Industrial Policy & Trade Monitor· 2663 actions· ✨ 89 recent

On 2026-02-06 Chongqing municipality launched the "Aerospace-Finance (Chongqing) Aerospace Information Low-Altitude Economy Industry Fund" (航天工融（重庆）空天信息低空经济产业基金), a CNY 2 billion (~USD 288 million) state-guided investment vehicle jointly capitalized by ICBC Investment (工银投资), Aerospace Investment Holdings (航天投资控股), the Chongqing Industrial Mother Fund, and the Liangjiang Fund. It follows a "government guidance + market-based operation" model and is directed at the aerospace-information (satellite/space-tech) and low-altitude economy (drones, eVTOL, general aviation) sectors, building on Chongqing's November 2025 low-altitude-economy state-aid package.

NIB, the multilateral development bank owned by the eight Nordic and Baltic member states, signed a EUR 11.4 million 10-year loan with Metrosert AS, Estonia's national testing, calibration and certification body, to finance a new Drone Technology Unit within Metrosert's Applied Research Centre in Tallinn. The unit will house nine laboratories to develop, validate and industrialise unmanned aerial, ground and maritime systems, with most planned activity explicitly defence-related, covering unmanned aviation, communications, navigation, flight physics and hardware security. NIB financing at preferential development-bank rates functions as a below-market state-backed subsidy to a strategic dual-use research facility; the unit is targeted to be fully operational by summer 2027 as part of a EUR 42.9 million total Applied Research Centre build-out.

Brazil's national development bank BNDES approved BRL 200 million (~USD 37.6 million) in financing for Eve Air Mobility — the Embraer subsidiary developing an electric vertical take-off and landing (eVTOL) aircraft — split between BRL 160 million from the Fundo Clima (Climate Fund, Green Industry modality) and BRL 40 million under the FINEM Inovação (Incentivised Line A) facility. The funds finance integration of the aircraft's electric propulsion system and prepare the vehicle for the flight-test campaign required to obtain type certification from Brazil's civil aviation authority ANAC. Since 2022, BNDES has extended more than BRL 1.2 billion in cumulative financing to Eve's eVTOL programme, including support for its Taubaté (SP) production facility.

On 27 November 2025, Brazil's Gecex (the executive committee of the Foreign Trade Chamber, Camex) approved a new credit product allowing Brazilian airlines to use the Export Guarantee Fund (Fundo de Garantia às Exportações, FGE) as collateral for domestic bank financing of aviation-kerosene (QAV) purchases, unlocking up to BRL 2 billion (~USD 370 million) in government-backed credit. In exchange for the below-market-rate financing, airlines must take on one of three sustainable-aviation-fuel (SAF) counterparts: buy domestically produced SAF, invest in domestic SAF production plants, or contribute to the National Fund for Industrial and Technological Development (FNDIT) for SAF-related projects. Global Trade Alert logs the measure as both a loan-guarantee intervention and a separate "local content incentive" intervention tied to the SAF counterpart requirement.

The Chongqing Municipal Government General Office issued Notice 渝府办发〔2025〕58号 on 2025-11-22, promulgating "Several Policy Measures to Promote High-Quality Development of the Low-Altitude Economy," effective immediately through 2027-12-31. The package comprises eight capped-percentage subsidy tracks covering low-altitude public-service procurement, logistics route operating subsidies (up to RMB 150,000 per route), demonstration projects (up to RMB 20 million), test-flight infrastructure (20% of investment, capped at RMB 5 million), manufacturing R&D and first-of-kind equipment support (up to 30% of receipts, capped at RMB 5 million), national innovation/manufacturing centres (up to RMB 20 million), ground-station infrastructure (20% of investment, capped at RMB 10 million), private-equity fund-manager incentives (1% of invested capital, capped at RMB 10 million cumulative), and AI-compute subsidies (20% of service cost, up to RMB 1 million/year). Global Trade Alert classifies all eight interventions as state aid with a "certainly harmful" (Red) rating.

On 30 October 2025, Brazil's National Monetary Council (CMN) approved a resolution regulating the use of up to BRL 4 billion (~USD 746 million) from the National Civil Aviation Fund (Fundo Nacional de Aviação Civil, FNAC) for below-market-rate loans to scheduled air-transport providers. The program comprises six credit lines — covering sustainable aviation fuel (SAF) purchases, aircraft and engine maintenance, aircraft acquisition and advance payment, and logistics infrastructure — at interest rates of 6.5-7.5% per year, with disbursement formalised via a BNDES contract in December 2025. Airlines drawing on the funds must accept counterpart obligations: an accelerated SAF blending trajectory (1 percentage point per year toward a 10% target, ahead of the legal mandate), a 30% increase in regional flights to the Legal Amazon and Northeast versus 2024 levels, and a freeze on shareholder dividend distributions during the loan grace period.

Japan Bank for International Cooperation (JBIC), Japan's state export-credit institution, signed a guarantee agreement on 2025-10-20 covering approximately JPY 37.4 billion (~USD 248 million) of loans from a consortium of eleven private Japanese financial institutions to ANA HOLDINGS INC. for the import of two Boeing 787-10 aircraft from the United States. JBIC frames the guarantee as supporting ANA Group's fleet-decarbonization transition strategy and maintaining the international competitiveness of the Japanese aviation industry.

On 24 July 2025 the European Investment Bank (EIB) and Italian energy major Eni signed a EUR 500 million (approx. USD 587.8 million) 15-year finance contract to support conversion of Eni's Livorno refinery in Tuscany into a biorefinery. The project adds a biogenic pre-treatment unit and a 500,000-tonne/year Ecofining(TM) plant able to produce HVO diesel, HVO naphtha and bio-LPG from waste and plant-residue feedstocks, with future flexibility to shift output toward sustainable aviation fuel (SAF). It is Eni's third domestic biorefinery conversion (after Venice and Gela) and part of Enilive's plan to reach 5+ million tonnes/year of biorefinery capacity by 2030. Global Trade Alert logged the financing as a "Red" (trade/investment-distorting) state loan.

The New Development Bank (NDB) Board of Directors approved a RMB 1.448 billion (~CNY 1.45 billion, ~USD 200 million) sovereign loan to the People's Republic of China on 14 July 2025 to finance the Shanxi Taiyuan Wusu Zero-Carbon Airport Project. The project will convert Taiyuan Wusu International Airport into China's first zero-carbon airport via over 100 MW of installed solar capacity, a pilot PV-Energy Storage-Direct Current-Flexible Loads (PEDF) system, and 100% renewable-based heating and cooling — a first among China's regional hub-scale airports. Shanxi Aviation Industry New Energy Company (SAINE), a joint venture of Shanxi Aviation Industry Group (SAIG) and two government-owned geological-engineering and industrial-construction enterprises, will implement the project between 2025 and 2029. NDB below-market development-bank pricing functions as an indirect state-adjacent subsidy for the build-out.

China Chengtong Holdings Group, a SASAC-supervised central state capital operation company, completed business registration of the "Chengtong Science and Technology Innovation Investment Fund (Beijing) Limited Partnership" in late May/early June 2025, jointly capitalised with Sinopec, China Aviation Oil, and the Haidian District Government of Beijing. The fund has a total planned scale of CNY 30 billion (~USD 4.2 billion) with a first-phase scale of CNY 10 billion (~USD 1.4 billion) and a 15-year term. It prioritises "early-stage, small-scale, long-term, hard-technology" equity investment across new materials, advanced manufacturing, and next-generation information technology, targeting industry-leading tech firms, "little giant" specialised-and-innovative enterprises, technology-transfer projects, and upstream/downstream suppliers in central-SOE industrial chains.

Spain's state development bank, Instituto de Crédito Oficial (ICO), granted a loan of up to EUR 65 million directly to ITP Aero, a Zamudio (Vizcaya)-headquartered global leader in aircraft-engine design, development, manufacturing and maintenance. The facility partially finances ITP Aero's 2025-2033 Investment Plan, which is centred on decarbonisation R&D — electrification, hydrogen propulsion, and sustainable aviation fuel (SAF) — as the company targets net-zero climate impact by 2050. ICO states ITP Aero engines power 40% of all annual commercial aircraft engine deliveries and that over 5,000 of its engines are currently in service.

The Diet enacted on 31 May 2024 (promulgated 7 June 2024 as Law No. 45 of 2024) the "Act on Partially Amending the Act on Strengthening Industrial Competitiveness and Other Acts to Create New Business and Encourage Investment in Industries". The provisions establishing Japan's first US IRA-style production-and-sales-linked tax credit took effect 2 September 2024 per METI's press release of the same date. Eligible enterprises with a METI-certified business plan can claim tax deductions tied to domestic production-and-sales volume of five designated strategic products: electric vehicles, green steel, green chemicals, sustainable aviation fuel (SAF), and semiconductors. The credit is available for ten years from certification (certifications must be issued by 31 March 2027), with an annual cap of 40% of corporate tax liability (20% for semiconductors) and a 4-year carry-forward. Eligibility is conditional on meeting wage-growth or capital-investment thresholds in each fiscal year.