Commission: Greek €400 million state aid scheme approved.

The aid will take the form of direct grants and tax advantages. The measure will be open to enterprises throughout the Greek territory.

Commission: Greek €400 million state aid scheme approved.

This article is an AI translation of an original piece published in Greek. Read original

The European Commission has approved a €400 million Greek state aid scheme to support strategic investments that add clean technology production capacity in line with the objectivesof theClean Industry Agreement. This measure will contribute to the transition to a net-zero emissions economy. The scheme was approved under theClean Industry Agreement State Aid Framework (CISAF)adopted by the Commission onJune 25, 2025.

The Greek measure

Greece notified the Commission, under Section 6.1 of the CISAF,a €400 million schemeto support strategic investments that add clean technology production capacity, contributing to the achievement of the objectives of the Clean Industry Agreement.

The purpose of the scheme is to grant aid for investments that add production capacity for the production, inter alia with secondary raw materials, zero net emission technologies and their key specific components listed inAnnex II to the CISAF, as well as for the production of new or recovered relevant critical raw materials necessary for the production of the final products or key specific components. The aid will take the formof direct grants and tax advantages.Themeasure will be open to companies throughout Greece. Aid may be granted until December 31, 2030.

The Commission found that the Greek scheme complies with the conditions set out in the CISAF. In particular, the aid will provide incentives for the production of clean technologies, as well as their key specific components and related critical raw materials.

The Commission concluded that the Greek scheme is necessary, appropriate and proportionate to accelerate the transition to a net-zero economy and facilitate the development of certain economic activities that are important for the implementationof the Clean Industry Agreement. This is in line withArticle 107(3)(c) of the Treaty on the Functioning of the EUand the conditions set out in the CISAF.

On this basis, the Commission approved the aid measure under EU state aid rules.

Background

On June 25, 2025, the Commission approved the CISAF to promote support measures in sectors that are key to the transition to a net-zero economy, in line with the Clean Industry Agreement.

The CISAF allows for the following types of aid, which can be granted by Member States until December 31, 2030, in order to accelerate the green transition:

  • Measures to accelerate the deployment of renewable energyand low-carbon fuels (sections 4.1 and 4.2). Member States may establish schemes for investments in all renewable energy sources, as well as in energy storage, with simplified tendering procedures. Specific rules are also provided for to accelerate the development of low-carbon fuels.
  • Measures allowing for temporary relief on electricity pricesforenergy-intensive users to ensure the transition to low-cost clean electricity (section 4.5). These measures will help prevent industrial activities from relocating to locations where environmental regulations are absent or less ambitious, before the decarbonization of the EU electricity system is fully reflected in lower electricity prices.
  • Measures to facilitate the decarbonisation of industrial processes(section 5). Member States can support investments in the decarbonisation of industrial activities to reduce dependence on imported fossil fuels. This can be achieved through electrification, energy efficiency, and the transition to renewable hydrogen and electricity-based hydrogen that meets certain conditions, with expanded possibilities for supporting the decarbonisation of industrial processes and the transition to hydrogen-based fuels.
  • Measures to ensure sufficient production capacity in the field of clean technologies(section 6). Member States may grant investment support for strategic projects in accordance withthe Regulation on the net-zero emissions industry (such as batteries, solar panels, wind turbines, heat pumps, electrolytic cells, and carbon dioxide capture, use, and storage). This also includes the production of key components and the production and recycling of related critical raw materials.
  • Measures to minimize the risk to private investmentneeded for the development of clean energy, the decarbonization of industry, the production of clean technologies, certain energy infrastructure projects, and projects supporting the circular economy (section 8).
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