EU approves €84m Danish scheme to boost clean-tech and critical raw material production

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The European Commission has approved a EUR 84 million Danish state aid scheme to expand clean-tech manufacturing and support the production of new and recovered critical raw materials. 

The European Union is stepping up efforts to strengthen its domestic clean-tech manufacturing base, with the European Commission approving a EUR 84 million (USD 96.87 million) aid scheme for Denmark. 

The scheme will provide direct grants to companies investing in additional manufacturing capacity for net-zero technologies and their main components. It will also support investments in the production of new or recovered critical raw materials needed for clean technologies.

The funding is approved under the Commission's Clean Industrial Deal State Aid Framework (CISAF), which was adopted in June 2025. Companies investing in technologies listed under Annex II of the framework will be eligible, with grants available until December 31, 2026.

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Focus on domestic clean-tech manufacturing

The Danish scheme is designed to encourage companies to expand production capacity within the country while strengthening access to materials needed for the clean-energy transition.

The European Commission said the scheme meets the conditions of CISAF, including the requirement that public support should encourage clean technology production and the supply of related critical raw materials.

It also concluded that the funding is necessary and proportionate, with aid limited to the minimum required and only a limited expected impact on competition and trade between EU member states.

The focus on recovered critical raw materials also brings a circular-economy element to the initiative, supporting the recovery and reuse of materials needed for future clean-tech manufacturing.

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Part of a wider European manufacturing push

Denmark's EUR 84 million scheme is part of a broader European effort to build stronger domestic clean-tech supply chains.

In March 2026, the EU adopted its Industrial Accelerator Act, introducing "Made in EU" criteria for strategic sectors including solar and batteries. These criteria are intended to influence public procurement and public support.

The Commission has also approved much larger national support schemes. In February, Germany received approval for a EUR 3 billion (USD 3.55 billion) clean-energy manufacturing scheme covering areas including solar panels, batteries and electrolysers.

In June, the EU launched T-MED, a programme aimed at mobilising EUR 25 billion (USD 28.9 billion) in investment by 2035 and supporting the development of 15 GW of renewable energy capacity. 

The Commission also approved a EUR 23 billion (USD 26.5 billion) Italian support scheme in June to help deploy more than 37.15 GW of renewable energy capacity.

Denmark's latest funding package adds another piece to Europe's broader strategy of expanding clean-tech manufacturing and strengthening access to the critical raw materials needed to support it.

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