Germany allocates over 3 billion dollars! Supporting carbon emission reduction
The Problem of Global Warming and Carbon Emission Reduction is a Major Global Issue
Germany is one of the countries actively addressing this problem. The country has allocated a budget of 3 billion dollars to support carbon emission reduction projects.
On Tuesday, Germany’s Ministry of Economy revealed that it had allocated a budget of 2.8 billion euros (3.1 billion dollars) or approximately 100 billion Thai Baht to support 15 industrial companies in a carbon reduction program under the “Climate Protection Contracts.” This initiative is part of Germany’s goal to achieve climate neutrality by 2045. Berlin will provide funding to the companies over a 15-year period in exchange for reducing carbon emissions in their production processes.
These 15 projects are expected to reduce carbon dioxide emissions by 17 million metric tons over the duration of the contracts. However, critics argue that the support is too costly, as it will only slightly reduce Germany’s carbon emissions and will support energy-intensive industries, which are more suitable for countries with lower energy costs.
Berlin stated that this funding is only a temporary lifeline for certain industries until renewable energy use increases, which will eventually reduce the cost of energy to normal levels.
“Robert Habeck,” the Minister for Economic Affairs, said in a statement, “Germany is the first European Union member state to implement Climate Protection Contracts, making us a leader in reducing carbon emissions in the industrial sector.”
The Ministry of Economy explained that these contracts include a flexible financing mechanism that adjusts to changes in energy and carbon dioxide prices. The Ministry also added that it expects to pay less than the maximum amount initially allocated. Originally, Berlin planned to offer up to several tens of billions of euros in support, but the project risked being canceled due to a constitutional court ruling last year, which prohibited the government from using 60 billion euros of debt for climate protection projects.
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