With nearly 50 billion euros in subsidies, Germany plans to facilitate the transition to climate-neutral technology for heavy industry, specifically energy-intensive manufacturing companies, over the next 15 years, Bloomberg reports.
This plan, which is still awaiting approval from the European Commission, is aimed at companies with at least 10 kilotons of carbon emissions per year, including those in the steel, chemicals, cement, paper, and glass production sectors.
– We are targeting companies that emit the most – said German Minister of Economy Robert Habeck on Monday during a press conference, adding that the German government expects this initiative to reduce carbon emissions by 350 million tons by 2045, which is one-third of total industrial emissions.
Germany plans to cut the other two-thirds of emissions to zero by 2030. However, Germany’s targets are ambitious, and progress remains slow.
Both large and small
For instance, the steel sector in Germany currently accounts for one-third of industrial carbon emissions. Through this initiative, the state would cover the difference in production costs between conventional and ‘green’ steel, and a similar approach would apply to other sectors.
According to available information, subsidies would be distributed through a public auction – companies would submit proposals for the required amount of support, and the lowest bids would receive funding. The auction process will last about two months.
