Funding programme ‘Decarbonisation of Industry’

About the funding programme

The ‘Decarbonisation of Industry’ funding programme from the German Federal Ministry for Economic Affairs and Climate Action (BMWK) is supporting energy-intensive industries (EIIs) in Germany in their efforts to achieve carbon neutrality.

Energy-intensive industries form the backbone of the German economy. The high energy requirements and CO2 emissions required by their processes turns decarbonising these industries into a major challenge. Responsible for around 24 percent of all greenhouse gas emissions in Germany, EIIs are an important part of achieving the German nationally determined contributions (NDCs) for 2030 and its carbon neutrality goal for 2045, as set out by German legislation.

The BMWK is therefore using its ‘Decarbonisation of Industry’ funding programme to finance projects in energy-intensive industries that achieve the most comprehensive and permanent reductions to process-related greenhouse gas emissions that are hard or impossible to avoid with the technologies currently available.

What kinds of consulting services are offered?

Advice is available from the project outline onwards. Your main contact here is the KEI. Apart from answering basic questions to do with the funding programme itself, the KEI also works with experts from the Federal Environment Agency (UBA) to advise on technical or subject-specific issues during project outline development and application submission.

Competence Centre on Climate Change Mitigation in Energy-Intensive Industries (KEI)

What is the funding procedure?

Funding is awarded as a grant/investment grant as part of a partial financing procedure (financial donation). The grant itself is limited to a maximum amount. In accordance with ‘Decarbonisation of Industry’ guidelines, all grants are awarded as non-repayable donations to finance specific projects. The grant can be awarded based on expected costs or outlay. Grants are conditional on an appropriate contribution by the applicant. Grant amounts are assessed based on the project-related costs eligible for funding.

What is eligible for funding?

Projects in energy-intensive industries with process-related emissions are eligible for funding where these projects aim to reduce greenhouse gas emissions as effectively and permanently as possible. Funding covers research and development from technology readiness level (TRL) 4, trials conducted in testing or pilot facilities and investments in plant for industrial-scale deployment. These include measures with the following focus:

  • Low-carbon or carbon-neutral manufacturing methods
  • Innovative and high-performance methods for conversion to power-to-X technologies
  • Integrated production processes and innovative combined processes
  • Research, development and trialling of alternatives to products that cause process-related emissions during their manufacture
  • Low-carbon or carbon-neutral manufacturing methods for these alternative products and investments in plant
  • Bridge technologies for making substantial steps towards greenhouse gas neutrality
  • Monitoring and evaluation aimed at success monitoring

Projects for conducting basic research, measures focused on energy and resource efficiency or engineering techniques for lightweight construction are not eligible for funding. Projects for CO2 storage (CCS) and CO2 capture with the aim of subsequent CO2 storage are also not eligible for funding.

Who can submit a funding application?

Companies and consortia of companies working in trade and industry are eligible to submit an application if they meet the following criteria:

  • They belong to a sector that is covered by the scope of EU emissions trading and characteristically produces process-related emissions
  • They are planning or operating plant that is licensed according to the criteria of the Federal Immission Control Act
  • They operate business premises or a branch office in Germany and plan to relocate the funded project to Germany

When managed by a company that is eligible for application, higher education institutions and other research institutions may be involved as project partners, for the implementation of the project – and for accompanying research in particular.