The European Commission approved a €5 billion ($5.4 billion) German government initiative on Monday to help businesses decarbonise their production processes.

Teresa Ribera, the commission’s vice president for a clear, just, and competitive transition, stated that the scheme would support projects aimed at significantly reducing industrial greenhouse gas emissions in Germany.

“This initiative will contribute to the EU’s climate neutrality goal by 2050 while minimising potential competition distortions,” Mr Ribera said.

The funding would assist German companies in reducing CO2 emissions through measures such as electrification, hydrogen use, carbon capture, and improved energy efficiency.

Businesses in sectors like chemistry, construction, and food, which were subject to the EU Emissions Trading System, would benefit from this scheme.

To qualify, projects must achieve a 60 per cent emissions reduction within three years and a 90 per cent reduction by the project’s conclusion.

(dpa/NAN)