The new framework (CISAF), effective until the end of 2030, builds upon existing state aid regulations and aims to advance the goals of the Clean Industrial Deal.
Member states will now be permitted to provide state aid to businesses to promote the deployment of renewable energy and low-carbon fuels, offer temporary electricity price reductions for energy-intensive users to aid the transition to clean energy, or support the decarbonization of current production facilities.
“The new framework simplifies and expedites support for decarbonization, while also recognizing the state as a key investor in our future. It serves as a tool to bolster climate objectives, enhance European resilience, and maintain industrial competitiveness,” stated Vice President for the Green Transition Teresa Ribera in a press release.
Ribera further emphasized that the framework incorporates measures to prevent member states with greater financial resources from dominating the initiative, including the introduction of spending thresholds that must not be exceeded.
Belgian Members of the European Parliament Wouter Beke (CD&V) and Sara Matthieu (Groen) highlighted the challenges for member states like Belgium that have limited budgetary flexibility. “It is crucial for the European Commission to ensure a level playing field within the internal market,” Beke noted.
Leave a Reply