Germany Launches CO₂ Contracts for Difference to Cut Industry Emissions
The German Federal Ministry for Economic Affairs and Energy has launched a preliminary process for 'climate protection contracts', also known as CO₂ contracts for difference. This initiative, announced on Monday, targets energy-intensive industries such as chemicals and building materials. Companies can participate until December 1, 2025, with the actual tender set for mid-2026.
The ministry aims to secure investments in low-carbon production processes through these contracts. This move is designed to protect companies from price risks while encouraging them to adopt new, cleaner technologies. The pre-procedure, started in October 2025, is a stepping stone towards the 2026 tender. It allows companies in sectors like chemistry, cement, and glass to prepare their bids. The ministry hopes this initiative will accelerate the market introduction of innovative, low-CO₂ technologies.
The German Federal Ministry for Economic Affairs and Energy is actively promoting climate protection through its 'climate protection contracts'. By offering these CO₂ contracts for difference, the ministry is encouraging energy-intensive industries to invest in low-carbon production processes. The preliminary procedure is currently underway, with the final tender expected in mid-2026.
