Reuters reveals Germany proposes green funding tool to help industry cut CO2

Reuters revealed that Germany’s government has presented plans for so-called contracts for difference (CfDs), instruments that help companies in the steel, cement, lime and ammonia industries finance the transition to low-carbon technologies. A draft plan by the environment ministry, seen by Reuters, says that companies that commit to cutting carbon dioxide emissions by more than half using innovative technologies could be given the go-ahead to operate on the basis of 10-year CfDs. While at the early stages, the plan shows the direction for Europe’s biggest economy to utilize CfDs payments, for which companies must bid in auctions, and which guarantee a minimum strike price for low-carbon products.