The European Commission simplifies the rules of state aid for industry
On June 25, the European Commission adopted a new system of state aid in support of the Clean Industry Agreement (CISAF).
The new system allows Member States to promote the development of clean energy, industrial decarbonization and clean technologies.
CISAF defines the conditions under which countries can support certain investments and objectives in accordance with EU rules on state aid. The system will be in effect until the end of 2030, providing Member States and businesses with long-term predictability. It replaces the Temporary Crisis and Transition System (TCTF), which has been in effect since 2022.
This structure simplifies the rules of state aid in five main areas:
introduction of renewable energy and low-carbon fuels,temporary reduction of electricity prices for energy-intensive users to ensure the transition to low-cost clean electricity,decarbonization of existing production facilities,development of clean technology production facilities in the EU,reducing the risks of investments in clean energy, decarbonization, clean technologies, energy infrastructure projects and those that support a circular economy.In particular, Member States can provide support regarding electricity prices to companies operating in sectors that are particularly open to international trade and are energy-intensive. This will reduce costs for consumers who face higher costs than competitors in regions with less ambitious climate policies. In exchange for price support, companies will be required to invest in decarbonization.
The new system was commented on by the German Steel Industry Association (WVStahl). As Kerstin Maria Rippel, managing director of WVStahl, noted, she arrived on time, because steel companies face difficulties in energy costs. For many, high electricity prices have become a risk to their location and competitiveness.
She stressed that the important German aid measures announced in the coalition agreement are just announcements that urgently need to be implemented. In particular, tariffs for network usage should be reduced immediately.
WVStahl noted that CISAF makes it clear that the EC also recognizes the need for such solutions, and welcomed the statement by German Minister of Economy and Energy Katrina Reiche that a specific concept for industrial electricity prices will be presented in the near future.