The European Commission has approved a $3.57 billion (€3 billion) German State aid scheme aimed at expanding cleantech manufacturing capacity across Germany. The measure is part of the Clean Industrial Deal and aligns with the objectives of transitioning the EU towards a net-zero economy.

Under the scheme, German authorities will provide grants, tax advantages, interest subsidies, and loan guarantees to companies investing in the production of net-zero technologies, their key components, and related critical raw materials. The aid will exclude nuclear fission technologies and is available until 31 December 2030.

The Commission assessed the scheme under the Clean Industrial Deal State Aid Framework (CISAF), adopted in June 2025, and concluded it meets the necessary criteria to accelerate industrial decarbonisation while minimizing competitive distortions.

Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition, stated that the measure “will ensure additional clean technology manufacturing capacity in Germany, contributing to the goals of the Clean Industrial Deal while keeping competition distortions to a minimum.”

CISAF allows EU member states to support investments in renewable energy, low-carbon fuels, industrial decarbonisation, clean tech manufacturing, and related critical raw materials. The German scheme is the latest implementation under this framework.

Read more: ec.europa.eu