Germany announces the Klimaschutzverträge (Carbon Contracts for Difference) for the energy-intensive industry

Germany aims to become climate neutral by 2045, but this requires completely new and often expensive renewable energy production methods. To accelerate the transition to being climate neutral, Germany announced a new grant, the ‘Klimaschutzverträge’ (Carbon Contracts for Difference CCfDs in English),  to compensate energy-intensive companies in Germany for the extra costs to convert their production process to a CO2-neutral production process.

Who is eligible for the Klimaschutzverträge (Carbon Contracts for Difference)?

The Carbon Contracts for Difference supports industrial companies in investing in climate-friendly production facilities that would otherwise not be profitable. For example companies in the steel, cement, paper or glass industry. German Minister for Climate and Economy Robert Habeck announced that the following companies are eligible for the grant:

  • Large industrial heavyweights;
  • Small and medium-sized enterprises (SMEs) that emit at least 10,000 tonnes of CO2 per year.

What does the grant offer?

The German government has set aside a billion-euro amount to fund the Klimaschutzverträge. The Klimaschutzverträge has a bidding procedure. Companies can present their project and the most cost-effective plans will be awarded a 15-year climate protection grant contract. This contract provides these companies with the financial stability that they need to transition to climate-neutral production methods. The grant stimulates not only a sustainable and climate-neutral future, but it also encourages the development of new technologies and innovations.

Apply for the Klimaschutzverträge in 2023

In the preparatory procedure, an approximately 20-page application must first be prepared with various questions about the current and planned production process. This document must show that the new method can save at least 90 % of the current CO2 emissions. Companies have until the beginning of August to apply in the preparatory procedure for the bidding process.

The Klimaschutzverträge and the SDE++ in the Netherlands

This bidding procedure of the Klimaschutzverträge is completely new in Germany. There is only one grant programme in the EU that is using the same operating mechanism, the SDE++ in the Netherlands. Both programmes focus on reducing greenhouse emissions in a cost-efficient way.

Hezelburcht offers optimal grant support

Hezelburcht is very experienced in applying for the SDE++, and we are looking forward to supporting our clients in applying for the Klimaschutzverträge. Do you have questions about the grant Germany has announced? Our specialists are happy to talk to you. Contact us for an introductory meeting!

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