How to spend 100 billion euros in clean industry aid? EU releases draft for comments

Recently, the European Commission released the draft of the Clean Industry Agreement on State Assistance Framework (CISAF) and initiated a public consultation process. This draft will provide investment support to EU member states to assist in energy transition.

The EU officially launched the Clean Industry Agreement in February this year, planning to invest 100 billion euros to promote the EU's energy transition. According to the draft national aid framework, EU member states can receive the following support:

Renewable energy and energy storage development: Optimize the bidding process, provide direct support for technologies with lower maturity, and ensure that projects are put into operation within a limited time frame. Member states can directly fund projects through specific bidding mechanisms or within certain limitations without the need for bidding.

Clean technology manufacturing: covering the production of photovoltaic modules and their key raw materials. The European Commission stated that member states can provide higher funding to match the support of third countries for similar projects and prevent investment outflows.

Reduce investment risk: Support private investment in renewable energy, industrial decarbonization, clean technology manufacturing, and energy infrastructure to reduce market uncertainty.

The aid framework is scheduled to be officially adopted in June 2025 and will replace the current Temporary Crisis and Transformation Framework (TCTF), valid until December 31, 2030. This not only provides member states with a more abundant policy planning cycle, but also greatly enhances the certainty of corporate investment.

The proposal aims to ensure that member states can provide support when necessary to advance the goals of the Clean Industry Agreement, while avoiding undue impact on the competitive environment of the single market, "said Teresa Ribera, Executive Vice President of the European Commission for Clean, Fair and Competitive Transition

At present, the European Commission has released a notice on its official website to solicit public opinions on the draft, with a consultation period from March 11 to April 25, 2025.

The European Photovoltaic Association welcomes the Clean Industry Agreement, but at the same time calls on the EU to provide more urgent financing support as soon as possible to promote the vigorous development of the local photovoltaic manufacturing industry in Europe.