Climate Protection Agreements (Contracts for Difference)

Laws and Policies

CCLW

CCLW national policies

Funding Guidelines on the Decarbonisation of Industry

Guide to the Funding Programme on the Decarbonisation of Industry

Information on the Funding Programme on the Decarbonisation of Industry

Approved

Contracts for difference funding announced

Through this programme, placed under the support of the Federal Ministry of Economics and Climate Protection (BMWK), the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) focuses on energy-intensive industries that aim to reduce process-related greenhouse gas emissions that are difficult or impossible to avoid using the current state of the art, as far as possible and permanently. The funded projects make a substantial contribution on the way to greenhouse gas neutrality, combined with a clear perspective for the medium to long-term, complete replacement of fossil fuels and raw materials. The funded projects have a high innovative and demonstration character and should be transferrable to other companies as models. The directive aims to reduce annual greenhouse gas emissions from energy-intensive industries by 2.5 million tonnes of CO2 equivalents in 2030. As part of the decarbonisation of industry programme, the Federal Government will expand the pilot scheme for carbon contracts for difference. Carbon contracts help mitigate the higher operating costs of low- and zero-emission processes. The Chemistry4Climate platform will also be set up as part of the programme. In June 2023, the government announced approximately €50 billion would be made available for carbon contracts for difference and invited firms to make bids for funding to decarbonise their operations.

Funding programme ‘Decarbonisation of Industry’