The German government launched on 12 March a novel subsidy system that supports energy-intensive industries in Germany in switching to more climate-friendly production processes, reports online news agency Clean Energy Wire. This move makes the country ‘a pioneer in Europe’ by linking climate action with increased competitiveness, declared economy minister Robert Habeck.
After receiving go-ahead approval from the EU, the subsidy scheme is ready to disburse funding in the double-digit billion euro range over the next few years to transform paper, steel, chemicals and cement production by compensating the price difference compared to conventional fossil fuel-based procedures.
Industry representatives welcomed the scheme as a potential transformation booster, but environmental activists warn that it could lock in old technologies if it also rewards projects that continue to cause greenhouse gas emissions.
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