Germany's 3.3 Billion Euro Initiative for Climate-Friendly Industry

The German government has announced a €3.3 billion program to make industries more climate-friendly by storing carbon dioxide underground at offshore sites. Targeting medium-sized companies, the initiative aims to achieve net-zero emissions by 2045, with a focus on carbon capture and more sustainable production methods.

The German government on Friday announced a new €3.3 billion funding initiative aimed at making industry more climate-friendly. The programme will focus on storing carbon dioxide underground at offshore sites, among other measures.

As Europe's largest economy, Germany is home to numerous energy-intensive industries. The country aims to cut emissions to net-zero by 2045, and this new program is primarily aimed at supporting medium-sized companies. The Economy Ministry plans to launch the initiative next month, with companies given a three-month window to submit their projects for support. The programme is set to run until 2030 with annual bidding rounds.

While the government initially unveiled plans for carbon capture and storage technology in February, opponents argue that it is unproven at scale and less effective than renewable alternatives like solar and wind. The Economy Ministry, led by Vice Chancellor Robert Habeck of the Green party, stated that funding would focus on industries where CO2 emissions are challenging to avoid, such as cement, glass, and ceramics. The government has also introduced 'carbon contracts for difference' to encourage more climate-friendly production methods.

(With inputs from agencies.)