Englishen
20 July 2023

1. What are Climate Protection Contracts?

Climate Protection Contracts are a form of government funding aimed at assisting companies in reducing their greenhouse gas emissions. These contracts create incentives for the adoption of climate-friendly technologies and sustainable production processes.

2. How do Climate Protection Contracts work?

The core mechanism of Climate Protection Contracts involves companies submitting bids stating the amount of funding they require to save one tonne of CO2. These bids are determined through an auction process. Companies with the most economically viable offers are awarded the contracts. The companies receive funding based on a fixed contract price per ton of CO2 saved, which is dynamically adjusted according to various factors such as the emissions trading price or the price of energy carriers.

3. Which companies are suitable for Climate Protection Contracts?

Climate Protection Contracts primarily target companies in emissions-intensive sectors such as steel, cement, paper, or glass, which contribute significantly to greenhouse gas emissions. The funding program has been expanded to allow small and medium-sized enterprises to benefit from Climate Protection Contracts as well. The entry threshold has been lowered to 10 kT CO2 equivalent, which must be saved by the project. Additionally, companies are allowed to form consortia to implement projects together with other partners.

4. How large is the available funding amount?

The available funding amount for Climate Protection Contracts is impressive. The Federal Ministry for Economic Affairs and Climate Action provides a funding pool with a total amount in the mid-double-digit billion range. This financial support enables the industry to implement their sustainable projects and drive the transition towards climate-friendly production. With this considerable funding amount, it is evident that the federal government is sending a strong signal for climate protection and supporting companies in their efforts to build a sustainable future.

5. What are the benefits for companies through Climate Protection Contracts?

Companies participating in Climate Protection Contracts receive financial support to implement their climate-friendly investments. By mitigating price risks and compensating for additional costs, Climate Protection Contracts facilitate the transition to sustainable production processes. Moreover, these contracts provide companies with planning security and enable long-term investments in transformative technologies.

6. Which projects are supported by Climate Protection Contracts?

Climate Protection Contracts support projects aimed at reducing greenhouse gas emissions and deploying innovative technologies for climate-friendly production. This includes the expansion of renewable energies, the utilization of hydrogen as an energy carrier, and the implementation of energy-efficient production methods.

7. What is the duration of Climate Protection Contracts?

Climate Protection Contracts have a standard duration of 15 years, providing companies with planning security and sufficient time to implement their sustainable projects. The extended duration also allows private investors to invest in climate-friendly facilities alongside government support.

8. What are the financial benefits of Climate Protection Contracts?

Through Climate Protection Contracts, companies receive financial support based on the additional costs incurred for climate-friendly production compared to conventional methods. This enables better cost calculations and risk mitigation, particularly for emerging technologies such as hydrogen utilization.

9. What are the legal frameworks for Climate Protection Contracts?

The legal frameworks for Climate Protection Contracts are established by the Federal Ministry for Economic Affairs and Climate Action. The funding complies with the requirements of EU state aid rules and other relevant legal provisions.

10. How can companies apply for Climate Protection Contracts?

Companies can apply for participation in Climate Protection Contracts through a preparatory procedure (often referred to as an Expression of Interest procedure). They need to submit their project plans and the required information in accordance with the guidelines. After evaluation, the bidding process for the allocation of Climate Protection Contracts is conducted.

11. What is a preparatory procedure?

The preparatory procedure is the initial step in participating in Climate Protection Contracts. Companies can notify the Federal Ministry for Economic Affairs and Climate Action of their projects and interest in funding through Climate Protection Contracts. Based on this information, the bidding process is carried out. Participation is still possible until August 7, 2023.12. Can companies apply with partners? Yes, companies can apply individually or jointly with other companies as a consortium for funding through Climate Protection Contracts. This allows for cooperative project implementation and shared utilization of resources and expertise. It also reduces the risk for each individual participant and promotes the implementation of large-scale projects.

12. Can companies apply with partners?

Yes, companies can apply individually or jointly with other companies as a consortium for funding through Climate Protection Contracts. This allows for cooperative project implementation and shared utilization of resources and expertise. It also reduces the risk for each individual participant and promotes the implementation of large-scale projects.

× How can I help you?