Major Funding Boost Supports Cleaner Manufacturing

Germany is providing up to €5 billion to help heavy industries cut carbon emissions with cleaner technology, supporting long-term industrial jobs and climate goals.

“The goal is to help these factories stay in Germany and meet climate goals,” said the German economy ministry, outlining plans to support lower-emission production across major industries.

The funding will be delivered through 15-year carbon contracts for difference, helping industries such as steel, cement and chemicals cover the higher costs of cleaner manufacturing. Updated rules now allow support for carbon capture and storage projects and cleaner industrial heating systems, while giving companies more time and flexibility to reduce emissions. Factories must still cut emissions by at least 85 per cent by the programme’s final year. Applications are open until September 2026 for facilities covered by the European Union emissions trading system.