Challenges in designing an industrial decarbonization support scheme: Insights from the German CCfD scheme

Robin A. Blömer*

Papeles de Energía, N.º 29 (octubre 2025)

Abstract**

To support industrial transformation towards climate neutrality, Germany has developed a Carbon Contract for Differences (CCfD) support scheme. The scheme aims to complement the carbon pricing of the EU ETS by subsidizing and de-risking innovative decarbonization technologies in industry. It can become a cornerstone in the German competitiveness and a transformation strategy of the manufacturing sector.