Habeck unveils a substantial financial initiative backing environmentally sustainable ventures within small to medium-sized enterprises.
The national administration is pushing mid-sized businesses to embrace greener practices by introducing a massive financial aid plan worth billions of euros. On Friday, Vice-Chancellor Robert Habeck revealed the BIK initiative, short for "Federal Funding for Industry and Climate Protection," in Berlin. Running until 2030, the program initially earmarks about 3.3 billion euros. Companies can submit their applications during a three-month period commencing in September. Funds will be sourced from the Climate and Transformation Fund (KTF).
Economics Minister Habeck highlighted that the BIK initiative matches the objectives of the climate pledge agreements, under which the government provides subsidies for the extra expenses of eco-friendly production over conventional manufacturing. This initiative is unprecedented globally among developed nations, with the goal of making Germany carbon-neutral by 2045. Both funding programs are mutually exclusive, as per the ministry's guidelines.
For small to medium-sized enterprises, the BIK initiative begins funding projects worth 500,000 euros, with larger companies needing at least a million euros. For projects valued at 15 million euros or more, a 30% contribution from the federal states is required.
The inaugural module of the BIK initiative concentrates on industrial process optimization or German facilities intending to lower their CO2 emission by at least 40%. Key industries such as steel, glass, ceramics, paper, cement, or lime are the primary focus. As per the Green-led Economics Ministry, "The highest possible funding of 200 million euros per company can be secured through module 1."
The second module prioritizes CO2 capture, storage, and utilization - abbreviated as CCS or CCU. This module could assist in investments and innovation projects in areas with unavoidable CO2 emissions, such as lime, cement, and thermal waste treatment sectors. Eligible projects can secure up to 30 million euros in funding, while industrial research projects may get funding of up to 35 million euros.
The Commission's role in this initiative is to oversee the distribution of funds from the Climate and Transformation Fund (KTF), as stated by the Green-led Economics Ministry. The Commission's guidelines ensure that the funding programs, such as the BIK initiative and module 1, are implemented fairly and effectively.
