06 October 2025 | The Carbon Contracts for Difference are moving into the next phase: the preparatory procedure for the 2026 bidding procedure begins today. Participation by 1 December 2025 is a prerequisite for being able to submit a bid in the subsequent 2026 bidding procedure.

The Federal Ministry for Economic Affairs and Energy (BMWE) is today launching the preparatory procedure for the 2026 bidding procedure for Carbon Contracts for Difference. Through the Carbon Contracts for Difference, the BMWE supports investment by energy-intensive industries in sustainable, low-carbon production processes, including in the chemical, pulp and paper, primary steel, other metals, cement and lime, as well as ceramics, glass and gypsum sectors.

During the preparatory procedure, the industry will be consulted on the proposed funding rules. Furthermore, the preparatory procedure allows new projects to participate in the auction. Compared with the first round of the programme in 2024, the scheme has been designed to be more flexible and open to a wider range of technologies. In particular, technologies for carbon capture and storage (CCS) and carbon capture and utilisation (CCU) are now eligible for funding.

Participation in the preparatory procedure by 1 December 2025 is a prerequisite for companies to be able to submit a bid in the subsequent 2026 bidding procedure. Companies that have already taken part in the preparatory procedure in the summer of 2024 (Federal Gazette AT 29 July 2024 B1) may participate in the 2026 preparatory procedure by simply submitting a declaration of confirmation. The procedural rules for the 2026 preparatory procedure are being published today in the Federal Gazette.

The 2026 bidding procedure is expected to begin in the middle of next year. The Carbon Contracts for Difference will be awarded through a competitive auction process. This ensures that funds are used effectively and that only the most efficient projects are supported.