The European Commission has introduced a new regulation called the Agreement on State Assistance in the Field of Clean Production (CISAF) to help member states accelerate the transition to clean energy, industrial decarbonization and clean technologies within the framework of the Agreement on Clean Production.
Accordingly, CISAF defines how member States can provide public support for investments in environmentally friendly industries in accordance with the EU rules on state aid. This allows for the rapid implementation of national assistance programmes introduced by Member States. The framework program will be valid until December 31, 2030, and will also ensure long-term stability for governments and businesses.
There are five key areas of CISAF activity. One of them offers simplified procedures for accelerated support of projects such as wind and solar energy, as well as green/blue hydrogen production, in order to help industries that are experiencing difficulties in reducing carbon emissions achieve the decarbonization goals under the Clean Industry Agreement.
Moreover, Member States will now offer energy cost support for companies operating in industries subject to global competition and heavily dependent on electricity, thereby reducing energy costs for energy-intensive consumers who face higher costs than competitors in regions with less ambitious climate policies. In return, recipient companies will have to invest in decarbonization measures.
In addition, CISAF will offer flexible financing options for a wide range of decarbonization or energy efficiency technologies, including electrification, hydrogen, biomass, and carbon capture, recovery, and storage (CCU).
The framework program will also provide government support for investments in the production of environmentally friendly technologies subject to the Law on Zero-Pollution Industries. Assistance will be provided on a case-by-case basis, when necessary, to avoid the withdrawal of such investments outside the EU. This will support investments in the production and processing of critical raw materials needed for clean technologies. In addition, the framework program will stimulate demand for environmentally friendly technologies by offering tax benefits, such as accelerated tax deductions, to companies investing in environmentally friendly technologies.
Ultimately, CISAF will enable member states to reduce the financial risks associated with private investments by offering equity
