EU Adopts State Aid Framework to Boost Clean Industrial Decarbonization

The European Commission has adopted the Clean Industrial State Aid Framework (CISAF) to accelerate industrial decarbonization and support clean energy technologies across the EU until 2030. CISAF replaces the Temporary Crisis and Transition Framework and aims to boost investment in renewable energy, low-carbon fuels, and clean-tech manufacturing, with financial support capped at €200 million per project. The framework enables fast-track approvals, reduces electricity costs for energy-intensive industries, and supports a broad range of decarbonization technologies including hydrogen, carbon capture, and electrification. It also prioritizes CAPEX support, encourages the use of power purchase agreements to guarantee renewable electricity, and facilitates repowering to increase wind energy output efficiently. CISAF is designed to maintain long-term investment certainty, improve EU industrial competitiveness, and drive climate ambition by recognizing the state as a strategic investor in clean technology. The framework further supports energy security by allowing capacity mechanisms and flexibility tools to integrate renewables into the energy grid.