Germany to make funding available for industrial decarbonisation and carbon capture

Germany is launching a new funding round to help industrial companies develop technologies that reduce greenhouse gas emissions and support the transition to climate neutrality. The programme will fund research and innovative solutions in these areas.

The Federal Ministry for Economic Affairs and Energy (BMWE) announced the latest call on its website under the Federal Funding Programme for Industry and Climate Protection (BIK). Companies can submit project proposals by 6 December 2026. The proposed funding is subject to the availability of budgetary resources.

Eligible activities include industrial research, experimental development and feasibility studies focused on specific greenhouse gas emissions reduction projects. Companies can apply for support to develop new or significantly improved products, test innovative production processes, manufacture prototypes and carry out pilot projects. Projects involving the exploration, development and monitoring of CO₂ storage sites may also be eligible under the new programme.

The programme covers two main areas: industrial decarbonisation and carbon management. The first focuses on reducing greenhouse gas emissions from industrial processes, while the second supports technologies for capturing and using carbon dioxide or storing it underground.

These opportunities are particularly relevant to sectors where process emissions are difficult to eliminate through electrification or energy efficiency alone. According to the BMWE, the programme has already supported projects across a wide range of sectors, including cement and construction materials, chemicals, steelmaking, glassmaking, paper and pulp, waste processing, food production and mechanical engineering.

The portfolio also includes the direct capture of carbon dioxide from the atmosphere and technologies that incorporate captured CO₂ into products.

In the previous funding selection round in 2025, 38 industrial projects were selected to receive approximately 476 million euros in public funding, including contributions from regional governments. The ministry expects these projects to attract approximately 1.05 billion euros in private investment.

Supported initiatives include waste recycling, carbon capture, waste heat utilisation, low-carbon concrete and technologies designed to generate negative emissions. The new funding round comes as German industry faces the challenge of reducing emissions while maintaining its international competitiveness.