The European Commission has approved a German government plan to subsidise electricity costs for energy-intensive industries, clearing the way for up to €3.8 billion in state support running retroactively from 1 January 2026 through the end of 2028. Under the scheme, Berlin will cap the electricity price companies pay and cover the gap between that capped rate — set at a minimum of €50 per megawatt-hour — and prevailing market prices, with thousands of firms in sectors such as steel, cement, and chemicals expected to benefit. Companies must invest at least half of their savings into cleaner production methods, and the aid is restricted to industries at significant risk of relocating outside the EU; the German Chemical Industry Association welcomed the measure but warned that, under current EU rules, the relief would amount to less than ten percent of most firms' electricity costs.