The European Commission has given the green light to a EUR 4 billion national plan designed to aid German companies in the EU Emissions Trading System to decarbonize their production processes. This substantial investment, partially funded through the EU Recovery and Resilience Facility, aims to support carbon-intensive industries in reducing their greenhouse gas emissions during production.

Industries such as chemicals, metals, glass, and paper, subject to the EU Emissions Trading System, will be eligible to participate in this program, which seeks to foster the adoption of cleaner technologies and processes.

Under this initiative, projects encompassing a range of decarbonization efforts will be supported, including the construction of electrically powered melting pots for glass production and the transition from traditional steel manufacturing methods to hydrogen-powered factories through direct reduction.

Additionally, Germany can seek national assistance over a 15-year period to cover the operational costs of decarbonization projects, with a particular emphasis on clean hydrogen as a substitute for coal.

The German government has pledged its support for the initiative, emphasizing the need for assistance to achieve genuine reductions in carbon dioxide emissions rather than merely shifting emissions from one sector to another.

This comprehensive approach underscores the commitment to sustainability and climate action, positioning Germany as a leader in the transition to cleaner, greener industrial practices within the EU.