18 September 2026 | For around four months, energy-intensive companies were able to apply for funding under the 2026 bidding procedure. By the end of the application deadline on 9 September 2026, 21 bids had been submitted. The funding requested significantly exceeds the auction volume of five billion euros.

On 9 September 2026, the application deadline expired for the 2026 bidding procedure for Carbon Contracts for Difference, which had opened on 5 May 2026. This meant that companies in energy-intensive industries that had successfully taken part in the 2026 preparatory procedure had around four months to apply for funding for their transformation projects.

A total of 21 bids were received, including from the chemicals, glass and ceramics, gypsum, lime, metals, pulp and paper, and cement sectors. The funding requested significantly exceeds the total auction volume of 5 billion euros. This demonstrates that the funding scheme continues to attract considerable interest from energy-intensive industries in the 2026 bidding procedure.

The projects submitted rely on a variety of decarbonisation technologies. The auction includes both electrification projects and projects involving CCU/S and hydrogen. Since the Carbon Dioxide Storage and Transport Act came into force in November 2025, CCU/S has been eligible for funding for the first time in the 2026 bidding procedure for Carbon Contracts for Difference.

The number and range of bids submitted also highlight the energy-intensive industry’s willingness to invest: even in the current challenging economic climate, companies are continuing to plan to decarbonise their production processes and implement relevant projects in Germany as an industrial location.

In the next step, the Federal Ministry for Economic Affairs and Energy will review the bids submitted. Contracts will then be awarded on a ‘pay-as-bid’ basis until the funding allocated for the auction has been fully utilised. The aim is to support those projects that can achieve the greatest possible reductions in greenhouse gas emissions whilst using the least possible amount of public funds. Contracts for the selected projects are due to be awarded by the end of the year.

Carbon Contracts for Difference provide targeted incentives for companies to invest in low-carbon production processes. In doing so, they support the transformation of energy-intensive industries in line with national and European climate targets. At the same time, they are intended to promote the market ramp-up of innovative technologies and strengthen Germany’s competitiveness as an industrial location.

The funding scheme is modelled on hedging instruments used in the financial sector: companies that invest in low-carbon production processes are protected against fluctuations in CO2 and energy prices over a period of 15 years. At the same time, additional costs incurred compared with conventional production processes can be offset. Both investment and operating costs are eligible for funding.