EU Approves €400 Million Greek Aid Scheme for Cleantech Manufacturing Capacity

The European Commission has approved a €400 million Greek state aid scheme to support investments in cleantech manufacturing capacity, under the new Clean Industrial Deal State Aid Framework adopted in May 2025. Aid will be provided in the form of direct grants and tax advantages to companies in Greece until the end of 2030.

The Clean Industrial Deal State Aid Framework, adopted in May 2025, allows EU member states to provide faster-approved aid for renewable energy deployment and clean technology manufacturing capacity. The Greek scheme approved under CISAF will add cleantech manufacturing capacity aligned with the EU's Clean Industrial Deal objectives, covering net-zero technologies including products manufactured with secondary raw materials, and the production or recovery of critical raw materials necessary for those products. Aid may be granted until the end of 2030.

The Clean Industrial Deal, launched to accelerate EU decarbonization while protecting European manufacturing, is designed to address growing concerns about the competitive position of EU cleantech producers relative to markets such as China, which dominate global capacity for technologies including batteries and solar photovoltaics. CISAF provides a streamlined framework for member states to support industrial investment without lengthy state aid approval processes, enabling faster deployment of capital into strategic sectors. Greece's approved scheme represents one of the early exercises of this new framework.

EU Commissioner Teresa Ribera said the Greek scheme will ensure additional clean technology manufacturing capacity while keeping competition distortions to a minimum. As the EU's Industrial Accelerator Act — which introduces made-in-EU and low-carbon requirements for procurement of technologies including batteries, solar, and heat pumps — is negotiated in Parliament and Council, state aid schemes like Greece's will play an important supporting role in building the manufacturing base needed to meet those requirements. For India, which is developing its own production-linked incentives for clean energy manufacturing, the EU's evolving CISAF and IAA architecture offers a comparative policy framework worth monitoring.

Key figure — €400 million