Shaping transformation: EU launches Clean Industrial Deal and CISAF

Clean Industrial Deal Communication

With its communication on the Clean Industrial Deal in February, the EU Commission provided important impetus for a more competitive Europe. Targeted investments in climate-friendly technologies, better coordination of European and national funding and stable and reliably lower energy prices are key prerequisites for encouraging companies to make future-oriented investments in Europe. In order for the initiated measures to become effective, rapid progress now needs to be made in the development of an integrated European energy market, a permanent reduction in electricity tax for industry and a practical design of future sustainability requirements. Quota regulations for products ‘Made in Europe’ should be limited to strategically relevant areas and contribute to strengthening resilient European supply chains - without promoting new protectionism.

New Clean Industrial Deal State Aid Framework

In March, the European Commission published a draft framework for state aid in the clean industrial sector (CISAF). The CISAF contains many positive approaches for more flexible and accelerated funding opportunities for the transformation of industry and the energy system, which we expressly support. We would like to emphasise, among other things, the possibility of cumulating CISAF aid with other national and European subsidies, the alternative calculation options for member states to determine the permissible amount of aid, the admissibility of national aid framework regulations instead of individual approvals or the new regulations on accelerated depreciation and de-risking of private investments. However, the current draft of the CISAF also has significant weaknesses in several key areas - particularly with regard to the required technological neutrality, regulations on industrial flexibility, the lack of options for operating cost support, practical implementation issues and the excessively narrow scope of application - which should be urgently rectified before final adoption in order to avoid hindering investment in a competitive and climate-friendly industry.