The German government has unveiled a €6 billion federal funding initiative to accelerate decarbonization in energy-intensive industries, including steel, chemicals, cement, and glass, according to Reuters.
For the first time, carbon capture and storage (CCS) will be eligible under Germany’s climate protection contracts, signaling a major policy shift.
Companies have until December 1 to submit project proposals. The first competitive auction is planned for mid-2026, subject to budget and EU state aid clearance.
Under the program:
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15-year contracts will subsidize the extra costs of green production.
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CCS will be supported to capture and store emissions at the source.
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Projects must meet binding emissions reduction milestones.
Industry associations have welcomed the flexibility and inclusion of CCS, viewing it as key to balancing climate goals with industrial competitiveness.
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