On Wednesday 25 June, the European Commission presented its new ‘CISAF’ regulatory framework designed to stimulate investment in clean technologies until the end of 2030 in support of the ‘Clean Industrial Deal’ (see EUROPE 13588/1), which complements the ‘CEEAG’ guidelines on aid for environmental and energy protection and the ‘GBER’ regulation facilitating the digital and climate transitions.
“We want to become a decarbonised Economy by 2050” and, with this framework, we intend to “fast-track investment in clean technologies” while ensuring that public money is well used, said the European Commissioner for Competition, Teresa Ribera. The fact that the United States is scaling back its IRA could be an “opportunity” to attract investors who are aware of the need to decarbonise the economy thanks to “a stable, reliable and predictable framework”, she believes.
Submitted for public consultation in March in its provisional form (see EUROPE 13597/14), the new regulatory framework encourages Member States to set up public aid schemes in the following areas:
- the deployment of renewable energies (solar, wind, etc.) and low-carbon fuels, such as ‘green’, ‘blue’ and ‘pink’ hydrogen (produced from nuclear energy), which contribute to the transition of businesses in sectors that are difficult to decarbonise;
- a temporary reduction in electricity prices for energy-intensive industries, through a reduction in electricity bills (up to 50% of consumption) for three years in exchange for investment of the savings made in decarbonisation or energy efficiency. Companies in sectors not covered by the CEEAG guidelines will be able to assert their position on a case-by-case basis;
- decarbonising existing production facilities, by granting aid of up to 60% of costs (maximum amount of €200 million) or by waiving competitive tendering procedures for five years in order to speed up investment in green capacity. When investment is made in gas, it should be as “a last resort”, with projects completed “by 2040 at the latest”, Ms Ribera stressed;
- the development of new production capacity for the 19 technologies (batteries, heat pumps, nuclear fission, etc.) listed in the Net-Zero Industry Act (NZIA), with specific measures to prevent production from being relocated outside the EU;
- reducing the risks associated with investments in clean energy, decarbonisation, clean technologies, energy infrastructure projects and projects supporting the circular economy, in particular by providing financial support (equity, loans, public guarantees) and tax incentives for both producers and buyers.
It should be noted that Member States are encouraged to include a ‘European preference’ in their public aid schemes, according to a Commission source, noting that an ‘anti-relocation’ clause will require companies to repay aid if they relocate outside the EU within five years.
See the ‘CISAF’ frame: https://aeur.eu/f/hkd (Original version in French by Mathieu Bion)