The European Commission has granted approval for €5bn funding to Germany aimed at reducing carbon dioxide emissions within its industrial production processes. This funding, given under EU state aid rules, will utilize hydrogen, carbon capture, utilization and storage (CCUS), and electrification methods to help companies meet EU Emissions Trading Scheme (ETS) targets. The projects will be supported through two-way carbon contracts for difference known as 'Climate Protection Contracts' with a 15-year duration. The initiative focuses on achieving significant emission reductions in industries such as steel, cement, lime, and chemicals. To qualify for the funding, projects must demonstrate a 60% emission reduction within three years and 90% reduction by project completion. The supported projects will cover additional costs associated with adopting new production processes compared to conventional methods. Furthermore, if operational costs decrease, the beneficiaries will reimburse the difference to the German state. Teresa Ribera, the EU's Executive Vice-President for Clean, Just and Competitive Transition, expressed that these projects would play a crucial role in reducing greenhouse gas emissions from industrial processes in Germany, aligning with the EU's goal of achieving climate neutrality by 2050. Additionally, there is a Clean Industrial Deal consultation ongoing among European member states, aimed at enhancing clean energy production. A notable project within this funding is the agreement between TotalEnergies and RWE to supply 30,000 tonnes of green hydrogen annually to a major chemical complex in Germany starting from 2030. Despite positive steps, there are concerns raised by industry representatives regarding the lack of clarity in pathways for biomethane and the pace of reducing gas dependency within the EU. It is emphasized that biogases could be pivotal in achieving renewable energy goals and enhancing grid flexibility.