This article has been reviewed according to Science X's editorial process and policies. Editors have highlighted the following attributes while ensuring the content's credibility:

fact-checked

reputable news agency

proofread

Germany launches major subsidy scheme for greener industry

Companies in energy-intensive sectors like glass, steel and paper-making can submit proposals for green technology projects that will slash their emissions
Companies in energy-intensive sectors like glass, steel and paper-making can submit proposals for green technology projects that will slash their emissions.

Germany on Tuesday launched what it called "an innovative" multi-billion-euro subsidy scheme aimed at turbocharging investments that will make industrial production in Europe's top economy more climate-friendly.

Energy Minister Robert Habeck said four billion euros ($4.4 billion) would be up for grabs in the first round of the program, with companies in energy-intensive sectors like glass, steel and paper-making invited to submit proposals for green technology projects that will slash their emissions.

"We are the first industrial country to introduce this," Habeck told a press conference, calling the scheme "an innovative, new instrument" that would cut red tape, boost and help Germany reach its climate targets.

The "climate protection contracts" will run for 15 years, Habeck said, with the government awarding subsidies to those firms that can decarbonize their production processes at the lowest cost.

The government has set aside a "mid-double-digit" billion euro amount for the program overall, Habeck said. The next round of bidding will open in the autumn for 19 billion euros in subsidies.

The scheme comes as Germany's crucial manufacturing industry is suffering through a downturn, battered by inflation, weaker global demand and soaring after Russia's war in Ukraine cut off access to cheap gas imports.

"We need this as stimulus for the economy and of course for climate protection," Habeck said.

The scheme is expected to help reduce from industry by 350 million tonnes by 2045, according to the economy ministry.

Germany aims to be carbon neutral by 2045.

Habeck said the program was also "a good answer" to the green incentives offered by the United States' Inflation Reduction Act, which have already prompted some German firms to mull moving production abroad.

"We need production in Germany, I want energy-intensive industries here and I want that production to be climate neutral," he said.

© 2024 AFP

Citation: Germany launches major subsidy scheme for greener industry (2024, March 12) retrieved 18 May 2024 from https://techxplore.com/news/2024-03-germany-major-subsidy-scheme-greener.html
This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no part may be reproduced without the written permission. The content is provided for information purposes only.

Explore further

Germany considers electricity price cap for industry

30 shares

Feedback to editors