The European Commission has approved a €3 billion German State aid scheme designed to expand manufacturing capacity for clean technologies.
The scheme supports “strategic investments” in facilities that produce so-called net-zero technologies and key components, including using secondary raw materials, the Commission declared on Thursday.
It also covers the production of new or recovered critical raw materials needed to make those technologies and components.
Support will be offered as grants, tax advantages, and interest subsidies or guarantees linked to new loans, with the scheme open to companies across Germany.
Aid under the programme can be awarded until 31 December 2030.
How the scheme fits EU State aid rules
The Commission said it assessed the measure under the Clean Industrial Deal State Aid Framework, known as CISAF, which sets conditions for how EU countries can use public funding to support sectors linked to a “net-zero” economy.
Germany notified the scheme to the Commission under the part of CISAF that covers measures to ensure sufficient clean technology manufacturing capacity.
The Commission approved the scheme under EU State aid rules, citing Article 107(3)(c) of the Treaty on the Functioning of the EU, which allows certain types of government support for developing economic activities under specified conditions.
CISAF was adopted by the Commission on 25 June 2025 and allows member states to grant certain types of aid until 31 December 2030, including support for renewable energy and storage, temporary electricity price relief for energy-intensive users, industrial decarbonisation, clean technology manufacturing, and measures to de-risk private investment.
