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The European Commission has developed a new state aid framework under the Clean Industrial Solutions Act for Europe (CISAF) to support clean technology manufacturing across the European Union.

Image: Smallman12q, Wikimedia Commons, CC BY 2.0

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The European Commission has adopted a new state aid framework under the Clean Industrial Deal for Europe (CISAF), a plan intended to mobilize €100 billion to support clean technology manufacturing within the European Union.

The Commission said CISAF will remain in place through the end of 2030. It aims to accelerate the deployment of new renewable energy capacity and low-carbon fuels while maintaining low electricity prices for energy-intensive industries.

The scheme will support all manufacturing projects related to clean energy technologies listed under the Net-Zero Industry Act (NZIA), as well as individual production projects in net-zero technologies when necessary to keep investments from shifting outside the European Union.

The Commission capped financial support at €200 million per project. It said governments may use either funding gap assessments or competitive tenders to ensure fair competition.

The framework also allows EU member states to streamline permitting procedures for clean energy technologies and adopt capacity mechanisms and flexibility measures to improve grid stability. It also includes provisions to reduce electricity costs for energy-intensive users.

“If Europe wants to lead in clean tech, we must act with courage and clarity,” said Teresa Ribera, executive vice-president for clean, just and competitive transition. “The new framework simplifies and speeds up support for decarbonization, but it goes further: it recognizes the state as a strategic investor in our future.”

The NZIA is expected to help Europe produce at least 40% of its annual deployment needs for strategic technologies, including PV modules, batteries, and heat pumps. It mandates faster permitting for all renewable and energy storage technologies, setting maximum authorization timelines based on project scope and output. The legislation also establishes Net-Zero Acceleration Valleys, where member states will handle parts of the environmental assessment evidence collection to streamline approvals.