What's Happening?
An open letter from T&E, car manufacturers, and cleantech industries calls on the EU Commission to amend the Clean Industrial Deal State Aid Framework (CISAF) to support cleantech manufacturing. The letter emphasizes the need for output-based production
support to make manufacturing aid bankable, which is crucial for scaling up production of strategic clean technologies like batteries. The Commission is expected to launch the Electrification Action Plan to address energy crises and reduce Europe's exposure to energy shocks.
Why It's Important?
The proposed changes to the CISAF are critical for enhancing the EU's competitiveness in the global cleantech market. By making manufacturing aid more bankable, the EU can attract private investment and accelerate the deployment of clean technologies. This is essential for achieving the EU's electrification goals and reducing dependency on fossil fuels, thereby enhancing energy security and sustainability.
What's Next?
The EU Commission is expected to consider these recommendations as part of the upcoming Electrification Action Plan. If implemented, the revised CISAF could lead to increased investment in cleantech manufacturing, boosting the EU's capacity to meet its electrification and climate goals. The success of this initiative will depend on the Commission's ability to balance state aid with market competitiveness and ensure equitable distribution of resources across member states.
