The European Commission on Monday approved a €5 billion ($5.4 billion) German government initiative to assist businesses in decarbonizing their production processes.
“The scheme approved today will support ambitious projects that will significantly reduce the greenhouse gas emissions of industrial production processes in Germany,” said Teresa Ribera, the commission’s vice president for a clear, just and competitive transition.
“It will contribute to the EU’s objective of reaching climate neutrality by 2050, while ensuring that any potential competition distortions are kept to the minimum,” Ribera added.
The funding is dedicated to helping German companies reduce carbon dioxide (CO2) emissions in their production processes, for example through electrification, the use of hydrogen, carbon capture and energy efficiency measures.
Businesses subject to the EU Emissions Trading System – for example in the chemistry, construction and food sectors – can benefit from the scheme.
The projects supported under the initiative must achieve a 60% reduction in emissions within three years and a drop of 90% by the end of the project.
(dpa)