Germany is taking a bold step towards a greener future by launching a multi-billion-euro subsidy scheme aimed at transforming its industrial sector. Announced on Tuesday, the program allocates €4 billion in its first round to support companies in energy-intensive industries such as glass, steel, and paper-making.
Energy Minister Robert Habeck described the initiative as \"innovative\" and the first of its kind among industrial nations. The \"climate protection contracts\" will span 15 years, providing substantial funding to firms that can decarbonize their production processes cost-effectively.
\"We are the first industrial country to introduce this,\" Habeck stated, emphasizing that the scheme is designed to cut red tape, enhance technological innovation, and help Germany meet its ambitious climate targets.
The government has earmarked a \"mid-double-digit\" billion euro total for the program, with the next round of bidding scheduled for autumn, which will see an additional €19 billion in subsidies.
This initiative arrives at a critical time for Germany's manufacturing sector, which is currently grappling with inflation, reduced global demand, and soaring energy costs following the Russia-Ukraine conflict. Habeck underscored the dual role of the subsidy as both economic stimulus and a catalyst for climate protection.
Projected to reduce carbon emissions from industry by 350 million tonnes by 2045, the scheme aligns with Germany's goal of achieving carbon neutrality by the same year. Furthermore, the subsidy program serves as a strategic countermeasure to the United States' Inflation Reduction Act, which has already led some German firms to consider relocating production abroad.
\"We need production in Germany, I want energy-intensive industries here and I want that production to be climate neutral,\" Habeck affirmed, signaling a strong commitment to maintaining domestic manufacturing prowess while advancing environmental sustainability.
Reference(s):
cgtn.com
