On Friday, the German government declared its intention to finance initiatives aimed at making the industry more climate-friendly, including subterranean carbon dioxide storage at offshore locations, with an estimated budget of 3.3 billion euros ($3.7 billion).
With the largest economy in Europe and a large concentration of energy-intensive industries, Germany plans to achieve “net zero” emissions by 2045. The new initiative primarily targets medium-sized businesses.
The program, which includes projects to switch to more environmentally friendly production, is scheduled to be introduced by the Economy Ministry next month.
Following that, businesses will have three months to submit projects for potential funding. The program is expected to commence next year and last until 2030.
Laptops 1000In February, the administration declared its intention to activate carbon capture and storage, advancing a much-discussed technology in recognition of the limited time remaining to address climate change.
Critics assert that while CCS has been less successful than alternatives like solar and wind power in decarbonizing the energy sector, it is still unproven at a large scale.
Carbon storage plans will only be funded in cases of CO2 emissions that are “hard to avoid,” according to the Economy Ministry, which Vice Chancellor Robert Habeck, a member of the environmentalist Green party, heads.
Investments in the cement, glass, and ceramic industries are among those that may be eligible for backing.
A program called “carbon contracts for difference” has already been introduced by the government to aid with the transition to more environmentally friendly production techniques.
