Germany opens first €4bn bidding round for Carbon Contracts for Difference

Germany’s government has launched the first €4bn ($4.4bn) bidding round of its estimated €50bn Carbon Contracts for Difference (CCfD) programme, which will see heavy industry paid to switch to low-carbon processes — including those that use green hydrogen — instead of polluting fossil fuels.

Dubbed “climate protection contracts” by the federal ministry for economic affairs and climate protection (BMWK), the CCfDs offer payments for 15 years to industrial players such as steel or chemicals producers to switch to using green H2 (for example in iron-making for steel, or as a chemical feedstock), carbon capture and storage or other low-emissions methods of production.

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