The European Commission has approved a €3 billion ($3.5 bn) German state aid scheme to support strategic investments in clean technology manufacturing, aligned with the objectives of the EU’s Clean Industrial Deal.
The scheme was approved under the Clean Industrial Deal State Aid Framework (CISAF), adopted on 25 June 2025, and is intended to support the expansion of manufacturing capacity for net-zero technologies as part of the EU’s transition towards a net-zero economy.
Under the measure, Germany will provide support for investments that add manufacturing capacity for net-zero technologies and their main components, as well as for the production of new or recovered critical raw materials required for those technologies. Nuclear fission technologies and certain related components are excluded.
Aid will be available in the form of grants, tax advantages, interest subsidies on new loans, or loan guarantees. The scheme will be open to companies across Germany and will run until 31 December 2030.
The Commission said the scheme meets the conditions set out in the CISAF, noting that it provides an incentive to scale up the production of clean technologies, their key components and associated critical raw materials. It concluded that the measure is necessary, appropriate and proportionate to support the Clean Industrial Deal and to facilitate economic activities of strategic importance for the EU’s green transition, in line with EU state aid rules.
The CISAF enables EU member states to support key sectors underpinning the net-zero transition until the end of the decade. It covers measures to accelerate renewable energy and low-carbon fuel deployment, provide temporary electricity price relief for energy-intensive industries, support industrial decarbonisation, expand clean technology manufacturing capacity, and de-risk private investment in clean energy, industrial transformation and circular economy projects.
