Germany’s Federal Ministry for Economic Affairs and Energy has officially launched its 2026 carbon contracts for difference (CCFD) auction, allocating up to €5 billion to support industrial decarbonization projects across the country.
The funding program targets energy-intensive industries including:
- Steel
- Chemicals
- Cement
- Glass
- Paper
- Ceramics
Under the scheme, companies adopting low-carbon production technologies can receive financial support through 15-year contracts, designed to offset the additional costs of transitioning away from conventional high-emission production methods.
In response to industry feedback from the first auction round in 2024, the government has introduced a more flexible framework.
Key changes include:
- Required emissions reduction lowered to 50% after four years (previously 60% after three years)
- Final contract emissions reduction target adjusted to 85% (previously 90%)
The updated framework also expands eligibility to include:
- Carbon capture, utilization, and storage (CCUS) projects
- Industrial steam and process heat projects
Applications for the 2026 auction round must be submitted by September 7, 2026.
VietnamSteel by Hoa Sen Group
