The European Commission has approved a €5 billion German State aid scheme to assist companies in decarbonising their production processes, particularly those subject to the EU Emission Trading Scheme. The scheme, aimed at reducing CO2 emissions, will utilize technologies such as electrification, hydrogen, carbon capture, and energy efficiency measures. Projects supported by the scheme will involve various industries like chemistry, plaster, and glass, with a focus on achieving significant emission reductions. The aid will be provided through competitive bidding processes and Climate Protection Contracts, spanning 15 years. Germany's commitment to ensuring overall CO2 reductions and preventing emission displacement led to the Commission's approval under EU State aid rules. This scheme aligns with European and national environmental targets and contributes to climate neutrality by 2050, with a positive sentiment towards driving decarbonisation through innovative technologies like hydrogen.