The European Commission has approved a €3 billion German State aid scheme aimed at strengthening the country’s clean technology manufacturing capacity, in line with the objectives of the Clean Industrial Deal (CID) and the European Union’s goal of achieving climate neutrality by 2050.
The scheme, authorised under the Clean Industrial Deal State Aid Framework (CISAF) adopted in June 2025, will support strategic investments to expand industrial capacity for the production of net-zero technologies, their key components, and the associated critical raw materials, contributing to the EU’s green reindustrialisation strategy.
Supporting Europe’s net-zero industrial transition
According to the Commission, the measure will help accelerate the transition towards a net-zero economy while strengthening Europe’s industrial competitiveness and strategic autonomy. The aid will be available across the entire territory of Germany and can be granted until 31 December 2030.
The scheme will cover investments in the manufacturing of clean technologies and their main components, including production based on secondary raw materials, as well as the generation and recovery of critical raw materials needed for these technologies. Nuclear fission technologies and certain associated components are excluded.
Under the programme, financial support may take the form of direct grants, tax advantages, interest-rate subsidies for new loans, or loan guarantees, offering companies flexible financing options to accelerate project development.
Commission assessment
The European Commission concluded that the German programme is necessary, appropriate, and proportionate to support industrial decarbonisation and facilitate the development of economic activities that are essential for the implementation of the Clean Industrial Deal.
Brussels highlighted that the scheme will incentivise the domestic production of clean technologies, reduce reliance on imported fossil fuels and critical components, and strengthen European supply chains in key strategic sectors.
The measure was approved under Article 107(3)(c) of the Treaty on the Functioning of the European Union (TFEU), which allows State aid to facilitate the development of certain economic activities when it does not adversely affect trading conditions.
Strategic boost for clean manufacturing
The programme aligns with broader EU efforts to scale up manufacturing capacity for strategic green technologies, such as batteries, solar panels, wind turbines, heat pumps, electrolysers, and carbon capture, utilisation and storage (CCUS) technologies, as set out in the Net Zero Industry Act.
By reinforcing Germany’s industrial base, the scheme is expected to support job creation, innovation, and long-term industrial competitiveness, while accelerating Europe’s path towards a resilient, low-carbon economy.
Background: Clean Industrial Deal State Aid Framework
The CISAF was adopted in June 2025 to enable Member States to provide targeted and temporary support to key sectors driving the EU’s climate transition. It allows national governments to deploy aid in areas including:
Renewable energy and energy storage deployment
Temporary electricity price relief for energy-intensive industries
Industrial decarbonisation projects
Clean technology manufacturing
De-risking private investment in strategic green infrastructure
With this approval, Germany joins a growing number of Member States using the CISAF framework to mobilise large-scale public funding in support of Europe’s clean industrial transformation.