Commission approves €3 billion German State aid scheme to support cleantech manufacturing capacity

The European Commission has approved a €3 billion German State aid scheme to support strategic investments that add clean technology (cleantech) manufacturing capacity in line with the objectives of the Clean Industrial Deal. This measure will contribute to the transition towards a net-zero economy. The scheme was approved under the Clean Industrial Deal State Aid Framework (CISAF) adopted by the Commission on 25 June 2025.

The German measure

Germany notified to the Commission, under Section 6.1 of the CISAF, a €3 billion scheme to support strategic investments that add cleantech manufacturing capacity, contributing to the objectives of the Clean Industrial Deal.

The purpose of the scheme is to grant aid for investments that add manufacturing capacity for the production, including with secondary raw materials, of net-zero technologies and their main specific components (with the exception of nuclear fission energy technologies and some of their main specific components) listed in Annex II of the CISAF, as well as the production of new or recovered related critical raw materials necessary for the production of those final products or main specific components. Under the scheme, the aid will take the form of grants and tax advantages, interest subsidies for new loans or guarantees for new loans. The measure will be open to companies in the whole territory of Germany. The aid may be granted until 31 December 2030.

The Commission found that the German scheme is in line with the conditions set out in the CISAF. In particular, the aid will incentivise the production of clean technologies, as well as their main specific components and related critical raw materials.

The Commission concluded that the German scheme is necessary, appropriate and proportionate to accelerate the transition towards a net-zero economy and facilitate the development of certain economic activities, which are of importance for the implementation of the Clean Industrial Deal. This is in line with Article 107(3)(c) of the Treaty on the Functioning of the EU and the conditions set out in the CISAF.

On this basis, the Commission approved the aid measure under EU State aid rules.

Background

On 25 June 2025, the Commission adopted the CISAF to foster support measures in sectors which are key for the transition to a net-zero economy, in line with the Clean Industrial Deal.

The CISAF allows the following types of aid, which can be granted by Member States until 31 December 2030 in order to accelerate the green transition:

• Measures accelerating the rollout of renewable energy and low-carbon fuels (sections 4.1 and 4.2). Member States can set up schemes for investments in all renewable energy sources as well as energy storage, with simplified tender procedures. Specific rules are also provided to accelerate the roll-out of low-carbon fuels.
• Measures allowing temporary electricity price relief for energy-intensive users to ensure the transition to low-cost clean electricity (section 4.5). Such measures will help to avoid industrial activities relocating to locations where environmental regulations are absent or less ambitious, before the decarbonisation of the EU’s electricity system fully translates into lower electricity prices.
• Measures facilitating the decarbonisation of industrial processes (section 5). Member States can support investments in the decarbonisation of industrial activities to reduce dependency on imported fossil fuels. This can happen through electrification, energy efficiency and the switch to the use of renewable and electricity-based hydrogen which complies with certain conditions, with expanded possibilities to support the decarbonisation of industrial processes switching to hydrogen-derived fuels.
• Measures to ensure sufficient clean technology manufacturing capacity (section 6). Member States can grant investment support for investment projects concerning technologies covered by the Net Zero Industry Act (final products such as batteries, solar panels, wind turbines, heat-pumps, electrolysers, and carbon capture usage and storage, including main specific components). This also includes the production and recycling of related critical raw materials.
• Measures to de-risk private investments required for the roll-out of clean energy, industrial decarbonisation, clean tech manufacturing, certain energy infrastructure projects, and projects supporting the circular economy (section 8).

More information: European Commission