The German government allocates 3,3 billion euros to decarbonize the industry, reports Euronews. The money will fund projects to transform the economy with the most carbon-intensive industries into a more climate-friendly one. The plan also includes the technology to store carbon underground in offshore sites.
The new program is aimed mostly at medium-sized companies. Germany, which has Europe's largest economy and many energy-intensive industries, aims to reduce its emissions to zero by 2045.
Carbon capture and storage remains a controversial issue
The German government announced back in February that it plans to allow carbon to be stored underground at offshore sites. At the time, Green Party member and Vice-Chancellor Robert Habeck said the proposed "carbon management strategy" still needed to be turned into detailed legislation. Today's announcements appear to solidify the strategy.
Opponents of the technology argue that so-called carbon capture and storage (CCS) has not been proven at scale and is less effective than alternatives such as solar and wind for decarbonizing the energy sector.
Euronews recalls that in January, the EU supported carbon capture with a document as necessary to achieve the EU's goal of eliminating net greenhouse gas emissions. The document suggests the Commission is considering pledging a range of policy and financial support for the controversial technique.
How will the new program work?
Germany's economy ministry plans to launch the program next month, which covers projects to switch to more climate-friendly production. The companies will then have three months to present their projects.
The program is set to run until 2030. The government has already launched a "carbon contracts for difference" initiative, also designed to help shift to greener production methods.