Scientific analyses on the introduction, design, and scaling of Carbon Contracts for Difference (CCfD) for the decarbonization of basic industries

The project relates to the current political discussion on the decarbonization of industry. The focus is on project-based Carbon Contracts for Difference (CCfD) for industry, a new instrument that does not yet exist in practice. An important focus is on the further design and monitoring of a national support scheme. The findings of the project are incorporated into the further development of the program as required and as targeted as possible. Specifically, the project team is analyzing selected relevant industries or production processes in detail, especially with regard to their cost structure and thus expected abatement costs. The team also considers Carbon Contracts for Difference as a new policy instrument in their interplay with other policies or support instruments for emissions-intensive industry, the EU Emission Trading System and Carbon Border Adjustment Mechanism, and possible new instruments such as demand quotas. It also considers interactions with other markets, particularly for hydrogen and renewable electricity, and with the energy system as a whole. The work will be supported by legal expertise as needed.