Commission approves ¤700 million Spanish aid scheme to support clean technology manufacturing capacity, in line with Clean Industrial Pact targets

The European Commission has approved a Spanish aid scheme worth €700 million to support strategic investments to add manufacturing capacity for clean technologies in Spain, in line with the objectives of the Clean Industrial Pact. This measure will contribute to the transition towards a zero net emissions economy. The scheme has been approved under the state aid framework of the Clean Industrial Pact, adopted by the Commission on 25 June 2025.

The Spanish aid

Spain notified the Commission of a €700 million aid scheme to support strategic investments to add manufacturing capacity, thus contributing to the achievement of the objectives of the Clean Industrial Pact.

The objective of the scheme is to grant aid for investments that add manufacturing capacity for the production of the net zero emission technologies listed in Annex II of the Clean Industrial Pact state aid framework, as well as for the production of the main components specific to these technologies. Under this scheme, aid will take the form of direct grants. Aid may be granted to companies throughout Spain. Aid may be granted until 31 December 2028.

The Commission has found that the Spanish scheme complies with the conditions set out in section 6.1 of the state aid framework of the Clean Industrial Pact. In particular, the aid will incentivise the production of clean technologies, as well as their main specific components.

The Commission has concluded that the Spanish aid scheme is necessary, appropriate and proportionate to accelerate the transition to a zero net emission economy and to facilitate the development of certain economic activities, which are important for the implementation of the Clean Industrial Pact. This is in line with Article 107(3)(c) of the Treaty on the Functioning of the EU and with the conditions set out in the State aid framework of the Clean Industrial Pact.

On this basis, the Commission has approved this aid scheme under the relevant EU rules.

Background

The European Commission adopted on 25 June 2025 the Clean Industrial Pact state aid framework to promote aid in sectors essential for the transition to a zero net emissions economy, in line with the Green Pact Industrial Plan.

The Clean Industrial Pact state aid framework allows for the following types of aid, which may be granted by Member States until 31 December 2030 in order to accelerate the ecological transition:

• Measures to accelerate the use of renewable energy and low-carbon fuels (sections 4.1 and 4.2). Member States may establish investment support schemes for all renewable energy sources and energy storage, with simplified tendering procedures. Specific rules are also laid down to accelerate the use of low-carbon fuels.
• Measures to provide temporary electricity price relief for large energy consumers to ensure the transition to low-cost clean electricity (section 4.5). These measures will help to prevent industrial activities from relocating to locations where environmental regulations are absent or less stringent, before the decarbonisation of the EU electricity system is fully translated into lower electricity prices.
• Measures to facilitate the decarbonisation of industrial processes (section 5). Member States may support investments in the decarbonisation of industrial activities to reduce dependence on imported fossil fuels. This may be done through electrification, energy efficiency and the transition to the use of renewable and electricity-based hydrogen meeting certain conditions, with extended possibilities to support the decarbonisation of industrial processes through the adoption of hydrogen fuels.
• Measures to ensure sufficient clean technology manufacturing capacity (section 6). Member States may grant investment aid for investment projects related to technologies covered by the Zero Emissions Industry Regulation (end products such as batteries, solar panels, wind turbines, heat pumps, electrolysers and carbon capture, use and storage equipment, including their main specific components). This also covers the production and recycling of related key raw materials.
• Measures to reduce the risk of private investments needed for clean energy deployment, industrial decarbonisation, clean technology manufacturing, certain energy infrastructure projects and projects supporting the circular economy (section 8).

More information on the state aid framework of the Clean Industrial Pact can be found here.

The non-confidential version of the relevant decision will be published under the number SA.119884 in the State Aid Register on the Commission’s competition website, once possible confidentiality issues have been resolved. New publications of state aid decisions on the internet and in the Official Journal are listed in the weekly online competition news.

More information: European Commission