The European Commission has approved a German aid scheme worth €3 billion to boost manufacturing capacity for clean technologies. The Commission said on Thursday that the measure will help the transition toward a climate‑neutral economy.
The programme is intended to support strategic investments that align with the Clean Industry Deal’s objectives and accelerate the shift to climate neutrality. It will provide assistance for building production capacities for net‑zero technologies and their key components, excluding nuclear fission technology. Companies throughout Germany can receive aid in the form of grants, tax incentives, interest subsidies or guarantees until the end of 2030.
The Commission confirmed that the scheme meets the criteria of the Competitiveness and Innovation Directive (CID) framework. The aid is designed to create incentives for the manufacture of clean technologies and the extraction of critical raw materials. It is described as “necessary, suitable and proportionate” for promoting the transition to a climate‑neutral economy and supporting the development of relevant industrial sectors.
“We will secure additional production capacity for clean technologies in Germany with this scheme” said Vice‑Commissioner Teresa Ribera. “The German state can support essential investments in this sector, helping to achieve the Clean Industry Deal objectives while keeping potential competitive distortions to a minimum”.