The European Union set up a new framework for State aid towards clean tech energy and in support of industrial transition to carbon-neutral energy consumption.
The new framework, dubbed the Clean Industrial Deal (CISAF), will be in effect until 2030 and replaces the Temporary Crisis and Transition Framework, which has been operating since 2022. This system aims to create a flexible way for States and industries to transition to clean energy without losing productivity. It regularises exemptions to State aid regulation.
As the Commission Vice-President for Climate Transition, Teresa Ribera, said: “The new framework simplifies and speeds up support for decarbonisation, but it goes further: it recognises the state as a strategic investor in our future.”
States will be able to offer electricity price relief to producers in energy-intensive sectors that are particularly exposed to trade, helping them avoid unfair disadvantages when purchasing electricity for production. In return for the relief, companies will be required to invest in decarbonisation.
Overall, the CISAF will support efforts to increase the adoption of renewable energy through an easier bureaucratic procedure, which should facilitate the transition to and implementation of new low-energy schemes. Up to €200 million can be given as aid to support energy efficiency and decarbonisation projects across the bloc. The framework also introduces new rules for the flexible adoption of renewable electricity sources, ensuring that consumers, including both companies and citizens, receive energy without disruption.
