Germany plans 'climate CfDs' to support industry's green ... - Recharge
Germany plans 'climate CfDs' to support industry's green transformation | Recharge
Industrial polluters in Germany could be in line to receive vast subsidies to switch to decarbonising technologies — including those requiring hydrogen, such as green steel made from renewable power — under new Carbon Contracts for Difference (CCfD) plans unveiled by the country's economics and climate ministry.
The proposed CCfD scheme, dubbed 'climate protection contracts' by the ministry on Monday, will have a budget running to the “mid double-digit billion [euro] range”.
This means that industries such as steel manufacturing can bid for a share of a pot of somewhere dozens of billions of euros (dollars) to switch to more expensive hydrogen-based technologies such as direct reduced iron (DRI), a type of 'sponge iron' made with H2, to replace the current fossil fuel-based method of iron production mostly used today.
Related Knowledge Center: Climate legislation
The federal government and states are in the process of implementing two laws — the Infrastructure Investment and Jobs Act and the Inflation Reduction Act — an investment of more than a trillion dollars to address climate change.