On the proposal of Federal Energy Minister Mathieu Bihet, the Council of Ministers today approved, in first reading, the introduction of the “energy standard”. This long-awaited decision aims to significantly strengthen the competitiveness of our energy-intensive industries, which are facing rising costs and international competition.
Energy prices are today one of the determining factors for industrial competitiveness. Belgian companies active in strategic sectors currently bear higher electricity costs than those seen in neighbouring countries, such as France for example.
This situation puts our large companies at a disadvantage compared to their direct competitors. It threatens jobs, delays investment decisions and weakens value chains that are strategic for our open economy. Without a targeted response, the risk of relocation and lasting loss of industrial capacity is real.
With this reform, the federal government confirms a clear vision: protecting industrial competitiveness while bringing companies into the energy transition. “The challenge is to combine decarbonisation and competitiveness so that immediate support also fits within our targets for reducing greenhouse gas emissions,” confirms the Energy Minister.
A combined mechanism
The energy standard is based on a hybrid mechanism. It combines structural support through a reduction in electricity transport tariffs with the temporary application of the European CISAF state aid framework (Clean Industrial Deal State Aid Framework), announced on 25 June by the European Commission. This approach helps to narrow the competitiveness gap with neighbouring countries.
In practice, the CISAF framework means that the energy-intensive companies concerned will benefit from targeted relief on the energy (commodity) portion of their electricity bill. This support, capped at a maximum reduction of 50%, will significantly cut billing costs. In turn, companies will have to invest in decarbonisation, energy efficiency and demand flexibility projects. This will strengthen the competitiveness and resilience of our companies while accelerating the energy transition.
“We have decided to act from 2026, with clear rules, based on a robust European framework and a concrete decarbonisation policy. This public support becomes a lever for investment and industrial modernisation. It strengthens our economy and supports the industry's energy transition in a positive and pragmatic way,” says Minister Mathieu Bihet.
A budget of nearly one billion euros over the legislature
The budget allocated to the energy standard over the whole legislature amounts to nearly one billion euros. This amount includes the credits provided for in the federal budget framework, as well as additional funding decided during the last budget conclave.
This funding targets the Belgian energy-intensive companies most exposed to international competition, for which electricity represents a decisive share of production costs. The sectors and companies concerned will be identified based on their consumption profile, in order to best target and prioritise situations.
By combining the temporary European framework with the structural reduction in electricity transport tariffs, the Government is sending a strong signal to the industrial fabric: Belgium remains a country where it is possible to invest, produce and innovate, while building a modern and resilient economy.
“We will not let our industry be penalised by energy costs it does not control. The energy standard protects jobs and competitiveness today, while preparing industry for tomorrow,” concludes Mathieu Bihet.
In summary
The energy standard pursues several complementary objectives:
- It aims to strengthen the competitiveness of Belgian energy-intensive industries, which are particularly exposed to higher energy costs than those seen abroad.
- It helps to stabilise industrial employment and secure investments in sectors that are key to the Belgian economy.
- It accelerates the industry's energy transition, with public support tied to concrete commitments on energy efficiency and decarbonisation.
- The number “50” to remember for the CISAF track:
- 50% of the price: aid can cover a maximum reduction of 50% of the average annual wholesale market price.
- 50% of consumption: this aid can only apply to a maximum of 50% of annual electricity consumption.
- Minimum €50/MWh: this reduction cannot bring prices below EUR 50/MWh for eligible consumption.
- 50% for investment: at least 50% of the aid received must be reinvested in decarbonisation, energy efficiency and demand flexibility projects.