Klimaschutzverträge (Carbon Contracts for Difference for Industry)
Sources
Country · www.bundeswirtschaftsministerium.de
Current value: Value: de
www.bundeswirtschaftsministerium.de
www.bundeswirtschaftsministerium.de
www.bundeswirtschaftsministerium.de
Last confirmed: 2026-10-01T06:09:03.829918+00:00
Effective: 2024-03-12
Status · www.bundeswirtschaftsministerium.de
Current value: Value: in_force
www.bundeswirtschaftsministerium.de
www.bundeswirtschaftsministerium.de
www.bundeswirtschaftsministerium.de
Last confirmed: 2026-10-01T06:09:03.829918+00:00
Effective: 2024-03-12
Effective · www.bundeswirtschaftsministerium.de
Current value: Value: 2024-03-12
www.bundeswirtschaftsministerium.de
www.bundeswirtschaftsministerium.de
www.bundeswirtschaftsministerium.de
Last confirmed: 2026-10-01T06:09:03.829918+00:00
Effective: 2024-03-12
Policy details
Sources
Official title · www.bundeswirtschaftsministerium.de
Current value: Value: Klimaschutzverträge (Carbon Contracts for Difference for Industry)
www.bundeswirtschaftsministerium.de
www.bundeswirtschaftsministerium.de
www.bundeswirtschaftsministerium.de
Last confirmed: 2026-10-01T06:09:03.829918+00:00
Effective: 2024-03-12
Summary · www.bundeswirtschaftsministerium.de
Current value: Value: Germany's 'climate contracts' programme (Klimaschutzverträge) provides 15-year Carbon Contracts for Difference (CCfDs) to energy-intensive industrial companies switching to low-carbon processes (including green hydrogen-based direct reduction steelmaking or hydrogen feedstock in chemicals): the government pays the difference between a project's fixed 'strike price' (€/tonne CO2e avoided) and the prevailing EU ETS carbon price; companies repay the subsidy if carbon prices exceed the strike price.
www.bundeswirtschaftsministerium.de
www.bundeswirtschaftsministerium.de
www.bundeswirtschaftsministerium.de
Last confirmed: 2026-10-01T06:09:03.829918+00:00
Effective: 2024-03-12
Key thresholds · www.bundeswirtschaftsministerium.de
Current value: Value: Eligible sectors: steel, chemicals, cement/lime, glass, paper, metallurgical. Minimum annual emission threshold: 10,000 tCO2 (smaller firms may form consortia). Emission reduction milestones: ≥50% reduction vs. baseline by year 4 (updated from ≥60% by year 3 in Round 1 rules); ≥85% reduction in the final contract year (updated from ≥90%). Contract duration: 15 years. Round 1 (2024): €4 bn budget, 15 contracts awarded, ~€2.8 bn maximum funding volume, projected CO2 savings ~17 Mt over contract period. Round 2 launched 2025: up to €5 bn. Strike prices are confidential / not publicly disclosed per winner.
www.bundeswirtschaftsministerium.de
www.bundeswirtschaftsministerium.de
www.bundeswirtschaftsministerium.de
Last confirmed: 2026-10-01T06:09:03.829918+00:00
Effective: 2024-03-12
Support value · www.bundeswirtschaftsministerium.de
Current value: Value: Round 1: up to €2.8 bn awarded to 15 companies; Round 2: up to €5 bn; indicative programme total: several tens of billions of euros over the long term. Individual cap per applicant: €1 bn in Round 1.
www.bundeswirtschaftsministerium.de
www.bundeswirtschaftsministerium.de
www.bundeswirtschaftsministerium.de
Last confirmed: 2026-10-01T06:09:03.829918+00:00
Effective: 2024-03-12
End date · www.bundeswirtschaftsministerium.de
www.bundeswirtschaftsministerium.de
www.bundeswirtschaftsministerium.de
www.bundeswirtschaftsministerium.de
Last confirmed: 2026-10-01T06:09:03.829918+00:00
Effective: 2024-03-12
H2Prism note
H2Prism: For hydrogen-consuming steel or chemical projects, the CCfD is the primary route to bridging the green premium for decades — but because strike prices are competitively bid and confidential, developers must model a credible CO2 abatement cost that undercuts rivals while still making the project bankable.