• Brussels approves €3 billion German State aid scheme to support cleantech manufacturing capacity

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      Tracey Biller

  • The European Commission has approved a €3 billion German State aid scheme to support strategic investments that add clean technology manufacturing capacity in line with the objectives of the Clean Industrial Deal. The scheme was approved under the Clean Industrial Deal State Aid Framework (CISAF) adopted by the Commission on 25 June 2025.

    The purpose of the German scheme is to grant aid for investments that add manufacturing capacity for the production, including with secondary raw materials, of net-zero technologies and their main specific components (with the exception of nuclear fission energy technologies). Aid will also be granted for the production of new or recovered related critical raw materials.

    Specific measures listed as potential candidates for CISAF funding include those aimed at accelerating the rollout of renewable energy and low-carbon fuels, those allowing temporary electricity price relief for energy-intensive users to ensure the transition to low-cost clean electricity, and those facilitating the decarbonisation of industrial processes to reduce dependency on imported fossil fuels. Also covered are measures to ensure sufficient clean technology manufacturing capacity, where final products may include batteries, solar panels, wind turbines, heat pumps, electrolysers, and carbon capture usage and storage technologies.

    In terms of the German scheme, aid will take the form of grants and tax advantages, interest subsidies for new loans, and guarantees for new loans. The scheme will be open to companies throughout Germany and is available until 31 December 2030.

    For more information about the Clean Industrial Deal State Aid Framework (CISAF), click here.

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