Home Europe EFTA Surveillance Authority EFTA Surveillance Authority Decision No 121/25/COL of 9 July...
Date: 2025-12-11 Category: Not Applicable State: Union Government Country: Europe

EFTA Surveillance Authority Decision No 121/25/COL of 9 July 2025 amending the substantive rules in the field of State aid by introducing the new Framework for State Aid measures to support the Clean Industrial Deal (Clean Industrial Deal State Aid Framework) [2025/2525]

Issued by EFTA Surveillance Authority · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary** This is a report of the EFTA Surveillance Authority (ESA) Decision No 121/25/COL, issued on 9 July 2025. The document amends the state aid rules by implementing the Clean Industrial Deal State Aid Framework (CISAF). ESA will apply CISAF until 31 December 2030. **Key Points / Main Content** * **Adoption of CISAF:** Introduces the new Framework for State Aid measures to support the Clean Industrial Deal (CISAF) by annexing it to the decision. * **Application of CISAF:** * Applies to measures notified as of 9 July 2025, and also to prior measures notified, including under the Temporary Crisis and Transition Framework (TCTF). * Will apply until 31 December 2030. * Applies to non-notified aid granted on or after 9 July 2025. * ESA will apply the rules in force at the time when the aid was granted in all other cases. * **Adaptations to CISAF for EFTA:** * 'Member State(s)' to be read as 'EFTA State(s)' or 'EEA State(s)'. * 'European Commission' to be read as 'EFTA Surveillance Authority'. * 'the Treaty' or 'TFEU' to be read as 'the EEA Agreement'. * 'Union's rules on State aid' to be read as 'the EEA rules on State aid'. * Reference to Article 107 TFEU to be read as Article 61 of the EEA Agreement. * Reference to Article 108 TFEU to be read as Article 1 of Part I of Protocol 3. * Reference to Commission Regulation (EU) No 794/2004 to be read as EFTA Surveillance Authority Decision 195/04/COL. * '(In-)compatible with the internal market' to be read as ‘(in-)compatible with the functioning of the EEA Agreement'. * 'Within (or outside) the Union', ESA reads it as 'within (or outside) the EEA'. * 'Union law' or 'EU law', ESA reads it as a reference to 'EEA law'. * Reference to the term 'Union standards', ESA reads it as a reference to 'EEA standards'; * Commission Communications, Notices or Guidelines, ESA reads it as a reference to the corresponding ESA Guidelines. **Impact Analysis** **EFTA States** * **Impact:** State aid measures within EFTA States must now comply with the CISAF guidelines as adapted by the ESA. * **Action Required:** Review existing and planned state aid measures to ensure compliance with CISAF, as amended. **EFTA Surveillance Authority (ESA)** * **Impact:** The ESA is now responsible for applying and enforcing the CISAF within the EFTA States. * **Action Required:** Implement the CISAF, assess state aid measures according to the new framework, and ensure compliance by the EFTA States.

Key Entities Referenced

Clean Industrial Deal State Aid Framework (CISAF): A framework for State Aid measures to support the Clean Industrial Deal adopted by the European Commission and applied by the EFTA Surveillance Authority. It replaces the Temporary Crisis and Transition Framework (TCTF). EFTA Surveillance Authority (ESA): The body responsible for ensuring that EFTA States comply with their obligations under the EEA Agreement, particularly concerning State aid. EEA Agreement: The agreement on the European Economic Area, the legal basis for EFTA States' obligations concerning State aid.
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Official Journal EN of the European Union L series 2025/2525 11.12.2025 EFTA SURVEILLANCE AUTHORITY DECISIONNo 121/25/COL of 9 July 2025 amending the substantive rules in the field of State aid by introducing the new Framework for State Aid measures to support the Clean Industrial Deal (Clean Industrial Deal State Aid Framework) [2025/2525] THE EFTA SURVEILLANCE AUTHORITY (‘ESA’), HAVING regard to: the Agreement on the European Economic Area (‘the EEA Agreement’), in particular to Articles 61 to 63 and Protocol 26, the Agreement between the EFTA States on the Establishment of a Surveillance Authority and a Court of Justice (‘the Surveillance and Court Agreement’), in particular to Article 24 and Article 5(2)(b), Protocol 3 to the Surveillance and Court Agreement (‘Protocol 3’), in particular to Article 1(1) of Part I, WHEREAS: Under Article 24 of the Surveillance and Court Agreement, ESA shall give effect to the provisions of the EEA Agreement concerning State aid. Under Article 5(2)(b) of the Surveillance and Court Agreement, ESA shall issue notices or guidelines on matters dealt with in the EEA Agreement, if that Agreement or the Surveillance and Court Agreement expressly so provides or if ESA considers it necessary. Under Article 1(1) of Part I of Protocol 3, ESA shall keep under constant review all systems of aid existing in the EFTA States(1)and propose any appropriate measures required by the progressive development or by the functioning of the EEA Agreement. On 25 June 2025, the European Commission (‘the Commission’) adopted the Clean Industrial Deal State Aid Framework (‘CISAF’)(2). The compatibility conditions outlined in CISAF are based on the case practice and relevant experience gathered by the Commission, including from the application of the Temporary Crisis and Transition Framework (‘TCTF’)(3), which is a temporary framework replaced by CISAF. CISAF is also of relevance for the European Economic Area. (1) Article 1(b) of the Surveillance and Court Agreement states that ‘the term “EFTA States” means the Republic of Iceland and the Kingdom of Norway and, under the conditions laid down by Article 1(2) of the Protocol Adjusting the Agreement between the EFTA States on the Establishment of a Surveillance Authority and a Court of Justice, the Principality of Liechtenstein’. (2) C(2025) 7600 final, not yet published in the Official Journal of the European Union. (3) Communication from the Commission on the Temporary Crisis and Transition Framework for State Aid measures to support the economy following the aggression against Ukraine by Russia (OJ C 101, 17.3.2023, p. 3), as amended by Commission Communications C(2023) 8045 (OJ C, C/2023/1188, 21.11.2023, ELI: http://data.europa.eu/eli/C/2023/1188/oj) and C(2024) 3123 (OJ C, C/2024/3113, 2.5.2024, ELI: http://data.europa.eu/eli/C/2024/3113/oj). This Temporary Crisis and Transition Framework replaced the Temporary Crisis Framework adopted on 28 October 2022 (OJ C 426, 9.11.2022, p. 1), (‘Temporary Crisis Framework’), which had already replaced the previous Temporary Crisis Framework adopted on 23 March 2022 (OJ C 131 I, 24.3.2022, p. 1), as amended on 20 July 2022 (OJ C 280, 21.7.2022, p. 1). The Commission withdrew the Temporary Crisis Framework with effect from 9 March 2023. ELI: http://data.europa.eu/eli/dec/2025/2525/oj 1/4EN OJ L, 11.12.2025 Uniform application of the EEA State aid rules is to be ensured throughout the European Economic Area in line with the objective of homogeneity established in Article 1 of the EEA Agreement. According to point II under the heading ‘GENERAL’ on page 11 of Annex XV to the EEA Agreement, ESA, after consultation with the Commission, is to adopt acts corresponding to those adopted by the Commission. CISAF may refer to certain European Union policy instruments and to certain European Union legal acts that have not been incorporated into the EEA Agreement. With a view to ensuring uniform application of State aid provisions and equal conditions of competition throughout the EEA, ESA will generally apply the same points of reference as the Commission when assessing the compatibility of aid with the functioning of the EEA Agreement. HAVING consulted the Commission, HAVING consulted the EFTA States, HAS ADOPTED THIS DECISION: Article 1 (1) The substantive rules in the field of State aid are amended by introducing the new Framework for State Aid measures to support the Clean Industrial Deal. CISAF is annexed to this Decision and forms an integral part of it. (2) ESA applies CISAF to all measures notified as of 9 July 2025, as well as to measures notified prior to that date, including under the TCTF. ESA will apply CISAF until 31 December 2030. (3) In accordance with ESA’s guidelines on the applicable rules for the assessment of unlawful State aid(4), ESA will apply CISAF to non-notified aid if the aid was granted on or after 9 July 2025, whereas ESA will apply the rules in force at the time when the aid was granted in all other cases. Article 2 ESA applies CISAF with the following adaptations where applicable, including but not limited to: (a) if there is a reference to ‘Member State(s)’, ESA reads it as a reference to ‘EFTA State(s)’ or where appropriate ‘EEA State(s)’; (b) if there is a reference to the ‘European Commission’, ESA reads it, where appropriate, as a reference to the ‘EFTA Surveillance Authority’; (c) if there is a reference to ‘the Treaty’ or ‘TFEU’, ESA reads it as a reference to ‘the EEA Agreement’; (d) if there is a reference to ‘Union’s rules on State aid’, ESA reads it as a reference to ‘the EEA rules on State aid’; (e) if there is a reference to Article 107 TFEU or sections of that Article, ESA reads it as a reference to Article 61 of the EEA Agreement and the corresponding sections of that Article; (f) if there is a reference to Article 108 TFEU or sections of that Article, ESA reads it as a reference to Article 1 of Part I of Protocol 3 and the corresponding sections of that Article; (4) OJ L 73, 19.3.2009, p. 23. 2/4 ELI: http://data.europa.eu/eli/dec/2025/2525/ojEN OJ L, 11.12.2025 (g) if there is a reference to Commission Regulation (EU) No 794/2004(5), ESA reads it as a reference to EFTA Surveillance Authority Decision 195/04/COL; (h) if there is a reference to the wording ‘(in-)compatible with the internal market’, ESA reads it as ‘(in-)compatible with the functioning of the EEA Agreement’; (i) if there is a reference to the wording ‘within (or outside) the Union’, ESA reads it as ‘within (or outside) the EEA’; (j) if there is a reference to ‘Union law’ or ‘EU law’, ESA reads it as a reference to ‘EEA law’; (k) if there is a reference to the term ‘Union standards’, ESA reads it as a reference to ‘EEA standards’; (l) if there is a reference to Commission Communications, Notices or Guidelines, ESA reads it as a reference to the corresponding ESA Guidelines. Only the English language version of this decision is authentic. Decision made in Brussels, 9 July 2025. For the EFTA Surveillance Authority Arne RØKSUND Stefan BARRIGA President College Member Responsible College Member Árni Páll ÁRNASON Melpo-Menie JOSÉPHIDÈS College Member Countersigning as Director, Legal and Executive Affairs (5) Commission Regulation (EC) No 794/2004 of 21 April 2004 implementing Council Regulation (EC) No 659/1999 laying down detailed rules for the application of Article 93 of the EC Treaty (OJ L 140, 30.4.2004, p.1). ELI: http://data.europa.eu/eli/dec/2025/2525/oj 3/4EN OJ L, 11.12.2025 ANNEX Communication of the European Commission C(2025) 7600 final Framework for State Aid measures to support the Clean Industrial Deal and its Annexes I, II and III (Document No 1547161) 4/4 ELI: http://data.europa.eu/eli/dec/2025/2525/oj

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