The European Commission has approved a €1 billion Portuguese State aid scheme to support investments in strategic sectors necessary to foster the transition to a net-zero economy. The scheme aims to boost the production of equipment essential for the net-zero transition, in alignment with the Green Deal Industrial Plan. This aid, provided in the form of direct grants, targets companies producing key equipment such as batteries, solar panels, wind turbines, heat pumps, electrolysers, and carbon capture and storage equipment. It also covers components and raw materials crucial for their production. The Commission found the Portuguese scheme to be in line with the Temporary Crisis and Transition Framework, as it incentivizes the production of relevant equipment for the net-zero transition and ensures aid is granted by the end of 2025. By facilitating the development of economic activities vital for the Green Deal Industrial Plan, this scheme is deemed necessary, appropriate, and proportionate. The Temporary Crisis and Transition Framework, established in 2023, supports various aid types until 2025 to accelerate the green transition. It includes measures to promote renewable energy, decarbonize industrial processes, and invest in key sectors for the net-zero economy transition. The scheme enables Member States to provide support for strategic equipment manufacturing, components production, and critical raw materials, with specified support levels based on beneficiary size and location. Additional aid can be granted to small and medium-sized enterprises and companies in disadvantaged regions, ensuring cohesion objectives. In conclusion, this approval highlights Portugal's commitment to advancing the green transition and supporting investments in sectors crucial for achieving a net-zero economy. The aid scheme's alignment with EU State aid rules signifies a positive step towards accelerating sustainable development and transitioning to a greener future.