Germany’s Ministry of Economic Affairs and Climate Action has launched a new funding programme that aims to help the German industrial sector shift towards decarbonation and carbon-neutral production techniques. The programme will allocate total funding of about €50bn to industrial companies facing substantial energy costs.
The programme, named climate protection contracts, is a important staple of Germany's response to challenges like high costs for raw materials, energy and labour. Germany hopes that this financial support can help makers of steel, cement, paper, and chemicals to decarbonise their production. Companies will thus be able to apply for support payments over a 15-year period. Starting from 6 June 2023, the firms will have two months to express interest in the scheme. Subsequently, an auction process will start for the granting of the funding.
The programme is aimed at helping Germany attain its pledge of reaching carbon neutrality by 2045.
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