EU Commission proposes new state aid rules to support green transition

The new framework (CISAF), which is valid until the end of 2030, builds on the existing state aid rules and aims to support the objectives of the Clean Industrial Deal.

Member states will now be able to grant state aid to companies to encourage the rollout of renewable energy and low-carbon fuels, to provide temporary reductions in electricity prices for energy-intensive users to support the transition to clean energy, or to stimulate the decarbonization of existing production facilities.

“The new framework simplifies and accelerates support for decarbonization, but goes further: it recognizes the state as a strategic investor in our future. It is a tool to support climate ambitions, strengthen European resilience, and ensure that our industry remains competitive,” said Vice President for the Green Transition Teresa Ribera in a press release.

Ribera also assured that within the framework, levers have been built in “to ensure that member states that can dig deeper into their pockets do not dominate the race,” including by incorporating thresholds that must not be exceeded.

Belgian Members of the European Parliament Wouter Beke (CD&V) and Sara Matthieu (Groen) pointed out in a response the risk for a member state like Belgium with limited budgetary space. “It is therefore essential that the European Commission ensures the maintenance of a level playing field within the internal market,” said Beke.