G/SCM/Q2/GBR/2  
 
31 May 2022  
(22-4102) Page: 1/2 
Committee on Subsidies and Countervailing Measures  Original: English  
 
 
SUBSIDIES  
REPLIES TO THE QUESTIONS1 POSED BY AUSTRALIA REGARDING  THE 
2021 NEW AND FULL NOTIFICATION OF THE UNITED KIGDOM2 
The following communication, dated and received on 25 May 2022, is being circulated at the request 
of the delegation of United Kingdom . 
 
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The United Kingdom thanks Australia for its questions and provides the following responses:  
1.1.1 Regional Growth Fund  
Question 1  
Could the United Kingdom please clarify whether the eRGF (exceptional RGF) has provided 
funding for projects since 2016 and how are 'exceptional' circumstances for receipt of 
funding?  
Reply : 
• The Exceptional Regional Growth Fund (eRGF) has provided funding for projects since 2016.  
• eRGF support is a discretionary grant award and Ministers reserve the option to use eRGF in 
response to opportunities arising from internationally mobile investment or unanticipated 
economic shocks at a local, regional, or national level that could have a significant impact 
on a particular area.  
• In addition to the standard requirements of (a) significant private sector leverage, 
(b) sustainable job creation/safeguarding, (c) value for money and (e) awards being legally 
comp liant, eRGF support will only be awarded in exceptional economic circumstances, 
where:  
i) the eRGF applications are associated with a significant opportunity related to 
internationally mobile investment; i.e., Generating a new capability for the UK or 
securi ng the retention of a key capability that would otherwise be lost to the UK;  
ii) the eRGF applications are responding to/avoiding major economic shocks (i.e., major 
job losses concentrated in a single area that has a high reliance on those jobs);  
iii) the potential  funding offers clear wider benefits or unique strategic importance to the 
UK economy e.g., research and development in new technology or up -skilling the 
workforce.  
 
1 G/SCM/ Q2/GBR/1 . 
2 G/SCM/N/372/GBR . G/SCM/Q2/GBR/2  
 
- 2 - 
 
  2.1.1 Advanced Biofuel Demonstration Competition  
Question 2  
Noting the aim of technical and  commercial viability of biofuel projects, are forward 
contracts required as part of eligibility of grant funding?  
Reply : 
• Forward contracts were not required as part of eligibility for grant funding.  
• Successful applicants to the Advanced Biofuel Demonstra tion Competition were expected to 
demonstrate:  
i) Key innovations inherent in the proposed technology pathway;  
ii) An understanding of the market context (size, readiness, target market, cost levels) 
with a clear understanding of where their product would fit;  
iii) A clear strategy for commercialising the technology and products;  
iv) An expectation to produce at least 1 million litres of biofuel per year by the end of 2018;  
v) The necessary expertise and experience to deliver on the project 's objectives;  
vi) The ability to match fund the project 's costs in line with EU State Aid rules;  
vii) A clear strategy for communicating successful delivery of the project and the 
technological advances to the wider industry and the public.  
 
 
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