ESA adopts new State aid guidelines linked to the Clean Industrial Deal

The EFTA Surveillance Authority (ESA) has adopted new State aid guidelines linked to the Clean Industrial Deal (CISAF), following the adoption of the new instrument by the European Commission.

CISAF sets out how the 30 EEA States can design State aid measures to support the development of clean energy, industrial decarbonisation and clean technology. It also replaces the Commission's Temporary Crisis and Transition Framework for State aid measures to support the economy following Russia's invasion of Ukraine, which has been in place since 2022.

The CISAF simplifies State aid rules in five main areas:

• the roll-out of renewable energy and low-carbon fuels;
• temporary electricity price relief for energy-intensive users to ensure the transition to low-cost clean electricity;
• decarbonisation of existing production facilities;
• the development of clean tech manufacturing capacity in the EEA; and
• the de-risking of investments in clean energy, decarbonisation, clean tech, energy infrastructure projects and projects supporting the circular economy.

ESA will apply the CISAF for Iceland, Liechtenstein and Norway from 9 July 2025 until 31 December 2030.

State aid

ESA monitors State aid granted by the EEA EFTA States to allow fair competition and an open Internal Market in the EEA. The EEA EFTA States are obliged to notify any planned State aid measure to ESA. As a rule, the EEA Agreement prohibits State aid to prevent negative impacts on trade, but exceptions are made for purposes such as environmental protection, regional support and research, innovation and development.

The CISAF and ESA's decision adopting it are available here and here.

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