On July 17, 2026, the European Commission released guidelines aimed at helping member states create state aid schemes based on Carbon Contracts for Difference (CCfD) in line with the Climate, Environmental Protection, and Energy State Aid Guidelines (CEEAG).

The document clarifies the main criteria for assessing the compatibility of proposed aid schemes with state aid rules. Its goal is to facilitate the preparation and implementation of such support mechanisms by member states, while also contributing to their quicker approval by the European Commission. This initiative follows the simplification of rules for investment aid aimed at decarbonizing industry, part of the new state aid framework supporting the Clean Industrial Deal.

CCfD represents a contractual mechanism between the aid provider and recipient, designed to support greenhouse gas emission reductions by eliminating financial risks associated with decarbonization projects. By providing long-term price certainty for CO₂ emission reductions, these contracts help reduce investment risks in financially demanding decarbonization projects, enhance their economic viability, and strengthen the competitiveness of European industry.

The guidelines offer member states practical advice on preparing CCfD-based schemes and detail the key criteria that the European Commission will consider during their assessment. They focus on demonstrating the necessity of aid and its stimulating effect, defining eligible projects, appropriateness of the aid provided, transparency of emission reduction costs, ensuring real net emission reductions, and monitoring the implementation of individual projects.

Included in the guidelines is a model scheme based on the use of CCfD, derived from the European Commission's decision-making practice. However, like other parts of the guidelines, this model does not restrict member states in choosing alternative solutions for support programs, provided these better address their national needs and specifics. Furthermore, the guidelines do not predetermine future assessments or decisions by the European Commission in specific cases.

The guidelines are available in English at: 3087_20260717_guidance_on_carbon_contracts_for_difference.pdf