the funding

Construction, replacement and upgrading of infrastructure, and dredging in ports or at port calls.

Definitions

Port infrastructure: Infrastructure and facilities for providing transport-related port services, such as berths for mooring ships, quay walls, breakwaters and floating jetties in tidal areas, inner basins, land reclamation and infill areas, alternative fuel infrastructure, and infrastructure for handling operational and cargo waste from ships.

Port facilities: (port superstructure) such as storage facilities, buildings (such as warehouses and terminal buildings), and mobile equipment (including cranes) at a port for the provision of transport-related port services.

Port access (access infrastructure): Any type of infrastructure required to ensure access by land, sea or river for users of a port, or within a port, such as roads, railway tracks, navigation channels and locks.

Dredging: The removal of sediment from the bottom of a waterway leading to a port or within a port. A project carried out within a single calendar year is considered a dredging project.

Company size

Funding is available to companies of all sizes

Eligible costs

Investment costs for the construction, replacement and upgrading of ports or port facilities, including planning costs, as well as dredging costs.

For support for charging and bunkering infrastructure supplying electricity, hydrogen, ammonia and methanol, eligible costs include the construction, installation, upgrade and expansion of the charging and bunkering infrastructure. This may also include associated technical equipment, including fixed, mobile or floating facilities; the installation or upgrade of electrical or other components, including electrical cables and transformers required to connect the charging or bunkering infrastructure to the grid or to a local electricity or hydrogen production or storage unit; as well as design work, site and road adaptations, installation costs and the costs of obtaining the necessary approvals.

Eligible costs may also include investments in the on-site production of renewable electricity or hydrogen, as well as investment costs for units that store renewable electricity or hydrogen. However, the nominal production capacity of such on-site production of renewable electricity or hydrogen may not exceed the maximum capacity of the charging or bunkering infrastructure to which it is connected.

Exceptions

Support for projects with project costs exceeding EUR 143 million must be notified to ESA. Costs relating to ‘non-transport-related’ activities, including industrial production, offices or commercial premises and port facilities, are not eligible for support.

Aid under this Article shall not be granted for the construction, installation or upgrade of bunkering infrastructure for the supply of fossil-based fuels, such as diesel, natural gas (in gaseous form (CNG) or liquefied form (LNG)), and liquefied petroleum gas (LPG).

When funding is granted for the construction, installation or upgrade of bunkering infrastructure for the supply of hydrogen, the recipient must commit to ensuring that the funded infrastructure supplies only renewable hydrogen by 2035 at the latest.

When funding is granted for the construction, installation or upgrade of bunkering infrastructure for the supply of ammonia or methanol, the recipient must commit to ensuring that, by 2035 at the latest, the funded infrastructure supplies only ammonia or methanol whose energy content is derived from renewable sources other than biomass and which is produced in accordance with the methods established for renewable liquid or gaseous transport fuels of non-biological origin in ‘Directive (EU) 2018/2001 and its implementing or delegated acts’.

Aid intensity

For investments in maritime ports: Up to 100% of eligible costs for projects costing up to EUR 22 million. For projects costing between EUR 22 million and EUR 55 million, support of up to 80% of the costs may be granted. For projects costing between EUR 55 million and EUR 143 million, support of up to 60% may be granted.

For investments in maritime port access and dredging: Up to 100% of eligible costs, up to EUR 143 million.

For investments in inland ports, port calls and dredging: Up to 100% of eligible costs, up to EUR 44 million.

For both categories, the costs may not exceed the difference between the eligible costs and the operating profit from the investment or dredging project. The estimated operating profit is deducted from the eligible costs either in advance or subsequently through a repayment mechanism.

The aid intensity may be increased by 5 percentage points within the assisted areas (regional bonus). However, the aid intensity may not exceed 100%.

For aid not exceeding EUR 5.5 million (maritime ports) and

EUR 2.2 million (inland ports), up to the following may be granted as an alternative to the above

80% of eligible costs.

Notes

Any concession or contract with a third party for port infrastructure or port calls that have received support must be awarded on a competitive, transparent, non-discriminatory and unconditional basis.

Ports that have received funding must be open to interested users on equal and non-discriminatory market terms.

Funding purpose/activities

We provide innovation loans and growth guarantees backed by guarantees/counter-guarantees from the European Investment Fund (EIF).

For innovation loans, we provide loans covered by an EIF guarantee. These loans may be granted under Articles 56d and 56e(10) of the GBER.

For growth guarantees, commercial banks provide loans covered by our portfolio guarantee, which is in turn covered by a counter-guarantee from the EIF. These loans are granted under Articles 56d and 56f of the GBER.

The EIF falls under the InvestEU Fund. The GBER contains specific rules on the compatibility of aid linked to financial products supported by the InvestEU Fund. Agreements with the EIF set out detailed rules for aid provided under an EIF guarantee.

We provide the aid as a loan or financial guarantee. The aid must generate new loans and cannot be used for refinancing.

For our innovation loans, the interest rate must be at least equal to the base rate of the reference rate at the time the loan is granted. See section 12.1 for more information about the reference rate. This minimum interest rate requirement does not apply to loans from commercial banks backed by a growth guarantee.

When applying the rules in Section 16 of the GBER, you do not need to assess what the aid will be used for, eligible costs, aid intensity or gross grant equivalent (GGE). There is no need for a separate assessment of the incentive effect. Loans or financial guarantees may be granted to undertakings subject to an outstanding recovery order from ESA. Another key benefit of basing aid on Section 16 of the GBER is that you do not need to determine whether the financial advantage arising from the EIF guarantee is subject to sufficient national control to constitute State aid, rather than aid provided directly from EU funds.

Company size

Innovation loans are available to SMEs or ‘small mid-caps’ (SMCs), which are companies that are not SMEs and have up to 499 employees.

Growth guarantees are only available to SMEs.

Maximum funding

The relevant GBER provisions in Section 16 set limits on the loan amount. Under Articles 56e(10) and 56f of the GBER, the aid is not linked to eligible costs. The maximum aid is calculated per undertaking (group), not per project. The aid recipient may have several outstanding loans. Under the growth guarantee, the borrower may therefore have loans from several commercial banks that have an agreement with us involving an EIF counter-guarantee, up to a total of EUR 8.25 million. The maximum amount applies to the total outstanding loan amount at any given time. If the borrower initially borrowed the maximum permitted amount and subsequently repaid the loan, they may be granted new loans up to the maximum permitted amount. However, the aid must be used to facilitate new loans. It cannot be used to refinance existing portfolios.

For innovation loans to SMEs and small mid-caps, the maximum amount is EUR 2.2 million.

For innovation loans to young or innovative SMEs and innovative small mid-caps, the maximum amount is EUR 16.5 million.

For innovation loans to SMEs and small mid-cap companies whose main activity is in an assisted area, the maximum amount is EUR 16.5 million. The funding cannot be used to relocate activities between EEA countries.

For growth guarantees, the maximum amount is EUR 8.25 million. The bank must have a risk exposure of at least 20% per transaction. This exposure does not need to rank pari passu with any funding from us. Loans backed by a growth guarantee may be granted to SMEs that are undertakings in difficulty.

Definitions

An SME is considered ‘young’ if it is unlisted and has been active for less than 10 years, or if fewer than 7 years have passed since its first commercial sale, cf. Article 56e(10)(a)(i) of the GBER. An SME is also considered ‘young’ if it starts a new activity where the initial investment exceeds 50% of its average annual turnover over the previous 5 years, cf. Article 56e(10)(a)(ii) of the GBER.

‘Innovative companies’ are described in section 5.2.5.

‘Relocation’ is described in section 5.1.

Cumulation

Aid provided through innovation loans (GBER Article 56e(10)) and growth guarantees (GBER Article 56f) may be granted in addition to aid with identifiable eligible costs, without restriction.

Support provided through innovation loans (GBER Article 56e(10)) and growth guarantees (GBER Article 56f) may be combined without restriction with other support without identifiable eligible costs granted under GBER Articles 56e(10) and 56f. For example, an SME that qualifies as an ‘innovative enterprise’ and carries out its main activity in an assisted area may receive loans totalling up to EUR 43.45 million (EUR 2.2 million under GBER Article 56e(10)(c), EUR 16.5 million under GBER Article 56e(10)(b), EUR 16.5 million under GBER Article 56e(10)(a) and EUR 8.25 million under GBER Article 56f). However, please note that an enterprise may only receive loans of up to EUR 16.5 million under GBER Article 56e(10)(a). In other words, this provision does not allow the same enterprise to receive loans of up to three times EUR 16.5 million based on the different subcategories in GBER Article 56e(10)(a)(i)–(iii).

Support provided through innovation loans (GBER Article 56e(10)) and growth guarantees (GBER Article 56f) may only be combined with other support without identifiable eligible costs granted under any other legal basis (such as GBER Article 22), up to the highest relevant overall financing threshold.

Overall

De minimis aid is aid of an amount that is not considered to affect competition or trade between EEA countries and is therefore not defined as State aid under Article 61(1) of the EEA Agreement.

Purpose of the aid

All purposes, with certain exceptions as outlined below.

Company size

Funding is available to companies of all sizes.

Definition of ‘undertaking’

An undertaking is an economic entity (business). For the purposes of de minimis aid, the term ‘undertaking’ also includes two or more entities/legal persons that have one of the following relationships:

a. One company holds a majority of the shares or voting rights in another;

b. One company has the right to appoint or remove a majority of the board members of another;

c. An enterprise exercises a dominant influence over another pursuant to a shareholders’ agreement, articles of association or similar;

d. An enterprise that is a shareholder in another enterprise holds a majority of the voting rights in that enterprise under a shareholders' agreement.

These relationships will typically exist within a group of companies.

The term ‘single undertaking’ includes cases where one of the relationships described above is established through one or more legal entities.

Eligible costs

De minimis aid may be granted for all types of costs, subject to certain exceptions listed below.

We provide our standard financial guarantees for operating credit under the de minimis aid rules if they do not fall within the rules for startup funding; see section 5.2.5.

Exceptions

Support cannot be provided for exports; see the definition of export aid in section 4.2. However, support may be provided for all export promotion measures that comply with Articles 18 (see section 5.2.2) and 19 (see section 5.2.3) of the GBER.

Grants and interest subsidies may be awarded regardless of financial standing, including where the company is considered to be ‘in difficulty’.

De minimis aid in the form of loans and financial guarantees cannot be granted if the recipient is insolvent. Loans or financial guarantees also cannot be granted to large companies with a credit rating below B- (equivalent to our operating risk rating C, meaning that we cannot grant de minimis aid to large companies with a calculated operating risk rating of C- or D).

Aid intensity

De minimis aid may in principle cover 100% of the eligible costs.

A company may receive up to EUR 300,000 over a three-year period (calculated from date to date).

The amount applies per EEA country and undertaking (see the definition above). For example, the same group may receive EUR 300,000 in Norway and EUR 300,000 in Sweden.

The euro exchange rate on the date of the decision must be used.

Any de minimis aid awarded will limit the company's ability to receive de minimis aid for any new project during the period. The euro exchange rate on the date of the relevant historical decision must be used in the calculation. To avoid using up the company's 'allowance' unnecessarily, aid under the de minimis rules should only be awarded where the project, the relevant costs or the applicant is ineligible for aid under the other State aid rules.

For each new award of de minimis aid, the total amount of de minimis aid awarded to the undertaking by all Norwegian authorities over a rolling three-year period (from date to date) must be determined. All de minimis aid granted during this period must be taken into account, regardless of when the aid was actually paid, unless the award has been cancelled.

De minimis aid cannot be used to ‘top up’ other aid granted under the GBER schemes described in Chapter 5 beyond the applicable maximum aid intensities for the same eligible costs. Read more about this in Chapter 10.

Relationship with differentiated employer's National Insurance contributions

Across much of the regional policy area, employers pay differentiated employer’s National Insurance contributions. This is a regional aid scheme approved by ESA until the end of 2027. In addition to the approved aid, the Ministry of Local Government and Regional Development (KDD) has established a separate contribution zone, Zone 1a, where reduced employer’s National Insurance contributions are granted as de minimis aid. Account managers should be aware of this when considering additional de minimis aid for companies in these areas. Read more about the contribution zones here. The following document provides an overview of the contribution zones.

Relationship to agricultural funding

De minimis aid is used for agricultural funding that is not covered by the agricultural exemption and has not been notified or reported to ESA.

Procedural rules

Before we disburse aid under the de minimis rules, we must obtain an electronic declaration from the recipient detailing all other de minimis aid offered to the company or group over the past three years.

The recipient of de minimis aid must be informed in the grant letter that the aid has been awarded in accordance with Regulation (EU) 2023/2831, and the amount must be stated in the offer letter. The form for declaring previously awarded de minimis aid must be sent no later than with the offer letter. Special condition no. 21.1, ‘EEA – De minimis aid’, must be used in such cases.

All de minimis aid awarded from 1 January 2026 must be registered in the State Aid Register.