New legal tools for a green transition
Published on 6th August 2025
European climate policy is entering a new phase, where the focus is not only on setting targets but also on implementing them.
The European Commission (EC) Communication of 25 June 2025 presented the new Clean Industrial Deal State Aid Framework (CISAF). It is a package of measures designed to accelerate the green transition, particularly in key economic sectors.
Legal basis
The legal basis for State aid is Articles 107 – 109 of the Treaty on the Functioning of the European Union (TFEU). As a general rule, State aid is prohibited, but can be declared compatible with the internal market if it fulfils certain conditions. The state aid framework presented in the CISAF is becoming an important tool for implementing the EU's decarbonisation strategy. Member States gain more freedom and predictability in planning public support for decarbonisation projects.
Scope and objectives of the CISAF
The CISAF Communication sets out how Member States can support the CID (Clean Industrial Deal) targets. It is valid from 25 June 2025 to 31 December 2030 and includes an extended five-year planning horizon, simplified conformity assessment procedures, as well as ready-made support mechanisms for investments in renewables, energy system flexibility and the development of zero-carbon production technologies. The EC has made it clear that support will be given to investments in modern energy solutions, the development of hydrogen-based technologies, low-carbon fuels and renewable fuels of non-biological origin (RFNBO).
Key support mechanisms
1) De minimis aid
Small and medium-sized enterprises (SMEs) can be granted up to €300,000 in support over 3 years without full EC notification, which supports energy efficiency, RES and production line modernisation projects.
2) Temporary energy price reductions
High energy costs are a major challenge for energy-intensive industries. CISAF allows for temporary energy price support mechanisms - subject to decarbonisation investments (electromobility, RES, energy storage).
3) Support for renewable energy sources
In the guidelines, the EC highlights the key role that renewable fuels, such as renewable hydrogen, play in the decarbonisation of the EU energy system. In the coming years, low-carbon hydrogen is expected to contribute to rapid emission reductions and support the energy transition in sectors where decarbonisation is challenging.
4) Reducing greenhouse gas emissions
According to the Guidelines, public aid is considered compatible with the internal market for investments that significantly contribute to the reduction of greenhouse gas emissions from industrial activities or investments that lead to a significant reduction of energy consumption in industrial activities. The EC emphasises the need to implement alternative fuels, CCS/CCU, recycling and the use of alternative raw materials in industry.
5) Fiscal support
The EC recommends that EU Member States implement simple, targeted and effective tax incentives for investments in clean industry and zero-carbon technologies. The optimal forms of support are to be accelerated depreciation, loss carry-forward and flexible tax credits.
The new CISAF framework is a key tool to support industrial decarbonisation in the EU through simplified and predictable state aid mechanisms. For Poland, it is an opportunity to accelerate industrial transformation, provided that the new mechanisms are implemented quickly and efficiently.
