Germany has secured European Union approval for a €5 billion ($5.8 billion) state aid scheme aimed at accelerating industrial decarbonization. The program will help heavy industries such as steel, cement, chemicals, and glass replace fossil-fuel-based production methods with low-carbon technologies including electrification, hydrogen, and carbon capture solutions.
The funding will be distributed through 15-year carbon contracts for difference, linking support payments to carbon and energy market conditions. Projects selected through competitive bidding must cut emissions by at least 50% within four years and achieve an 85% reduction by the end of the contract period, ensuring substantial long-term climate impact.