Saving greenhouse gases is expensive for energy-hungry companies. Now the state is stepping in for some – temporarily.
To switch to more climate-friendly production, companies are now receiving money from a new federal funding instrument worth billions. Economics Minister Robert Habeck signed the first climate protection agreements in Berlin. This means that the state steps in to finance more climate-friendly production processes and covers the additional costs until these processes are cheaper and therefore competitive.
“Fifteen concrete future projects can now be started by companies that are clearly setting the course for decarbonization,” explained the Green politician. The contracts should give companies planning security for their investments. At the same time, it is ensured that the state only pays as much funding as the companies actually need in order to implement decarbonization economically.
The 15 companies will receive a maximum of 2.8 billion euros for converting their production. The money will only be paid out when CO2 has actually been saved. The amount of funding also depends on how the prices of energy sources and certificates develop.
A lot of medium-sized companies applied, said Habeck. Sectors such as the paper, glass, steel and chemical industries are eligible. Similar interest is also evident in a second round of applications that is now starting. The funds are reserved in the climate and transformation fund. In total, around 350 million tons of carbon dioxide are to be avoided over the duration of the funding program until 2045.
Source: Stern
