The Commission adopts the CISAF State aid framework. An opening for biomethane support schemes

On 25 June 2025 the European Commission adopted the State aid framework supporting the Clean Industrial Deal (CISAF). The framework sets out the conditions under which Member States may support renewable energy, industrial decarbonisation and clean technology manufacturing without breaching competition rules. For biomethane, CISAF may become the basis for assessing large support schemes, such as the Czech one or the planned Polish auctions.

Why State aid matters for biomethane

In most countries biomethane is more expensive than natural gas, so it requires operating subsidies. Because these are public funds that may distort competition, every larger scheme requires notification to and approval by the Commission. The rules are assessed under the guidelines on aid for climate, environmental protection and energy and – since June 2025 – under CISAF, which simplifies and speeds up the issuing of decisions for certain categories of projects.

The Czech scheme as an example

The earlier Czech scheme, approved by the Commission in 2023, is worth EUR 2.4 billion and provides for a green premium (bonus) paid for each MWh of biomethane for 20 years; it was assessed under the 2022 guidelines on aid for climate, environmental protection and energy. It is an example of a scheme in which support is tied to the energy produced rather than to installed capacity, which encourages high availability of installations.

The new framework is meant to facilitate similar constructions: two-way contracts for difference, in which the producer returns to the state the difference when the market price exceeds the strike price, and competitive tenders selecting the cheapest bids. France, Denmark and Italy already apply similar mechanisms, notified under the earlier rules.

Significance for the industry in Poland

At that time Poland was preparing auctions for biomethane above 1 MW with contracts for difference of up to 20 years. The experience of other countries (the Czech Republic, France, Denmark) shows that the construction of a two-way CfD or premium, competitive tenders and clear sustainability criteria fits within the framework accepted by the Commission. For Polish organisers it is important to obtain notification of the aid as soon as the act enters into force – otherwise the risk that the auction provisions remain without effect is high.

For investors the length of the support period is also important: in the Polish assumptions up to 20 years, in some other countries 15 years. A longer period improves bankability, but may increase the cost to the system.

What next

Member States will begin notifying schemes under the new framework. For Polish organisers of biomethane auctions it will be important to check whether the construction of the contracts for difference and tenders fits within CISAF, so as to avoid delays in obtaining the Commission's approval. Investors should watch the first decisions, because they will show what levels of support and what contract periods are accepted.