CLEPA | Clean Industrial Deal Backed by Suppliers, But Aid Caps Remain a Concern

CLEPA remains concerned that the Deal’s state aid framework does not adequately address the needs of regions facing the deepest industrial transformation

in CLEPA, 25-06-2025


European automotive suppliers welcome today’s adoption of the Clean Industrial Deal State Aid Framework (CISAF), which links state-aid eligibility to the Net-Zero Industry Act (NZIA) and recognises a wide range of clean-tech and decarbonisation solutions for road decarbonisation. The link with the NZIA is a critical step towards a more aligned funding framework.

While the NZIA annex offers a helpful reference, it still omits several component-level innovations essential for decarbonising road transport. We call on Member States to make full use of the “non-exhaustive” clause to ensure enabling technologies also benefit from the needed support.

CLEPA remains concerned that CISAF does not adequately address the needs of regions facing the deepest industrial transformation. Automotive suppliers have historically built strong regional economies that often outperform national averages, yet these very regions are now most exposed to the shift away from conventional powertrains. The current framework continues to prioritise convergence objectives, favouring poorer regions (so-called ‘assisted areas’), while offering insufficient flexibility to support the reskilling and reinvestment needs of competitive but vulnerable industrial clusters. A paradigm shift is needed, from a cohesion-driven approach to one focused on enabling transformation where it is most urgently needed.

We also welcome the Commission’s recognition of the need to strengthen European value chains: CISAF allows competitive-bidding schemes to include European preference criteria, creating a clearer market signal for locally produced clean technologies and reinforcing the internal market against overseas subsidy races.

 

Policy priority

Growth & Competitiveness

European automotive suppliers lead innovation, investing heavily in R&D for mobility’s future.

 

 

 

 

 

 


 

 

 

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