Historic decision by the European Commission – a new state aid framework aligned with the “Net-Zero Industry Act”**

Historic Decision by the European Commission

The CISAF provides guidelines for the following types of aid measures:

• Measures to accelerate the rollout of clean energy

• Measures that support electricity costs for energy-intensive users

• Measures that facilitate industrial decarbonisation

• Measures that ensure sufficient production capacity for clean technologies

• Measures that reduce the risks of private investment

In practical terms, what does this mean?

The European Commission has adopted a new state aid framework to enable Member States to stimulate the development of clean energy, industrial decarbonisation, and clean technologies. The Commission will approve aid schemes introduced by Member States aimed at fostering clean industry, enabling rapid deployment of individual aid.

The framework simplifies state aid rules in five key areas:

1. Deployment of renewable energy sources and low-carbon fuels

2. Temporary reduction of electricity prices for energy-intensive users to support the transition to affordable clean electricity

3. Decarbonisation of existing industrial production facilities

4. Development of clean technology manufacturing capacity within the EU

5. Risk reduction for investments in clean energy, decarbonisation, clean technologies, energy infrastructure projects, and circular economy initiatives

Timeline leading to the decision:

• March 2025: Launch of public consultations on CISAF → [Access public consultations]

• March 2025: Multilateral meeting with experts from Member States → [Access meeting summary]

• April 2025: Completion of public consultations

• June 2025: Adoption of CISAF

• December 2030: Expiry date of CISAF

Source: European Commission
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