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Germany has launched its 2026 subsidy auction for carbon contracts for difference, allocating up to €5 billion to support industrial decarbonization projects. The scheme aims to help energy-intensive sectors such as steel, chemicals, cement, glass, paper and ceramics shift toward low-emission production technologies.
Under the program, selected companies will receive long-term support to cover the higher cost of cleaner production compared with conventional high-emission methods. The contracts will run for 15 years and consider both carbon prices and energy market developments.
Germany has also made the framework more flexible, reducing interim and final emission-cut requirements compared with earlier rules. Projects using carbon capture, utilization and storage, along with industrial steam and process heat solutions, are also eligible. Bids for the 2026 round must be submitted by September 7, 2026.
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