The European Commission has adopted a new Clean Industrial Support and Aid Framework (CISAF) to accelerate the development and deployment of clean technologies across the EU – including heat pumps and their components.
Announced on June 25, the framework simplifies state aid rules, empowering member states to direct public funding more efficiently into strategic decarbonization efforts.
Alongside support for clean tech manufacturing, the CISAF facilitates investments in emissions reduction, industrial energy efficiency and temporary electricity price relief for energy-intensive sectors; all critical enablers for the widespread adoption of heat pumps.
“To achieve the ambitions of the Clean Industrial Deal, considerable investment will be needed,” the European Commission explained in a briefing about the framework. “Funds will therefore need to be mobilized.”
Under the framework, member states can support heat pump projects worth up to €200 million ($235 million), covering up to 45% of total project costs. Additional aid – 10% for small businesses and 5% for medium-sized firms – is available to further encourage market uptake.
Although the framework does not specifically address refrigerants, its focus on heat pump deployment and industrial decarbonization, combined with the EU’s phase out f-gases by 2050, is likely to favor the adoption of natural refrigerant-based technologies.
Designed for long-term stability and set to remain in place until December 31, 2030, the CISAF replaces the Temporary Crisis and Transition Framework introduced in 2022. Other EU state aid rules remain in force and may be used alongside the CISAF for more complex or complementary support schemes.
Supporting clean industry
Member states can fund new manufacturing capacity for technologies listed in the Net-Zero Industry Act, including heat pumps and key components like four-way valves, scroll and rotary compressors. Public support may also be used to stimulate demand through tax breaks and subsidies for end users.
CISAF allows flexible funding for any technology that supports emissions reduction or improved energy efficiency in industry, such as electrification. Support mechanisms can include grants, equity, loans and guarantees to de-risk private investment.
To help companies electrify processes – such as switching from gas furnaces to heat pumps for industrial heating – the CISAF permits electricity price support. This is especially relevant for firms operating in high-cost electricity markets or facing international competition from regions with less stringent climate policies. High electricity rates are often cited as a barrier to the broader adoption of heat pump technologies.
“If Europe wants to lead in clean tech, we must act with courage and clarity,” said Teresa Ribera, the European Commission’s Executive VP for Clean, Just and Competitive Transition. “The new framework simplifies and speeds up support for decarbonization, but it goes further; it recognizes the state as a strategic investor in our future.”
“It’s a tool to drive climate ambition, strengthen Europe’s resilience and ensure our industry remains globally competitive,” she added.
“If Europe wants to lead in clean tech, we must act with courage and clarity.”
Teresa Ribera, Executive VP for Clean, Just and Competitive Transition for the European Commission
