The European Commission has adopted the State Aid Framework under the Clean Industry Initiative (CISAF). Although this is an effort by the European Union to direct public support toward Europe’s green and industrial transition, there are shortcomings that have raised public concern, the European Environmental Bureau (EEB) has warned.
Several important elements have been highlighted as positive. First, support for renewable hydrogen is prioritized, particularly for technologies that produce hydrogen using wind and solar power, as opposed to those relying on fossil fuels. Second, there is a strong application of the “Do No Significant Harm” (DNSH) principle, which mandates that investments in renewable energy and low-carbon fuels must not harm other aspects of the environment.
Additionally, aid recipients are now required to allocate at least 50 percent of the funds to projects that contribute to the green transition and to reducing energy system costs—for example, by replacing fossil fuels with renewable sources.
Priority is also given to projects that improve material efficiency, thus encouraging more rational resource use and waste reduction.
Moreover, higher environmental standards have been set for producers of clean technologies, who must now apply the best available low-emission production methods.
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- Switzerland Tests Solar System Between Railway Tracks
Negative Side of the New Rules
Despite positive developments, the new framework has serious shortcomings that could jeopardize the goals of the green transition, the EEB warns.
First and foremost, the true cost of pollution is not recognized—public funds may end up in the hands of industries that negatively impact human health and the environment, without being held accountable.
Second, while subsidies are significant, they cannot compensate for weak regulation—public aid must not replace strong legislation.
Furthermore, there is no guarantee that the funds will serve the public interest. The funds should align with the EU’s environmental protection goals, but too much room is left for different interpretations and potential misuse.
It is particularly concerning that, although some limitations exist, investments in fossil gas are still permitted. Ultimately, the framework only encourages member states to include environmental and social conditions but does not impose binding requirements.
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