The European Commission has approved a €500 million Luxembourg scheme to support investments that expand manufacturing capacity for clean technologies.
Luxembourg notified the scheme under the Clean Industrial Deal State Aid Framework (CISAF), a set of EU rules adopted on 25 June 2025 that allows member states to support sectors linked to the transition to a “net-zero” economy — meaning cutting greenhouse gas emissions to as close to zero as possible, with any remaining emissions balanced out, the Commission announced on Friday.
The funding will be provided as direct grants to companies operating anywhere in Luxembourg, and aid can be awarded until 31 December 2030.
The scheme covers investments that add manufacturing capacity for products including solar technologies, wind technologies, heat pumps and battery technologies, as well as key components for those products.
It also allows support for producing new or recovered “critical raw materials” needed to make those technologies, including materials obtained through recycling or reuse.
First CISAF scheme approved for a small member state
“This is the first CISAF scheme approved for a small Member State,” Teresa Ribera, the Commission’s Executive Vice-President for Clean, Just and Competitive Transition, said.
A budget of €500 million is available for additional cleantech manufacturing capacity in Luxembourg, and the grants will help companies make investments in the coming years, Ribera added.
