Germany has launched a EUR 6 billion program to fund industrial emissions cuts, which is a policy change by first formally including carbon capture and storage (CCS) in national climate contracts.

Announced by Katherina Reiche, the Federal Minister for Economic Affairs and Energy, this initiative targets hard-to-abate sectors such as steel, cement, glass, and chemicals. The government will offer 15-year climate protection contracts to reimburse companies for the higher costs of cleaner production.

Companies have until December 1, 2025, to submit proposals. Projects will be selected via a reverse auction, favoring proposals that provide the greatest emissions reductions at the lowest public expense.

The program awaits approval from the German Bundestag and the European Commission, and the first auction is expected in mid-2026.

This program integrates CCS into Germany’s net-zero strategy, balancing innovation, fiscal support, and industrial competitiveness.