- within Law Department Performance, Strategy and Tax topic(s)
CLEAN INDUSTRIAL DEAL STATE AID FRAMEWORK
The Commission published a Staff Working Document on the Clean Industrial Deal State Aid Framework ("CISAF"). The CISAF was adopted on 25 June 2025 and encourages investment in clean energy, industrial decarbonisation and clean technology manufacturing. The Staff Working document explains the main policy changes, analyses how the CISAF contributes to accelerating investments required to achieve Clean Deal objectives and provides the factors considered by the Commission when adopting the CISAF.
CLEANTECH MANUFACTURING CAPACITY
The Commission approved a €700 million Spanish state aid scheme to support strategic investments that add manufacturing capacity for the production of net-zero technologies and the main specific components of these technologies, contributing to the objectives of the Clean Industrial Deal. The aid will take the form of direct grants and will be available until 31 December 2028.
The Commission also approved a €219 million Italian scheme to support manufacturing capacity in Lazio. The scheme was approved under the Clean Industrial Deal State Aid Framework. The aid will take the form of direct grants and will be open to all companies that carry out investments which add manufacturing capacity for the production of net-zero technologies.
SEMICONDUCTOR MANUFACTURING FACILITY
The Commission approved €450 million Czech state aid to US chipmaker Onsemi to support it setting up a novel integrated chip manufacturing plant for Silicon Carbide power devices. The measure will contribute to increasing the EU's technological autonomy in semiconductor technologies, in line with the objectives of the European Chips Act Communication and the Political Guidelines for the European Commission 2024-2029.
EARLY CLOSURE OF LIGNITE-FIRED POWER PLANTS
The Commission approved up to €1.75 billion of German support for Lausitz Energie Kraftwerke AG ("LEAG") to compensate it for the early phase-out of its lignite-fired power plants by 2038. The measure compensates LEAG for fixed additional costs of the early closure of plants as well as for forgone profits to be determined based on an approved formula. The Commission concluded that the contribution to EU environmental and climate goals of the measure outweighed any potential distortion of competition brought about by the support.
STRATEGIC RESERVE FOR SECURITY OF ELECTRICITY SUPPLY
The Commission approved a €750 million Estonian strategic reserve under EU State aid rules. The strategic reserve, which will be in place until 2035, will be open to all projects that can contribute to achieving the security of supply objective, including electricity generation, demand-side response and storage. To be eligible under the strategic reserve, projects will need to comply with the CO2 emission limits set out in the Internal Market in Electricity Regulation.
This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.
