On 5 February, the European Commission has approved a EUR 3 billion German State aid scheme to support strategic investments that add clean technology (cleantech) manufacturing capacity in line with the objectives of the Clean Industrial Deal. This measure will contribute to the transition towards a net-zero economy. 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 scheme is to grant State 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 and some of their main specific components) listed in Annex II of the CISAF as well as the production of new or recovered related critical raw materials necessary for the production of those final products or main specific components. Under the scheme, the aid will take the form of grants and tax advantages, interest subsidies for new loans or guarantees for new loans. The measure will be open to companies in the whole territory of Germany. The aid may be granted until 31 Dezember 2030.

The Commission found that the German State Aid scheme is in line with the conditions set out in the CISAF. In particular, the aid will incentivise the production of clean technologies, as well as their main specific components and related critical raw materials. The Commission concluded that the German scheme is necessary, appropriate and proportionate to accelerate the transition towards a net-zero economy and facilitate the development of certain economic activities, which are of importance for the implementation of the Clean Industrial Deal.