Germany launches green subsidies for industry

(Reuters, 12 Mar 2024) Germany on Tuesday launched a bidding process for subsidies to support energy-intensive firms switching to green production in a 4 billion euros ($4.37 billion) funding round, the economy ministry said on Tuesday.

As part of Germany's ambitions to become climate-neutral by 2045, Berlin plans to award companies in sectors such as steel, glass, paper and chemicals 15-year subsidies in return for reducing carbon emissions in production. The European Commission has approved the instrument where companies will be selected through a bidding process while competing over cutting emissions at the lowest cost.

Through the so-called climate protection contracts, companies will be compensated for the extra costs of green production in industries where climate-friendly production processes cannot currently operate competitively. "Today is a good day for Germany as an industrial location, for climate protection and for sustainable jobs in our country," said Economy Minister Robert Habeck.

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Reuters, 12 Mar 2024: Germany launches green subsidies for industry