NEWS

Germany to Receive EU Commission Aid

16/04/2024

Germany is set to receive €2.2bn in direct grant investments from the EU Commission to strengthen cleaner industrial production in the country. These funds, to be granted by the end of 2025, are capped at €200mn for each recipient.

Eligibility depends on companies’, who are dependent on fossil fuels either for energy or as raw materials in their manufacturing operations, plans to electrify their production processes or adopt renewable energy renewable hydrogen-derived fuels instead of fossil fuels. Companies must commit to a 40pc reduction in greenhouse gas (GHG) emissions compared to current levels. Recipients are expected to maintain current production levels or increase them by a maximum of 2pc.

For ETS-related activities, qualification for investments depends on emissions reductions that surpass the applicable ETS benchmarks enforced at the time when the aid is granted.

Although German power and gas demand declined due to reduced industrial activity, manufacturing output rose for the second consecutive month in February and is expected to continue improving toward normal levels.