BERLIN (AP) — The German government announced on Friday a plan to invest approximately €3.3 billion ($3.7 billion) in projects aimed at making industry more climate-friendly, including carbon dioxide storage at offshore sites.
Germany, Europe’s largest economy and home to many energy-intensive industries, aims to achieve “net zero” emissions by 2045. The new program will primarily support medium-sized companies and is expected to launch next month. Companies will have three months to submit their projects for consideration, with the program running until 2030 and featuring annual bidding rounds.
In February, the government revealed plans to advance carbon capture and storage (CCS) technology, recognizing the urgency of combating climate change. Critics argue that CCS is unproven at scale and less effective compared to renewable energy sources like solar and wind.
The Economy Ministry, led by Vice Chancellor Robert Habeck from the Green party, stated that funding for carbon storage will be restricted to CO2 emissions that are “hard to avoid,” potentially benefiting sectors such as cement, glass, and ceramics.
Additionally, the government has introduced “carbon contracts for difference” to support the transition to more climate-friendly production methods.
