EU-Commission approves German scheme to support private investments in strategic goods with respect to net-zero economy

The European Commission has approved a €3 billion German scheme to support private investments in specific strategic goods needed to foster the transition towards a net-zero economy, in line with the Green Deal Industrial Plan. The scheme was approved under the State aid Temporary Crisis and Transition Framework, adopted earlier by the Commission to support measures in sectors which are key to accelerate the green transition and reduce fuel dependencies.

Under the German measure, the aid will take the form of (i) direct grants; (ii) tax advantages; (iii) subsidized interest rates on new loans; or (iv) guarantees on new loans.

The measure will be open to companies producing relevant equipment, namely batteries, solar panels, wind turbines, heat-pumps, electrolyzers, equipment for carbon capture usage and storage, as well as key components designed and primarily used as direct input for the production of such equipment or related critical raw materials necessary for their production.

The Commission found that the German scheme is in line with the conditions set out in the Temporary Crisis and Transition Framework. In particular, the aid (i) will incentivize the production of relevant equipment for the transition towards a net-zero economy; and (ii) will be granted no later than 31 December 2025.

More information to be found in the press release of 19 July 2023.