Germany has opened a €5 billion bidding process for Carbon Contracts for Difference (CCfDs) to help energy intensive industries decarbonize. The program targets sectors like steel, chemicals, and cement, providing 15 year contracts to cover the extra costs of switching to low emission production technologies. To encourage more participation, the government has relaxed emission reduction targets and expanded eligibility to include carbon capture (CCUS) and industrial heat projects. This competitive auction aims to lower the cost of industrial transition while maintaining global competitiveness for German firms.
