According to ESG Today, as much as 50 billion euros will be deployed over the course of these years to ensures companies can afford the new technologies that would allow for the development of more energy-efficient industries.

Since Germany's industry is responsible for 20% of the country's emissions, this measure comes as authorities want the nation to hit it's 2045 climate neutrality targets.

The system will be bid-based, meaning that companies who want to benefit from the state aid will have to submit a bid, based on the amount of support they might need to avoid the release of one ton of CO2 emissions, which would be the price difference.

If they are eligible, they will receive the state aid in the form of a variable subsidy, which will represent the actual price difference relative to the bid value. Over time, the amount of money companies will need is expected to decrease, as renewable energy will become more common and the price of carbon in Europe will grow.

One important criterion for companies to be able to participate in the bidding process is that they must belong to an energy-intensive industry, such as steelmaking, cement or chemical manufacturing. They also need to invest in a system which has 90% lower emissions compared to the systems they currently use.