Germany’s renewable energy industry has received a significant boost. The European Commission has approved a €30 billion national aid plan for Germany aimed at promoting the manufacturing of clean technologies. The Commission determined that the plan is “necessary, appropriate, and proportionate” for accelerating the EU’s transition to a net-zero economy and aligns with the Clean Industrial Deal.
This plan was approved under the Clean Industrial Deal State Aid Framework (CISAF) and aims to provide financial support for investments that expand the manufacturing capacity of net-zero technologies and their key components. Covered areas include solar energy, wind energy, batteries, heat pumps, electrolyzers, and carbon capture, utilization, and storage (CCUS). Additionally, support will be extended to the production of new or recycled critical raw materials required for these technologies. The aid will be provided in the form of grants, tax incentives, interest subsidies on new loans, or guarantees for new loans, and will remain valid until December 31, 2030. Prior to this, under the CISAF framework, the European Commission had already approved a €15 billion national aid plan for clean technology manufacturing in Italy. The EU’s Clean Industrial Deal aims to mobilize over €100 billion for clean technology manufacturing within the EU.
