German Economy Minister Katherina Reiche announced on Friday that tenders for new carbon contracts for difference (CFDs) totaling 6 billion euros ($7.01 billion) will start next week.
Carbon CFDs, or climate protection agreements, provide subsidies to companies for initially high-cost alternative fuels, which they apply for through these tenders.
Companies are required to reimburse the subsidies to the state as operating costs decrease with improved efficiency of the alternative technology.
During a parliamentary session, Reiche dismissed claims that the funding could be reduced, clarifying that the related reports pertained to project management costs rather than the actual funds for the contracts
