EU's New State Aid Framework Enables Support For Clean Industry

The European Commission adopted a Clean Industrial Deal State Aid Framework (CISAF) on 25 June 2025 to support implementation of the goals set out in the Clean Industrial Deal (see our Legal Alert on the Deal). The framework outlines state aid rules to support the decarbonisation of industry and the deployment of clean energy technologies. It aims to enhance predictability and certainty for businesses, encouraging investment whilst avoiding distortions to competition and trade. The framework recognises considerable investment needs to achieve Clean Industrial Deal ambitions, requiring mobilisation of funds mainly from private sources but incentivised or complemented by public funds where necessary. Support from states can be offered through various instruments, such as direct grants, tax benefits, subsidised interest rates on new loans, or loan guarantees. The rules will apply until 31 December 2030.