Germany: Economy Minister Katherina Reiche has announced a €6bn industrial decarbonisation initiative that, for the first time, includes carbon capture and storage (CCS) technologies within the country’s climate protection contracts. The programme targets energy-intensive industries such as cement, as Germany navigates stringent climate targets amid concerns over industrial competitiveness. Companies have until 1 December 2025 to register projects for next year’s bidding round, which is scheduled to begin in mid-2026, pending parliamentary budget approval and EU state aid clearance, according to Reuters.
Under 15-year contracts, the government will subsidise part of the cost for companies transitioning to low-carbon production, protecting them from energy and carbon price volatility. Contracts will be awarded through competitive auctions, prioritising projects with the lowest subsidy per tonne of CO₂ saved, alongside binding emission-reduction milestones. Industry groups have welcomed the inclusion of CCS and the flexible contract design, describing the programme as a pragmatic step toward reconciling climate objectives with the economic pressures facing German industry.
