Overview

• The Commission’s regulation lets member states lower power prices for sectors like steel, plastics, batteries and automotive facing global competition.
• Firms must invest a share of their electricity savings into decarbonization initiatives as a condition of receiving relief.
• The framework replaces the EU’s crisis-era temporary aid scheme and will remain in effect until December 31, 2030.
• A new fast-track mechanism will expedite approval of state aid for clean energy projects in sectors where full electrification is not yet viable.
• The measure is a cornerstone of the Clean Industry Pact championed by President Ursula von der Leyen to boost competitiveness and cut industrial emissions.