German Federal Minister of Economics Robert Habeck has unveiled a new initiative aimed at accelerating the green transformation of the industrial sector. The program will allocate approximately €3.3 billion by 2030 to support projects that adopt climate-friendly production techniques and advance underground CO₂ storage solutions.
Under the new "Federal Funding for Industry and Climate Protection" scheme, companies can apply for grants if their projects involve budgets of €500,000 or more, with large firms eligible if their projects exceed €1 million. For major projects valued at €15 million or more, federal states will contribute 30% of the funding.
The program, financed by the Climate and Transformation Fund (KTF), is designed to benefit energy-intensive industries such as steel, glass, ceramics, and cement, among others. It also includes support for CO₂ capture and storage, a method that has faced criticism from environmental groups. The initiative aims to bolster small and medium-sized enterprises and assist them in transitioning to low-CO₂ processes.
Starting in September, companies can submit their proposals for funding, with annual competitions planned. Habeck emphasized that the funding complements existing climate protection agreements and supports Germany's goal of achieving climate neutrality by 2045. However, companies must choose between this new funding and existing subsidies, as they cannot be combined.
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