On 6 October, the Bundesministerium für Wirtschaft und Energie (BMWE) launched the preliminary procedure for the next round of CO₂ difference contracts. The aim is to enable companies in energy-intensive industries to switch to more climate-friendly production processes. The actual award is planned for 2026.
The funding instrument aims to promote investment in low-carbon technologies, particularly in the chemical, steel, cement, paper, glass and other industries. Companies have until 1 December 2025 to comment on the planned conditions and register new projects. Compared to the first round in 2024, the programme has been made more flexible and SME-friendly. For the first time, CO₂ capture and utilisation (CCS and CCU) processes are also eligible for funding. Previous participants can easily take part again. The details are published today in the Federal Gazette.
The actual auction process is scheduled to begin in mid-2026 and will use competitive bidding to ensure that only the most economical projects receive funding. The CO₂ difference contracts will compensate for price fluctuations in CO₂ and energy as well as the additional costs of climate-friendly processes over a period of 15 years. This will give companies planning security and incentives to invest in new technologies.
Participants can decide for themselves whether to use electricity, hydrogen or biomass. The only requirement is that CO₂ reduction increases significantly over the term – from at least
60 % in the third year to 90 % at the end. Small and medium-sized enterprises are also eligible. The market-based model is already being used successfully in several European countries and is still subject to budgetary and EU approval.
Further information and documents on the 2026 preliminary procedure: klimaschutzvertraege.info
