EU: European Commission adopts Clean Industry State Aid Framework

Applicable from June 25, 2025, until December 31, 2030

 

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June 30, 2025

The European Commission (EC) on June 25, 2025, adopted the Clean Industrial State Aid Framework (CISAF), which provides conditions for certain types of aid measures to be considered compatible with EU State aid rules with the aim of promoting investments in renewable energy, industrial decarbonization, and clean technology manufacturing.

The CISAF generally allows aid to be granted in any form, including direct grants and tax advantages (e.g., tax credits and accelerated depreciation), and sets out specific conditions for State aid schemes in the form of accelerated depreciation granted to incentivize acquisition or lease of clean technology equipment.

The framework replaces the Temporary Crisis and Transition Framework (TCTF) adopted in March 2023, with the CISAF applying as of the adoption date of June 25, 2025, until December 31, 2030.

Read a June 2025 report prepared by the KPMG’s EU Tax Centre

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