The European Commission has today adopted a new State aid framework supporting the Clean Industrial Deal (CISAF), to enable Member States to push forward the development of clean energy, industrial decarbonisation and clean technology.
The CISAF establishes conditions for Member States to provide support for investments aligned with EU State aid rules. It allows the Commission to approve aid schemes to enhance clean industry and expedite individual aid rollout.
Effective until December 31, 2030, the CISAF offers long-term predictability for Member States and businesses, replacing the Temporary Crisis and Transition Framework (TCTF) established in 2022.
The framework simplifies State aid rules across five key areas:
- promoting renewable energy and low-carbon fuels;
- temporary electricity price relief for energy-intensive users to facilitate the transition to affordable clean electricity;
- decarbonising existing production facilities;
- developing clean tech manufacturing capacity in the EU;
- de-risking investments in clean energy, decarbonisation, clean tech, energy infrastructure projects, and supporting the circular economy.
Specifically, the framework provides:
- A fast-track for clean energy rollout. The framework supports both renewable energy and low-carbon fuels, crucial for achieving the Clean Industrial Deals decarbonisation goals. Simplified procedures enable quick implementation of renewable energy initiatives, while low-carbon fuels, like blue and green hydrogen, aid sectors that are difficult to decarbonise.
- New rules on flexibility measures and capacity mechanisms offer Member States tools to incorporate intermittent renewable sources (e.g., wind and solar) into the energy mix, ensuring reliable supply for consumers. The CISAF outlines target model capacity mechanisms for Member States to compensate electricity providers for maintaining standby capacity, qualifying for fast-track approval. Other designs will be evaluated under the Climate, Environmental Protection and Energy Aid Guidelines (CEEAG).
- Support for electricity costs for energy-intensive users. Member States can provide price support to sectors heavily reliant on electricity, allowing them to remain competitive against regions with less stringent climate policies. Companies receiving this support must invest in decarbonisation.
- Flexible investment support for technologies that enhance decarbonisation or energy efficiency.
The framework accommodates a variety of decarbonisation technologies including electrification, hydrogen, biomass, and carbon capture.
Support can be allocated through:
- predefined aid amounts (for up to €200 million);
- the funding gap; or
- a competitive bidding process.
- Support for clean tech manufacturing. Member States can back investments in new manufacturing capacity for:
- projects related to the Net-Zero Industry Act as schemes;
- individual projects in net-zero technologies to prevent investment diversion from Europe.
Additionally, support for the production and processing of essential raw materials for clean technologies is allowed.
To ensure cohesion among regions, Member States can provide more support to projects in less advantaged areas, as defined in regional aid maps.
Moreover, the framework encourages demand for clean tech products through tax incentives, enabling quicker deductions for clean technology investments from taxable income.
- Measures to de-risk private investments in projects supporting the Clean Industrial Deal
Public and private investments must collaborate to achieve a decarbonised economy. Member States can implement measures to de-risk private investments in projects under this framework, including energy infrastructure and circular economy initiatives. Support may come in the form of equity, loans, or guarantees to a dedicated fund or special purpose vehicle managing eligible projects.
Background
EU State aid rules prevent government support from giving a company a competitive edge.
Other State aid regulations pertinent to the Clean Industrial Deal (the CEEAG) continue to apply and can be utilized by Member States for complex support measures. They will also maintain State aid initiatives under the General Block Exemption Regulation without needing to notify the Commission.
The Commission has consulted Member States and stakeholders on the draft State aid framework, considering all contributions for the final version.
Details of this consultation and received contributions are available online.
For More Information
Clean Industrial Deal State Aid Framework (CISAF)
Temporary Crisis and Transition Framework