Germany has unveiled an EUR 6 billion funding initiative that
expands climate protection contracts to include carbon
capture and storage (CCS), adjusts renewable energy deployment, and
introduces regulatory relief for energy-heavy industries, including
in the fields of chemicals, pulp and paper, steel, cement and lime,
as well as ceramics, glass, and gypsum.
Starting in 2026, CCS and carbon capture and utilization (CCU)
projects will be eligible for state-backed 15-year climate
contracts under a reverse-auction model. The preparatory phase for
the 2026 bidding process launched on October 6, 2025, with
participation required by December 1, 2025, to qualify for the auction,
expected in mid-2026. Companies will bid based on CO₂
abatement costs, with support covering the gap between low-carbon
and conventional production methods, encouraging competitiveness
amid volatile energy and carbon prices.