EUR 5 billion German State aid scheme for decarbonisation of energy-intensive industry approved
The measure will fund projects involving major technological changes, including electrification, hydrogen, carbon capture and storage (CCS), carbon capture and use (CCU), biomethane, and heat recovery solutions.
Aid will be granted through competitive bidding procedures and take the form of two-way carbon contracts for difference over a period of 15 years. Eligible projects must achieve significant CO2 emission reductions, notably at least 50% within four years and 85% by the end of the contract period. The scheme covers sectors subject to the EU Emissions Trading System (ETS), including steel, cement, chemicals, paper, glass and ceramics.
The Commission approved the scheme under the Guidelines on State aid for climate, environmental protection and energy (‘CEEAG’), finding it necessary and proportionate to facilitate industrial decarbonisation.
For more information, see the Commission’s PR.