The European Commission has approved a €1.5 billion Italian State aid scheme to support strategic investments that add clean technologies (cleantech) manufacturing capacity, in line with the objectives of the Clean Industrial Deal. This measure will contribute to the transition towards a net-zero economy. The scheme was approved under the Clean Industrial Deal State Aid Framework (CISAF) adopted by the Commission on 25 June 2025. The scheme will be co-financed from the Recovery and Resilience Fund.

The Italian measure

Italy notified to the Commission, under Section 6.1 of the CISAF, a €1.5 billion scheme to support strategic investments that add manufacturing capacity of cleantech, contributing to the objectives of the Clean Industrial Deal.

The purpose of the scheme is to grant aid for investments that add manufacturing capacity for the production of net-zero technologies listed in Annex II of the CISAF, as well as the production of the main specific components of these technologies. Under the scheme, the aid will take the form of grants, subsidised loans, or a combination of both. The measure will be open to companies in the whole territory of Italy. The aid may be granted until 31 December 2030.

The Commission found that the Italian scheme is in line with the conditions set out in the CISAF. In particular, the aid will incentivise the production of clean technologies, as well as their main specific components.

The Commission concluded that the Italian scheme is necessary, appropriate and proportionate to accelerate the transition towards a net-zero economy and facilitate the development of certain economic activities, which are of importance for the implementation of the Clean Industrial Deal. This is in line with Article 107(3)(c) of the Treaty on the Functioning of the EU and the conditions set out in the CISAF.

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

Background

On 25 June 2025, the Commission adopted the CISAF to foster support measures in sectors which are key for the transition to a net-zero economy, in line with the Clean Industrial Deal.

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

  • Measures accelerating the rollout of renewable energy and low-carbon fuels (sections 4.1 and 4.2). Member States can set up schemes for investments in all renewable energy sources as well as energy storage, with simplified tender procedures. Specific rules are also provided to accelerate the roll-out of low-carbon fuels.
  • Measures allowing temporary electricity price relief for energy-intensive users to ensure the transition to low-cost clean electricity (section 4.5). Such measures will help to avoid industrial activities relocating to locations where environmental regulations are absent or less ambitious, before the decarbonisation of the EUs electricity system fully translates into lower electricity prices.
  • Measures facilitating the decarbonisation of industrial processes (section 5). Member States can support investments in the decarbonisation of industrial activities to reduce dependency on imported fossil fuels. This can happen through electrification, energy efficiency and the switch to the use of renewable and electricity-based hydrogen which complies with certain conditions, with expanded possibilities to support the decarbonisation of industrial processes switching to hydrogen-derived fuels.
  • Measures to ensure sufficient clean technology manufacturing capacity (section 6). Member States can grant investment support for investment projects concerning technologies covered by the Net Zero Industry Act (final products such as batteries, solar panels, wind turbines, heat-pumps, electrolysers, and carbon capture usage and storage, including main specific components). This also includes the production and recycling of related critical raw materials.
  • Measures to de-risk private investments required for the roll-out of clean energy, industrial decarbonisation, clean tech manufacturing, certain energy infrastructure projects, and projects supporting the circular economy (section 8).

More information on the CISAF can be found here.

All investments and reforms entailing State aid included in the national recovery plans presented in the context of the Recovery and Resilience Facility (‘RRF) must be notified to the Commission for prior approval, unless covered by one of the State aid block-exemption rules.

The Commission assesses measures entailing State aid contained in the national recovery plans presented in the context of the RRF as a matter of priority. At the same time, the Commission makes sure in its decision that the applicable State aid rules are complied with, in order to preserve the level playing field in the Single Market and ensure that the RRF funds are used in a way that minimises competition distortions and do not crowd out private investment.

The non-confidential version of todays decision will be made available under the case number SA.120488 in the State aid register on the Commissions competition website once any confidentiality issues have been resolved. New publications of State aid decisions on the internet and in the Official Journal are listed in the Competition Weekly e-News.