EU Approves New State Aid Framework for Clean Industry

The European Commission has approved a new state aid framework supporting the Clean Industry Agreement (CISAF), aimed at accelerating the green transition and supporting strategic investments in clean energy and technology.

The framework, replacing the Temporary Crisis and Transition Framework (2022), will be valid until December 31, 2030, providing long-term predictability for member states and businesses. CISAF defines simplified procedures for approving national aid schemes concerning, among other things, renewable energy sources, decarbonization of industrial plants, clean technology production, and support for energy-intensive industries.

The new framework allows support in five pillars: development of renewable sources, strengthening power mechanisms, reducing energy costs, investments in clean technologies, and incentives for private investments.

Member states will be able to provide aid through various mechanisms, with emphasis on supporting less favored regions and preventing investment relocation outside Europe. The Commission aims to ensure the competitiveness of European industry and strengthen energy security.