Germany plans to provide its industry with a double-digit billion-euro amount to support the transition towards cleaner production in industry, the economy ministry said on Thursday.

Source: Reuters

Under the mechanism, called 'carbon contracts for difference', which aim to shift the energy source used in energy-intensive industries from fossil sources to renewables and hydrogen, companies can qualify for subsidies if they reduce carbon emissions in their production.

Large, energy-intensive companies, medium-sized enterprises and small businesses are to benefit from the subsidies, the economy ministry said.

A tiered model to make low-cost electricity produced from renewable energy sources available to industry was in the works, the statement said.

To help private consumers master the switch to renewable energies, the ministry plans to establish a billion-euro programme that will provide support for low and medium income households.