EU Approves Germany's €3 Billion State Aid Plan to Boost Net-Zero Technologies and Critical Raw Material Production

Recently, the European Commission formally approved a €3 billion national aid plan from Germany. This plan aligns with the objectives of the Clean Industrial Agreement and will strongly support the transition to a net-zero economy. The approval is based on the Clean Industrial Agreement State Aid Framework (CISAF) issued by the EU on June 25, 2025.

The plan covers enterprises across Germany, with the subsidy implementation period lasting until December 31, 2030. Support forms include direct grants, tax incentives, interest subsidies for new loans, and loan guarantees. Funds will primarily be used for expanding production capacity of net-zero technologies and their core components listed in Annex II of CISAF, while also supporting the application of secondary raw materials, as well as the production and recycling of critical raw materials.

After review, the European Commission determined that the plan meets the relevant conditions of CISAF, effectively incentivizes local production of clean technologies, core components, and critical raw materials, and is necessary and reasonable for promoting the transition to a net-zero economy and implementing the Clean Industrial Agreement. It complies with the Treaty on the Functioning of the European Union and EU state aid rules, hence its approval.

It is reported that the Clean Industrial Agreement State Aid Framework (CISAF) was officially implemented in June 2025, aiming to provide policy support for key areas of the EU's net-zero economic transition. Member states can introduce subsidy measures under this framework by the end of 2030, covering multiple directions such as the promotion of renewable energy, electricity price relief for energy-intensive enterprises, decarbonization of industrial processes, ensuring clean technology production capacity, and mitigating risks associated with green investments.