The European Commission (EC) has approved a €5 billion German scheme under EU State aid rules to assist companies in decarbonising their production processes. This aligns with Germany's energy and climate objectives as well as the EU's broader goals for sustainable prosperity and competitiveness. The scheme, focused on reducing carbon dioxide emissions, includes advanced technologies such as electrification, hydrogen, carbon capture and storage (CCS), carbon capture and use (CCU), and energy efficiency enhancements. These efforts aim to achieve a 60% reduction in emissions within three years and a 90% reduction by the end of the project compared to conventional ETS standards. Funding will be allocated through a competitive bidding process, prioritizing projects with the lowest aid per tonne of avoided CO2 emissions. Recipients will receive support via long-term carbon contracts for difference, ensuring grants are adjusted based on market conditions and project performance. The scheme is expected to drive Germany's industrial decarbonisation, supporting projects that significantly reduce greenhouse gas emissions and contribute to the EU's climate neutrality target for 2050 while mitigating competition distortions. This approval reflects a positive sentiment towards hydrogen and other innovative carbon reduction technologies in the context of sustainable industrial development.