EC Approves €3 Billion German Net Zero Investment Scheme 

The European Commission (EC) has ratified a €3 billion (US$3.33 billion) German scheme to support private investments in specific strategic goods needed for a net zero transition. The scheme was approved under the State aid Temporary Crisis and Transition Framework, which was adopted in March to support measures in sectors key to accelerate the green transition and reduce fuel dependencies. The scheme will take the form of direct grants, tax advantages, subsidised interest rates on new loans, and guarantees on new loans. The scheme will be open to companies producing relevant equipment for the net zero transition, including batteries, solar panels, wind turbines, heat-pumps, electrolysers, equipment for carbon capture usage and storage. It will also be available for 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 EC concluded that the German scheme is “necessary, appropriate and proportionate” to accelerate the green transition and “facilitate the development of certain economic activities, which are of importance for the implementation of the Green Deal Industrial Plan“.

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