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Italy secures EU approval for $1.75 bn cleantech manufacturing boost

11 Dec '25
2 min read
Italy secures EU approval for $1.75 bn cleantech manufacturing boost
Pic: Shutterstock

Insights

  • The European Commission has approved Italy's $1.75 billion State aid scheme to expand clean-tech manufacturing under the CISAF framework.
  • Co-financed through the Recovery and Resilience Fund, the scheme will support new capacity for net-zero technologies via grants and subsidised loans until December 31, 2030.
  • The Commission said the measure is necessary to accelerate the net-zero transition.

The European Commission has cleared a €1.5 billion (~$1.75 billion) Italian State aid scheme designed to expand domestic clean technology manufacturing capacity, marking a major step in advancing the EU’s Clean Industrial Deal.

Approved under the Clean Industrial Deal State Aid Framework (CISAF), the measure will be co-financed through Italy’s Recovery and Resilience Fund and will run until December 31, 2030.

The scheme supports strategic investments that add new manufacturing capacity for net-zero technologies listed in Annex II of the CISAF. Aid will be available to firms across Italy in the form of grants, subsidised loans or blended support, the European Commission said in a release.

The Commission concluded that the measure meets CISAF requirements, noting that it provides necessary, appropriate and proportionate incentives to scale up clean technology production, reduce fossil-fuel dependence and accelerate the EU’s transition to a net-zero economy. The approval aligns with Article 107(3)(c) of the Treaty on the Functioning of the EU.

The CISAF, adopted on June 25, 2025, enables Member States to support renewable rollout, industrial decarbonisation, clean electricity for energy-intensive industries, clean tech manufacturing capacity and measures that de-risk private investment.

The Italian scheme falls under Section 6.1, which focuses on expanding strategic clean-tech production to strengthen Europe’s industrial resilience and competitiveness.

ALCHEMPro News Desk (HU)

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