At the end of June, the European Commission adopted a new state aid regulation called the Clean Industrial State Aid Framework (CISAF), which will be in effect until 2030, and is aimed at supporting investments facilitating the green transition.
This new framework replaces the Temporary Crisis and Transition Framework (TCTF) aimed at supporting the faster deployment of renewable and low-carbon energy sources. This includes particularly the support for renewable energies (e.g., solar and wind power) and low-emission fuels (e.g., blue and green hydrogen), which play a key role in the transition of hard-to-decarbonize industries.
The new framework allows for a simplified procedure and faster approval process to accelerate renewable energy programs and related investments. The new rules also facilitate the integration of wind and solar energy into the energy system.
Member States may provide support to energy-intensive companies exposed to international competition, provided they are willing to invest in decarbonization. The eligibility for investment support is flexible—any technology that contributes to decarbonization or improved energy efficiency can be supported.
Under CISAF, Member States are expected to launch new state ais programs to encourage green investments. It is important to note, however, that the implementation of these state aid programs at the national level—including in Hungary—may take more time. Currently, no substantial information is available on this, but updates will be provided as soon as such information becomes public.
PwC’s experts can assist in understanding the underlying logic behind the state aid regulation as well as its parts relevant to your company and provide preliminary assessment of planned projects from a CISAF perspective. Moreover, our experts can provide full-scale assistance throughout the subsidy process from assessing the projects through the realization to the monitoring phase.
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