The European Commission (EC) has announced that it has approved German state aid worth €5 billion to help companies operating in industries such as steel, iron and cement that are subject to the European Union (EU) Emission Trading Scheme (ETS) decarbonize their production processes.
Accordingly, the funding aims to support companies in reducing their carbon emissions through technologies such as electrification, hydrogen, carbon capture, utilization and storage (CCUS), and through energy efficiency measures. Also, the aid will focus on projects such as the replacement of fuel transition and traditional steel production processes by hydrogen direct reduction.
The beneficiaries will need to cut their emissions by 60 percent in three years and by 90 percent by the end of the selected projects. These projects will be selected through open competitive bidding.