EU state aid framework enabling support to clean industry
Published 16 October 2025
Category: Impact and ESG
On 25 June 2025, the European Commission adopted a new State aid framework to support the clean industry transition, the Clean Industrial Deal State Aid Framework (“CISAF”). The CISAF aims to facilitate Member States’ support for clean technology manufacturing and deployment while ensuring a level playing field across the EU. Under CISAF, the European Commission will authorise aid schemes introduced by Member States to boost clean industry, enabling the swift roll-out of individual aid.
The CISAF covers a wide range of clean technologies including renewable energy, energy storage, heat pumps, electrolysers, carbon capture and storage, and critical raw materials processing. It allows Member States to provide aid for both manufacturing and deployment of these technologies.
Key features of the framework
The CISAF introduces several key innovations to accelerate clean technology deployment. CISAF simplifies State aid rules in five main areas:
- (i) roll-out of renewable energy and low-carbon fuels;
- (ii) temporary electricity price relief for energy-intensive users to ensure the transition to low-cost clean electricity;
- (iii) decarbonisation of existing production facilities;
- (iv) development of clean tech manufacturing capacity in the EU; and
- (v) de-risking of investments in clean energy, decarbonisation, clean tech, energy infrastructure projects and projects supporting the circular economy.
Notably, it establishes a fast-track approval procedure for aid measures. Support can be granted based on:
- (i) predefined aid amounts (for support up to EUR 200 million);
- (ii) the funding gap; or
- (iii) a competitive bidding process.
The CISAF will remain in force until 31 December 2030, providing long-term certainty for businesses, introducing conditions under which Member States may grant State aid to private and public investments linked to renewable energy, industrial decarbonisation and clean technology manufacturing. The CISAF replaces the Temporary Crisis and Transition Framework (TCTF), which has been in place since 2022.
Next steps: Member States can now design and implement support schemes under this framework. Companies planning clean technology investments should consider how this framework might benefit their projects and monitor how Member States implement national schemes.
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