Climate protection contracts are intended to initiate climate-friendly production processes in energy-intensive industries and, if necessary, compensate for additional costs.
The preparatory procedure for climate protection contracts of the Federal Ministry of Economics and Climate Protection of the Federal Republic of Germany, BMWK, originally announced for the month of May, now officially starts. The announcement to this effect was published in the Federal Gazette on June 06, 2023. The preparatory procedure lasts two months, during which information is collected that is necessary for the effective and needs-based design of the subsequent bidding procedure. Companies wishing to submit a bid in the first bidding procedure (still planned in 2023) must participate in the preparatory procedure.
Climate protection contracts are intended to trigger climate-friendly production processes in energy-intensive industrial sectors, for example in the steel, cement, paper or glass industries. Where climate-friendly production processes cannot currently be operated competitively, they compensate for the additional costs compared with conventional processes.
The BMWK intends to conclude climate protection contracts in the mid double-digit billion range. The majority of the money is to be made available to cover unexpected price fluctuations. Companies wishing to receive funding initially enter into a bidding war in which the best and, in particular, most favorable bidder wins.
Climate protection contracts make a significant contribution to ensuring that climate-friendly technologies become marketable and can survive in the long term without government subsidies. The subsidized plants will produce climate-friendly products, which can create green lead markets. The funded projects will also generate know-how in the financing, construction and operation of innovative plants, which offers additional potential for Germany as a business location and for climate protection worldwide. They will also provide a strong impetus for the development of hydrogen infrastructure in Germany and Europe. At the same time, the transformation projects are already saving large quantities of greenhouse gases, thus making an important direct and indirect contribution to Germany’s ability to achieve its climate targets by 2045.
The funding guideline is subject to ongoing reviews of state aid and subsidy law and budget negotiations.
Dr. Michael Walther
Team Leader Project Management