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The EU’s Clean Industrial Deal
The Clean Industrial Deal (CID) was launched by the European Commission in February 2025. The CID aims to accelerate the transition to a cleaner, decarbonised economy, particularly for energy intensive and clean-tech industries, by focusing on key business drivers such as affordable energy, lead markets, financing, circularity, global markets, and skills. The CID aims to create a competitive and resilient industrial ecosystem that contributes to Europe’s climate and sustainability objectives.
The Clean Industrial Deal State Aid Framework
As part of the CID, in June 2025, the European Commission introduced the Clean Industrial Deal State Aid Framework (CISAF). CISAF aims to streamline the state aid approval process for national support schemes that provide for investment in clean energy, industrial decarbonisation, and clean tech manufacturing. CISAF enables the introduction of targeted supports such as grants, tax incentives, and other tools to derisk private capital. Aid granted under CISAF operates alongside other state aid instruments, including the Climate, Energy, and Environmental Aid Guidelines (CEEAG) and the General Block Exemption Regulation (GBER).
The CISAF rules will stay in place until 31 December 2030.
Examples of CISAF in action
Ireland has received one approval under CISAF up to the date of publication. This is the temporary electricity price relief for certain energy intensive users who are at risk of relocating outside the EU or deterring electrification due to high electricity costs. The €300 million aid scheme applies from 4 July 2025 to 31 December 2029 and will be in the form of grants. Grants will be equivalent to a 50% reduction of the yearly average wholesale electricity price, subject to a price floor. There is also a requirement for beneficiaries to invest at least 50% of the aid amount received in decarbonisation measures, reducing the costs of the electricity system.
While Ireland has focused on one scheme to date to support certain energy intensive users, it's interesting to reflect on the type of schemes approved for other countries in the EU.
As of the date of this article, roughly 24 support schemes have been approved across the EU, referencing CISAF as a primary or secondary legal basis. The schemes are approved to provide total aid of approximately €115 billion. The main focus of these schemes can be grouped as follows:
Clean-tech and net zero manufacturing
Nearly half of the approvals relate to investment in manufacturing capacity for clean and net zero technologies. This includes the production of batteries, energy-storage systems, hydrogen technologies for electric vehicles, zero-emission industrial products, critical raw materials, and broader clean-technology components and supply chains. These are typically delivered through direct grants, but some countries are also delivering through tax incentives (e.g. tax credits, tax allowances, etc.) such as Greece, Hungary, and France.
Renewable and low-carbon energy generation
There were a number of supports approved to promote the production of renewable electricity, particularly offshore wind, as well as biomethane production. These are typically delivered through price-support mechanisms, such as two-way contracts for difference.
Energy storage, flexibility, and security of supply
A number of supports for new battery storage capacity and electricity capacity mechanisms covering generation, storage, and demand response. The objective is to ensure supply adequacy, remunerate availability during periods of system stress, and facilitate flexible, non-fossil resources. The most common aid mechanism in this instance is direct grants, sometimes awarded by a competitive bidding process.
Industrial decarbonisation and energy cost relief
Certain schemes provide temporary electricity price relief to energy intensive companies, conditional on reinvestment of a percentage of the savings in decarbonisation measures, such as the scheme approved for Ireland. Other schemes directly support the decarbonisation of manufacturing processes. These schemes are deployed through direct grants, reduction in electricity bills via suppliers, and reimbursement of electricity costs.
Regional and sectoral investment and diversification
Finally, there were a small number of reliefs targeting growth and diversification of investments in clean technologies in specific geographical areas, for example, in the Basque Country, Catalonia, and Lazio.
Ireland’s CISAF opportunity
CISAF offers Ireland an opportunity to develop a more ambitious, coordinated package of supports that converts its renewable energy potential into long-term industrial advantage. However, the window for action is limited, as the CISAF framework is due to expire at the end of 2030.
Priority measures could include grants, tax incentives, guarantees, or contracts for difference to accelerate the electrification of industrial heat and transport; retrofit production facilities with heat pumps, electric boilers, thermal storage, hydrogen, and carbon-capture solutions; and expand grid connections, battery storage, demand response, and other flexibility infrastructure.
Ireland could also use CISAF to attract investment in the domestic manufacture and supply chains of clean technologies, while de-risking first-of-a-kind projects and crowding in private capital. Complementary schemes could promote circular economy projects, low-carbon fuels and renewable hydrogen, port and logistics infrastructure, regional clean-tech clusters and skills development, helping to strengthen energy security, support a just transition, and position Ireland as a competitive European hub for the clean-tech industry.
Ireland should act now to develop a coordinated CISAF strategy, prioritise high-impact schemes, and engage industry to translate this time-limited framework into investable projects and lasting competitive advantage.
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