Reuters helps Germany take on higher energy costs

FRANKFURT (Reuters) – Germany will help companies struggling to cope with high energy costs that threaten to damage energy-intensive industries, Economy and Climate Minister Robert Habeck said at an industry conference on Tuesday.

This, he said, would include payments to offset higher costs to prevent carbon emissions, Habeck said, adding that building decarbonized supply chains was the only way for Germany to keep key industries alive.

“There is no need for government support. Of course, we don’t want to help too much. But now companies that want to make a difference need to be helped and compensated for by prices that can’t be realized in the market.” said Habeck.

The difference in carbon contracts, which essentially offset higher costs for companies as a result of decarbonised production, is expected to be half a billion euros in the triple-digit figure, Habeck said.

After production – which could be cement, steel and chemicals – has reached a competitive level, part of the cost will be returned to the state, Habeck said.

“At some point there will be a tipping point because CO2 prices will go up and the trade in certificates will go up. As a result, production will go down,” he said.