Why CISAF Matters
CISAF is not just about subsidies—it’s about shaping Europe’s industrial future. By supporting renewable energy deployment, clean technology manufacturing, and industrial decarbonisation, the framework aims to keep jobs in Europe, strengthen competitiveness, and deliver on climate goals.
Since 25 June 2025, the Clean Industrial State Aid Framework (CISAF) has been in force, replacing the Temporary Crisis and Transition Framework (TCTF). Valid until 31 December 2030, CISAF is a cornerstone of the EU’s Clean Industrial Deal, designed to accelerate the green transition and strengthen Europe’s industrial base.
The rules set out clear priorities for Europe’s industrial future:
- Accelerate renewable energy and low-carbon fuel deployment. For example, CISAF supports large-scale investments in offshore wind farms and solar manufacturing plants. A recent €11 billion French scheme under CISAF aims to boost offshore wind capacity, ensuring Europe can compete globally in clean energy technologies.
- Support non-fossil flexibility measures. This includes funding for battery storage facilities and grid flexibility projects. For instance, manufacturers producing advanced battery systems for electric vehicles can benefit from aid to expand production and integrate renewable energy into their operations.
- Provide temporary electricity price relief for energy-intensive industries. Sectors like steel, aluminium, and chemicals—where electricity costs represent a major share of production—will receive relief to remain competitive. Without this, companies risk relocating to regions with lower energy prices and weaker environmental standards.
- Drive industrial decarbonisation. CISAF encourages projects that cut emissions in heavy industry. For example, steel plants investing in hydrogen-based production processes or cement factories adopting carbon capture technologies can access targeted support.
- Ensure manufacturing capacity for clean technologies. Europe needs to produce its own solar panels, wind turbines, heat pumps, and batteries. CISAF provides incentives for companies to build or expand factories for these technologies, reducing dependence on imports and creating quality jobs.
- Reduce risks for private investments. By offering guarantees and co-financing, CISAF helps de-risk large industrial projects, such as gigafactories for electric vehicle batteries or hydrogen electrolyser plants, making Europe more attractive for investors.
Industrial workers need a framework that protects their interests
These objectives align with the Clean Industrial Deal, but their success depends on strong governance and social safeguards. These can be summarised in 4 key demands.
- Mandatory Social Conditionalities
CISAF encourages Member States to include social conditions, but this is not binding. IndustriAll Europe calls for:
• Respect for workers’ and trade union rights
• Fair wages and decent working conditions
• Training, upskilling, and quality job creation
• Ban on relocation and stronger local content requirements
Public funds must serve the public interest—not just corporate profits.
- Cohesion and Anti-Relocation Measures
While CISAF includes provisions to prevent relocation and support regions with economic challenges, these measures are too weak. Without robust anti-relocation rules and stronger regional aid, Europe risks widening territorial inequalities.
- Energy Support and Market Reform
We welcome temporary electricity price relief for energy-intensive sectors, but this must be coordinated at EU level. IndustriAll Europe advocates for:
• An EU-wide industrial electricity price mechanism
• Long-term predictability and parity across Member States
• Structural reform of the electricity market to secure affordable energy for industry and households
- Investment and Innovation
CISAF promotes industrial decarbonisation and clean technology manufacturing, with claw-back and profit-sharing mechanisms—a positive step toward socialising benefits. However, the Innovation Fund remains oversubscribed, highlighting the urgent need for additional EU-level resources to close the climate investment gap.
Beyond State Aid: A Call for Structural Reform
While the Clean Industrial State Aid Framework (CISAF) is an important step toward supporting Europe’s industrial transformation, it cannot stand alone. To deliver a truly fair and sustainable transition, the EU must go further. First, fiscal rules need reform. We call for the adoption of a golden rule for investment, ensuring that strategic spending on industrial decarbonisation and clean technologies is treated as a priority rather than constrained by austerity measures. Second, the EU budget must be strengthened to finance the transformation of industry across Europe. Without additional resources, Member States with limited fiscal capacity risk falling behind, deepening regional inequalities and undermining cohesion. Finally, there must be coherence between State aid, competition policy, and energy market design. These policies cannot operate in isolation. A joined-up approach is essential to guarantee affordable energy for industry, prevent subsidy races, and ensure that public support translates into quality jobs and industrial resilience.
Our Bottom Line
“CISAF offers flexibility and ambition, but without mandatory social conditionalities, robust anti-relocation measures, and structural reforms, Europe risks missing the opportunity for a Just Transition. Public money must deliver quality jobs, industrial resilience, and social fairness.” said Judith Kirton-Darling, industriAll Europe's general secretary.