Commission approves €1.1 billion French State aid scheme to support clean technology manufacturing capacity

The European Commission has approved a €1.1 billion French programme to support strategic investments that increase clean technology manufacturing capacity, in line with the objectives of the Clean Industrial Pact. This measure will contribute to the transition to a net-zero emissions economy. The programme was approvedunder the Clean Industrial Pact State Aid Framework (CISAF),adopted by the Commission on25 June 2025.This is the eighth clean technology manufacturing capacity programme approved since the adoption of the CISAF, which has released more than €10 billion in support for investments in such capacity.

The French measure

France notified the Commission, under the CISAF, of a €1.1 billion plan to support strategic investments that increase clean technology manufacturing capacity, thereby contributing to the objectives of the Clean Industrial Deal.

The programme encourages investment in additional production capacity for net-zero technologies listed inAnnex IIof the CISAF, such as solar energy, offshore and onshore wind energy, heat pumps and battery technologies. The programme also covers costs related to the main specific components of these technologies and the corresponding critical raw materials. Under the programme, the aid will take the form of a tax credit. The measure will be open to the whole of France and may be granted until 31 December 2028.

The Commission concluded that the French scheme complies with the conditions set out in the CISAF. The Commission concluded that the French scheme is necessary, appropriate and proportionate to accelerate the transition to a net-zero economy and to facilitate the development of certain economic activities important for the implementation ofthe Clean Industrial Pact. This isinlinewithArticle 107(3)(c) of the Treaty on the Functioning of the EUand the conditions set out in the CISAF.

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

Fund

On 25 June 2025, the Commission adopted theCISAFto promote support measures in key sectors for the transition to a net-zero economy, in line with the Clean Industrial Pact.

The CISAF allows for the following types of aid, which Member States may grant until 31 December 2030 to accelerate the green transition:

• Measures to accelerate the deployment of renewable energy and low-carbon fuels(sections 4.1 and 4.2). Member States may establish investment programmes for all renewable energy sources, as well as for energy storage, with simplified tendering procedures. Specific rules are also laid down to accelerate the deployment of low-carbon fuels.
• Measures to allow a temporary reduction in the price of electricity for energy-intensive users, in order to ensure the transition to clean and low-cost electricity (section 4.5). These measures will help prevent industrial activities from relocating to places where there are no environmental regulations or where they are 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 dependence on imported fossil fuels. This can be achieved through electrification, energy efficiency and the transition to renewable and electric hydrogen that meets certain conditions, with greater possibilities for supporting the decarbonisation of industrial processes through the transition to hydrogen-derived fuels.
• Measures to ensure sufficient manufacturing capacity for clean technologies (section 6). Member States may grant support for investment in projects related to technologies covered by theNet Zero Industry Act(end products such as batteries, solar panels, wind turbines, heat pumps, electrolysers and carbon capture, utilisation and storage systems, including specific key components). This also includes the production and recycling of related critical raw materials.
• Measures to reduce the risk of private investments necessary for the implementation of clean energy, industrial decarbonisation, clean technology manufacturing, certain energy infrastructure projects and projects supporting the circular economy (section 8).

More information: European Commission.