EU Approves €5 Billion Scheme for German Industrial Decarbonization

The European Commission has approved a €5 billion initiative to support German companies in decarbonizing their production processes, aligning with both Germany's climate goals and EU sustainability objectives. This funding will aid industries covered by the EU Emissions Trading Scheme (ETS) in reducing carbon dioxide emissions through technologies such as electrification, hydrogen use, and carbon capture. Projects must demonstrate a 60% reduction in emissions within three years and a 90% reduction by the project's completion. Beneficiaries will be selected through a competitive bidding process based on the lowest aid requested per tonne of avoided CO2 emissions. The financial assistance will be provided via 15-year Climate Protection Contracts, ensuring that support is adjusted according to market price fluctuations. This initiative is part of broader efforts to achieve the EU's climate neutrality goal by 2050.