The Federal Ministry of Economics has awarded the first climate protection contracts. Now 15 industrial companies can start their transformation projects. The funding of 2.8 billion euros over 15 years aims to accelerate the transformation to CO₂-neutral production. Five of the transformation projects involve the use of hydrogen.
Federal Minister of Economics Robert Habeck handed over the first climate protection contracts to companies on October 15. Of the 17 companies that submitted bids, 15 received approval. Five of the funded companies plan to use hydrogen in their decarbonization projects. The projects span various industries, focusing on the glass and ceramics, paper and pulp, and chemical sectors.
Now companies can begin implementing their plans and converting their production to lower-emission processes – a crucial step toward climate neutrality, which must be achieved by 2045 according to the Federal Climate Protection Act.
The total funding amounts to a maximum of 2.8 billion euros over a period of 15 years. The actual disbursement occurs retrospectively and is based on achieved greenhouse gas reductions. The funding level adapts dynamically to energy and CO₂ price developments. The funded projects aim for total savings of up to 17 million tonnes of CO₂ equivalents over the contract period.
Climate Protection Contracts to Enable Planning Security
Through the climate protection contracts, the federal government aims to support industrial companies in building and operating climate-friendly production facilities that would not yet be economically viable otherwise. Companies are protected against price risks (such as hydrogen or CO₂ certificates), and the government bridges the cost gap between using green hydrogen and fossil fuels.
This is intended to create secure framework conditions and provide companies with planning security. Additionally, industrial companies should initiate the urgently needed market transformation through their transformation projects.
Five Projects Use Hydrogen
Companies planning to use hydrogen in their decarbonization projects include:
- Ziegel- und Klinkerwerke Janinhoff GmbH & Co. KG
- Schmiedewerke Gröditz GmbH
- Papierfabrik Adolf Jass GmbH & Co. KG
Climate Protection Contracts Use Auction Process
The selected companies had previously successfully competed for state funding of their transformation projects. The funding program uses an innovative auction process. Companies submit bids that must both enable the implementation of new technologies and be competitive. The first bidding process started on March 12, 2024, with a four-month submission period.
Parallel to evaluating the first round, the preparatory process for the second round of climate protection contracts began on July 29, 2024. Companies could submit project proposals until September 30, 2024. The start of the second bidding round is planned for this year. For the transformation projects that prevail in this second round of competition, the Federal Ministry for Economic Affairs and Climate Protection (BMWK) plans to provide a low double-digit billion euro amount.
