Energy-intensive companies now have the opportunity to register for the future bidding procedure of the Climate protection contracts to apply. They can submit their applications for the preparatory procedure within two months. This is the only requirement for participation in the first bidding procedure. With a later award, companies that currently emit at least 10 kilotons of CO₂ annually will receive significant federal funding for their CO₂ reduction projects.
Cost compensation through climate protection contracts
If a company is awarded a climate protection contract, the additional costs required to switch to renewable energies are reimbursed in the form of state-subsidized compensation payments. The program is not only aimed at large companies in the Steel, chemical, cement or glass industrybut explicit also to the middle class. It supports the switch to climate-friendly production within the next 15 years. However, if climate-neutral production becomes cheaper than production using fossil fuels, the payment is reversed. In this case, previously subsidized companies have to pay back their additional income.
The funding that has now been made available comes from the BEHG trading with CO₂ certificates. These also serve to secure companies against energy price developments. Interested parties must now submit their climate neutrality project to the Federal Ministry for Economic Affairs and Climate Action register. Once they quantify the respective costs, they can submit the application. In the second step, which is to take place later this year, the most favorable bids will receive climate protection contracts until the funds released so far are used up. A „mid-double-digit billion amount“ has been allocated for this purpose, explained Federal Minister for Economic Affairs and Climate Robert Habeck.
Further development of climate protection contracts for companies necessary
Overall, the billion-euro package is intended to promote new climate-friendly production methods, the introduction of which has so far been costly and risky for companies. The German government hopes that this will give a further boost to investment in climate innovations, from which the entire industry can benefit in the medium and long term.
In principle, the entire German climate protection agreement program has already been coordinated with the EU. Only the details still need to be worked out so that there is no distortion of competition between European companies. So far, only the Netherlands has initiated a similar support program. The offer of climate protection contracts is another important building block for supporting energy-intensive companies within the framework of the Decisions of the European Union from April 2023.