Germany’s vice chancellor has launched a 4 billion euro program to help heavy industries transition to more climate-friendly production. The goal is to cut greenhouse gas emissions to net zero by 2045, with the government offering carbon contracts for difference to companies in sectors such as paper, glass, steel, and chemicals. This support is intended to offset the costs of adopting eco-friendly production processes. Vice Chancellor Robert Habeck emphasized the efficiency of this system compared to existing support processes, allowing companies to plan with fixed, green energy prices over 15 years.
Companies have four months to bid for the first round of support, with a max cap of 1 billion euros per bidder. The aim is to encourage the adoption of new technologies by making the transition economically viable for companies. The Federation of German Industries and Greenpeace Germany have expressed support for the initiative, highlighting the necessity of state support for the rapid transition to climate neutrality. However, Greenpeace cautioned that the success of the program depends on supporting companies that use modern technology and clean energy, rather than perpetuating reliance on outdated, polluting methods.
The government plans a second round of bidding for up to 19 billion euros by the end of the year. The initiative is seen as a crucial step in Germany’s efforts to reduce emissions and meet its climate goals.
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