BERLIN (dpa-AFX) - Energy-intensive companies in Germany can now apply for a new state instrument worth billions. Under the so-called climate protection contracts, the state steps in to finance new, more climate-friendly production processes and assumes the additional costs until these have become cheaper and thus competitive. The companies are then expected to pay the money back. Four billion euros for a term of up to 15 years are available for the first bidding round that has now been opened, as announced by the Federal Ministry of Economics in Berlin on Tuesday.

Companies that successfully took part in the preparatory procedure last summer can apply. They have four months to submit a bid. The contracts will then be awarded to the most cost-effective bidders. Sectors such as the paper, glass, steel and chemical industries will be considered. According to the ministry, a total of around 350 million tons of carbon dioxide are to be avoided over the term of the demand programme until 2045.

The Federation of German Industries (BDI) welcomed the launch of the tenders. "Extensive state support is necessary if the politically desired transformation towards climate neutrality is to succeed in a short space of time," said BDI President Siegfried Russwurm, who pointed out the high costs of the changeover. Following the budget ruling, there would be significantly less funding available for climate protection agreements in the current year than originally planned. The Federal Government must secure funding for the coming years./hrz/DP/mis