This, he said, would include payments to offset higher costs to
avoid carbon emissions, Habeck said, adding building
decarbonised supply chains was the only chance for Germany to
keep key industries alive.
"There should be no lack of government support. Of course, we
don't want to over-support either. But the companies that now
want to make the switch should be supported and compensated for
the prices that cannot be realized on the market," Habeck said.
So-called carbon contracts for difference, which essentially
compensate firms for higher costs as a result of decarbonised
production, are expected to account for a mid-triple digit
billion euro amount, Habeck said.
Once production - which can include cement, steel and chemicals
- has reached a competitive level, a part of the cost will be
paid back to the state, Habeck said.
"There will be a tipping point at some stage because CO2 prices
will rise and certificate trading will go up. Production will
become cheaper as a result," he said.
(Reporting by Christoph Steitz and Vera EckertEditing by
Madeline Chambers)
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