The European Commission has announced that it has approved a €3.8 billion German government aid scheme aimed at supporting energy-intensive industries by temporarily lowering electricity prices.
The measures fall under the Clean Industrial Deal government aid framework and are designed to address rising energy costs while supporting decarbonization.
Focus on competitiveness and carbon transition
The scheme targets industries exposed to international competition and the risk of displacement due to high energy prices.
In addition to reducing costs, beneficiary companies must reinvest a significant portion of the aid in clean technologies such as electrification and energy efficiency.
The support program will run from January 2026 to December 2028. Companies will apply for compensation annually, based on actual electricity consumption and wholesale price levels.
The European Commission said the scheme is necessary, appropriate and proportionate as it takes into account both competitiveness concerns and climate goals. Combining cost reductions with mandatory green investments, the framework aims to improve industrial sustainability while promoting the transition to net zero emissions.
Steel sector raises efficiency concerns
After approval, CEO of the German Steel Federation (WV Stahl) Kerstin Maria Rippel said, what, though
