The European Commission has approved a 5 billion euro funding program to help German industrial sectors transition to low carbon operations. The scheme targets heavy industries like chemicals, metals, and ceramics, utilizing two way contracts for difference to bridge the cost gap for green hydrogen and carbon capture projects. To qualify for funding, projects must demonstrate significant emissions reductions, aiming for at least 50 percent within four years and 85 percent over a 15 year contract. This revised framework replaces an earlier version with stricter timelines, providing a more pragmatic path for industrial decarbonisation under EU state aid rules.
