On 25 June 2025, the European Commission adopted a new state aid framework in support of the objectives of the Clean Industrial Deal: the Clean Industrial State Aid Framework (CISAF), which will remain in force until 31 December 2030. The aim of the framework is to promote investments that support the green transition, with a special focus on renewable and low-carbon energy sources. CISAF replaces the Temporary Crisis and Transition Framework (TCTF), which expired on the same day. It is important to note, however, that state aid schemes previously approved under the TCTF – for example, Hungary’s energy storage deployment and green transition initiatives – will remain valid until their approved deadlines (no later than 31 December 2025).
One of the key innovations of the new framework is the accelerated and simplified approval procedure, which aims to speed up the implementation of renewable energy programmes and related investments. The regulation facilitates the faster integration of solar and wind energy into energy systems and supports the rollout of low-carbon fuels such as blue and green hydrogen. Member States may provide aid to energy-intensive companies exposed to international competition, provided that they are willing to invest in decarbonisation. The framework is technology-neutral, meaning any investment contributing to greenhouse gas emission reduction or improved energy efficiency may be eligible for support.
CISAF defines a total of five aid categories. Aid for the deployment of clean energy covers renewable energy generation, storage, low-carbon fuels, flexibility solutions, as well as temporary price support for energy-intensive industries. Aid for industrial decarbonisation aims to reduce emissions from industrial activities or improve their energy efficiency, without increasing production capacity. The level of support can be set administratively, based on the funding gap, or through a competitive bidding process.
Aid for scaling up manufacturing capacity of clean technologies applies to products covered by the Net Zero Industry Act (NZIA) – including nuclear technologies – as well as their key components and the critical raw materials needed for production. In more developed regions such as Budapest, the support may cover up to 15% of eligible costs (maximum EUR 150 million), while in less developed regions – which comprise most of Hungary – the intensity can reach 35% (up to EUR 350 million). For small and medium-sized enterprises (SMEs), the aid intensity can be increased by an additional 10–20 percentage points. The framework also allows for accelerated depreciation of investments.
In addition, individual projects positively evaluated by the EU under the Innovation Fund are also eligible for support. The fifth category focuses on de-risking green-oriented private investments through various financial instruments – such as public equity, loans, and guarantees – and may involve financial intermediaries.
CISAF is expected to serve as the basis for new national-level support schemes across most Member States, helping to more effectively encourage green investments.
On 25 June 2025, the European Commission adopted a new state aid framework in support of the objectives of the Clean Industrial Deal: the Clean Industrial State Aid Framework (CISAF), which will remain in force until 31 December 2030.
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This article provides general information and does not constitute advice.
