COM ADOPTS NEW STATE AID FRAMEWORK TO SUPPORT CLEAN INDUSTRY AND FUELS
On 27 June, the European Commission adopted the Clean Industrial Solutions Act Framework (CISAF), a new state aid instrument aimed at accelerating the decarbonisation of EU industry. The framework replaces the Temporary Crisis and Transition Framework (TCTF) and will apply until the end of 2030.
CISAF sets out the conditions under which Member States may support investments in renewable energy, low-carbon fuels and industrial decarbonisation technologies. The objective is to facilitate the roll-out of clean technologies, enhance the competitiveness of EU industry, and prevent the relocation of production to countries with lower energy costs.
The framework introduces the option for Member States to subsidise part of the electricity operating costs of energy-intensive industries. Companies exposed to international competition and heavily reliant on electricity will be eligible for discounts covering up to 25% of their electricity bills, provided prices do not fall below €50/MWh. In return, beneficiaries will be required to commit to decarbonisation investments. It also simplifies procedures for supporting the production and infrastructure of clean fuels, including technologies covered by the Net-Zero Industry Act.
The Commission underlined that these measures are necessary to ensure a fair and stable transition while preserving the integrity of the Single Market. However, some smaller Member States have raised concerns over the potential fragmentation of the EU market, as countries with greater fiscal capacity may be better positioned to support their domestic industries.
Source: European Commission, EURACTIV