How to spend 100 billion euros in clean industry aid? The EU released a draft for comments

Recently, the European Commission published the draft of the Clean Industry Agreement State Aid Framework (CISAF) and launched a public consultation process. The draft will provide investment support to EU member states and help energy transformation.

The EU officially launched the Clean Industry Agreement in February this year, planning to invest 100 billion euros to promote the EU's energy transformation. 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 less mature technologies, and projects must be put into operation within a limited time. Member States can directly fund projects through specific bidding mechanisms or within certain restrictions without bidding.

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

Reduce investment risks: 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 formally adopted in June 2025 and will replace the current Temporary Crisis and Transformation Framework (TCTF), which will be valid until December 31, 2030. This not only provides member countries with a more ample policy planning cycle, but also greatly enhances the certainty of corporate investment.

Teresa Ribera, the European Commission’s Executive Vice-President for Clean, Fair and Competitive Transition, said: “This proposal aims to ensure that member states can provide support where necessary to advance the objectives of the Clean Industry Agreement, while avoiding undue impacts on the competitive environment of the single market.”

At present, the European Commission has published an announcement on its official website to solicit public opinions on the draft. The consultation period is from March 11 to April 25, 2025.

The European Photovoltaic Association welcomed the Clean Industry Agreement, but at the same time called on the EU to provide more urgent financing support as soon as possible to promote the vigorous development of Europe's domestic photovoltaic manufacturing industry.