The European Commission has approved Germany’s €3 billion cleantech manufacturing state aid scheme
Backed under the CISAF, it supports expansion of manufacturing capacity for net-zero technologies including solar and related critical raw materials
Aid will be offered through grants, tax incentives, and interest subsidies or guarantees for new loans, available until December 31, 2030
There is good news for the German renewable energy industry as the government’s €3 billion cleantech manufacturing state aid scheme has been approved by the European Commission. The commission found the scheme “necessary, appropriate and proportionate” to accelerate the bloc’s transition towards a net-zero economy, aligned with the Clean Industrial Deal.
Approved under the Clean Industrial Deal State Aid Framework (CISAF), the scheme aims to provide financial support for investments that expand manufacturing capacity for net-zero technologies and their key components, including solar and wind power, batteries, heat-pumps, electrolyzers and carbon capture usage and storage.
Support will also be available for the production of new or recovered related critical raw materials necessary for their production.
The aid will be provided in the form of grants and tax, interest subsidies for new loans or guarantees for new loans, till December 31, 2030.
“This scheme will ensure additional clean technology manufacturing capacity in Germany,” said Executive Vice-President for Clean, Just and Competitive Transition
Teresa Ribera. “The German state can provide €3 billion in support for key investments in the sector. This will contribute to reaching the goals of the Clean Industrial Deal, while ensuring that potential competition distortions are kept to a minimum.”
EU’s Clean Industrial Deal aims to mobilize over €100 billion for clean technology manufacturing in the EU (see EU: Over €100 Billion For Clean Manufacturing Under Clean Industrial Deal).
This follows the commission having approved cleantech manufacturing state aid scheme worth €1.5 billion in Italy under CISAF (see EU Greenlights €1.5 Billion Italian Scheme For Clean Tech Production).