This funding, in the form of direct grants, is set to accelerate Spain's transition towards a net-zero economy by incentivising strategic investments across the country.
The European Commission has given its formal approval to a substantial €700 million Spanish scheme designed to support strategic investments in clean technology manufacturing. This measure aligns with the central goals of the European Union's ambitious Clean Industrial Deal, providing a significant financial impetus to Spain's green transition efforts.
The scheme was greenlit under the newly established Clean Industrial Deal State Aid Framework (CISAF), which the Commission adopted on June 25, 2025. This framework allows Member States to grant aid for key sectors vital to the net-zero transition, ensuring that support measures are consistent with EU State aid rules and competition objectives.
Spain notified the Commission of its plan to offer aid in the form of direct grants to companies across its entire territory. The primary purpose is to stimulate investments that add manufacturing capacity for the production of specific net-zero technologies and their main components, as listed in Annex II of the CISAF. These technologies typically include strategic products covered by the Net Zero Industry Act, such as batteries, solar panels, wind turbines, heat-pumps, electrolysers, and Carbon Capture Usage and Storage (CCUS) components, alongside the production and recycling of related critical raw materials.
The Commission's decision concluded that the Spanish scheme is both necessary, appropriate, and proportionate to accelerate the transition towards a net-zero economy. By facilitating the development of these specific economic activities, the measure plays a critical role in implementing the overarching Clean Industrial Deal. This finding is rooted in Article 107(3)(c) of the Treaty on the Functioning of the EU, which permits state aid to facilitate the development of certain economic activities, provided it does not unduly affect trading conditions.
The CISAF, which will remain in place until December 31, 2030, is a major pillar of the EU's industrial strategy. It establishes clear rules for Member States to support the green transition, covering a wide range of measures, including accelerating the rollout of renewable energy and low-carbon fuels, providing temporary electricity price relief for energy-intensive users, and facilitating the decarbonisation of industrial processes. The approval of the Spanish scheme marks a concrete application of the framework's goal to bolster domestic clean technology supply chains.
The non-confidential details of this decision are slated to be made public under the case number SA.119884 in the Commission’s State aid register, providing full transparency on the approved measure.
