Germany launches bidding for carbon contracts to support climate-friendly industrial production

By GEIR MOULSON
Associated Press

BERLIN (AP) — Germany’s vice chancellor has launched a program initially worth up to 4 billion euros to help heavy industry shift to more climate-friendly production over a 15-year period. Germany, which is home to many energy-intensive industries as Europe’s biggest economy, aims to cut its greenhouse gas emissions to net zero by 2045. The government says Germany is the first in the European Union to launch the so-called “carbon contracts for difference.” Companies have four months to bid for support under the contracts, which are supposed to compensate for the extra costs of climate-friendly production processes where they otherwise would not be competitive. Support will be capped at 1 billion euros per bidder in an effort to accommodate medium-sized companies.