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29 January 2026

Germany Special funds: funding without clawback – State-aid-compliant project structuring

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Special funds operate within the European legal framework. To ensure that projects remain viable in the long term, they must be structured in full compliance with State aid law.

Particularly in projects involving private participation, EU law determines whether funding is permissible – or whether it may later be subject to clawback.

 

The European legal framework

The allocation of public funds is governed by Articles 107–109 TFEU and the General Block Exemption Regulation (GBER).

Only funding measures that are in-line with the market or exempt qualify as non-State aid.

 

Relevant funding frameworks

In practice, the following frameworks are particularly relevant:

  • Climate, Energy and Environmental Aid Guidelines (CEEAG) – e.g. for energy, decarbonisation, and hydrogen projects
  • GBER Articles 36–55 – environmental and infrastructure aid
  • IPCEI / Recovery and Resilience Facility (RRF) – transnational projects
  • De minimis Regulation – small-scale aid below EU thresholds

EU State aid law is not an obstacle, but rather a safeguard for long-term funding eligibility.

 

What matters to investors

For private investors, the key considerations are:

  • No overcompensation: funding must not exceed the actual financing gap
  • Open, transparent, and non-discriminatory procedures: selection processes must be fair
  • Ex ante State aid assessment: provides legal certainty against clawback risks

 

Our advisory focus

We support clients with:

  • State aid law assessments of projects and funding decisions
  • Structuring state-aid-compliant PPP and co-financing models
  • Representation in notification and recovery proceedings

 

Understanding funding eligibility – unlocking opportunities

For international investors, developers, and asset managers, special funds offer new access to funding, co-investment opportunities, and tax-efficient structures. At the same time, complex requirements arise – ranging from budgetary and State aid law to ESG criteria and the monitoring of fund utilisation.

We combine legal precision with commercial understanding – and support projects from funding strategy through to implementation.

Do you have questions? Get in touch.

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