European Commission Approves $545 Million Luxembourg Scheme to Boost Cleantech Manufacturing

Boost Cleantech Manufacturing

Luxembourg: The European Commission has approved a €500 million (USD 545 million) state aid scheme by Luxembourg to support strategic investments in boost cleantech manufacturing, aligned with the objectives of the Clean Industrial Deal and the transition to a net-zero economy. The scheme, approved under the Clean Industrial Deal State Aid Framework (CISAF) adopted on 25 June 2025, will provide direct grants to companies across Luxembourg to expand manufacturing capacity for cleantech products such as solar and wind technologies, heat pumps, and battery technologies, including the use of secondary raw materials. It will also support the production and recovery of critical raw materials essential for these technologies, with aid available until 31 December 2030.

The Commission determined that the scheme complies with CISAF conditions, as it incentivizes clean technology production and supports key components and raw materials necessary for the sector. It concluded that the measure is necessary, appropriate, and proportionate to accelerate the EU’s transition to a net-zero economy and facilitate the development of critical economic activities under Article 107(3)(c) of the Treaty on the Functioning of the EU. The CISAF framework enables member states to implement support measures across renewable energy deployment, low-carbon fuels, electricity price relief for energy-intensive industries, industrial decarbonisation, clean technology manufacturing, and de-risking private investments, all aimed at advancing the green transition by 31 December 2030.

Source: EU Commission