The Federal Ministry for Economic Affairs and Climate Action has initiated a preliminary process for the 2026 tendering procedure concerning “climate protection contracts” with energy-intensive industries. The Ministry announced the commencement of this process on Monday.
These contracts, known as CO2 difference contracts, aim to secure investments in low-carbon production processes within sectors such as chemicals, cement and glass against price volatility. Another key objective is to accelerate the market introduction of innovative technologies.
The preliminary process now underway involves consultation with industry stakeholders regarding the proposed subsidy rules. Participation in this preliminary phase, concluding December 1, 2025, is a prerequisite for companies wishing to submit bids in the subsequent 2026 tendering procedure, which is anticipated to begin in mid-2025.
A significant development within this preliminary phase is the inclusion of new projects eligible for the auction. For the first time, technologies focused on Carbon Capture and Storage (CCS) and Carbon Capture and Utilization (CCU) are now eligible for support. Compensation will be based on the actual CO2 emission reductions achieved by participating companies.