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EU Adopts State Aid Framework to Boost Clean Industry by 2030

The European Commission has introduced the Clean Industrial Deal Framework (CISAF)—a comprehensive, long-term state aid framework designed to drive clean energy deployment, industrial decarbonisation, and clean technology investment across the EU. Replacing the Temporary Crisis and Transition Framework (TCTF), CISAF will remain in effect until 31 December 2030, providing long-term clarity and strategic certainty for businesses and Member States.

Key Highlights of CISAF:

1. Long-Term Certainty:

CISAF replaces temporary crisis measures with a durable framework, aligning financial tools with the EU’s 2030 climate and industrial objectives.

2. Simplified and Accelerated Approvals:

The framework streamlines state aid approvals for

· Renewable energy and low-carbon fuel projects, including green and blue hydrogen

· Grid flexibility solutions and capacity mechanisms for intermittent renewables like wind and solar

· Clean tech manufacturing, including critical raw materials processing under the Net-Zero Industry Act

3.Renewable energy and low-carbon fuel projects, including green and blue hydrogen · Grid flexibility solutions and capacity mechanisms for intermittent renewables like wind and solar · Clean tech manufacturing, including critical raw materials processing under the Net-Zero Industry Act.

4. Technology-Neutral Decarbonisation Aid: Funding is available for a wide range of clean technologies—electrification, hydrogen, biomass, and carbon capture—through predefined grants (up to €200 million), gap funding, or competitive tenders.

5. Regional Equity and Fiscal Incentives: CISAF supports balanced growth by offering higher aid intensity in less developed regions, and enabling tax incentives, such as accelerated depreciation for clean tech investments.

6. Mobilising Private Capital: To scale up investment, the framework allows public tools—like equity, loans, and guarantees—to de-risk private investments in infrastructure, clean energy, and circular economy projects via funds or special purpose vehicles.