中文
Germany is launching a programme that will make available tens of billions of euros for firms facing substantial energy costs, in a bid to help its challenged industrial sector fund a shift towards carbon-neutral production techniques.
European industry is facing pressure due to high costs for raw materials, energy and labour, while other regions, most notably the US, are luring companies away from the continent by offering lavish subsides.
The so-called climate protection contracts are a major pillar of Germany’s response to these challenges, hoping financial support can help makers of steel, cement, paper, and chemicals to decarbonise their production.
As part of the process, companies will be able to apply for support payments, which the government said will be a mid double-digit billion euro amount overall over a 15-year period, the economy ministry said on Monday.
“We are in a period of prolonged recession, in an extremely challenging period economically,” Economy Minister Robert Habeck told journalists after outlining details of the scheme.
He said that while other parts of the world, ranging from the US to Asia, were offering investment incentives, Germany was subject to stricter requirements when it comes to budget and keeping debt under control.
“Nevertheless, it can’t be right to not provide investment incentives and investment impulses in this phase. We’re rather observing a weakness in investment and in innovation in Europe and in Germany.”
Companies have two months to express interest in the scheme, aimed at fulfilling Germany’s pledge to become carbon neutral by 2045, before an auction process starts, Habeck said, adding that lowest bids would win.
Firms emitting 10 kilotonnes of CO2 or more a year would be eligible for the auction process, effectively opening it up for the thousands of mid-sized companies active in Europe’s top economy.