EU Grants Germany €3 Billion for Clean‑Tech Manufacturing to Speed Climate‑Neutral Transition.
Politics

EU Grants Germany €3 Billion for Clean‑Tech Manufacturing to Speed Climate‑Neutral Transition.

The European Commission has approved a German state‑aid package worth three billion euros to boost production capacity for clean technologies. The Brussels Authority said on Thursday that the measure will aid the transition to a climate‑neutral economy.

Designed to support strategic investments aligned with the Clean Industry Deal, the package will accelerate the shift to climate‑neutrality. It allows firms to invest in manufacturing capacity for net‑zero technologies and key components, excluding nuclear fission energy technologies. Aid can come in the form of grants, tax incentives, interest subsidies or guarantees. Companies throughout Germany will be able to benefit from these supports until the end of 2030.

The Commission confirmed that the package meets the criteria under the Competition and Innovation in the Energy (CID) state‑aid framework. The aid is intended to create incentives for the production of clean technologies and the extraction of critical raw materials. The measure was described as “necessary, suitable and proportionate” to promote the transition to a climate‑neutral economy and to support the development of relevant economic sectors.

“This regulation will ensure additional production capacity for clean technologies in Germany” said EU Commission Vice‑President Teresa Ribera. She added that German state support can help make important investments in this sector, “contributing to the goals of the Clean Industry Deal while keeping potential distortions of competition to a minimum”.