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Federal Funding for Industry and Climate Action (BIK) is entering its second round

Funding for almost 40 industrial projects and high investments: the Federal Funding for Industry and Climate Action (Bundesförderung Industrie und Klimaschutz, BIK) works. A second funding round is starting now: companies can submit their project outlines until the end of February 2026.

German industry is pressing ahead with climate action. This is reflected by the results of the completed 2025 funding competition of the Federal Funding for Industry and Climate Action (BIK). In the context of the programme, the Federal Ministry for Economic Affairs and Energy (BMWE) helps companies to make their production more climate-friendly while remaining competitive.

^{38 projects for climate-friendly industrial processes}

In the first funding competition, 38 industrial projects from several sectors have been selected, including construction materials, chemicals, steel, glass and paper, waste management and mechanical engineering. Projects for direct carbon capture from the air have also been selected. The projects are spread across all regions of Germany, and they mirror the great variety of climate-friendly solutions in industry.

The applications for funding cover new production processes, energy-efficient installations, and technologies for carbon capture, storage and utilisation. Especially in fields where it is still difficult to prevent emissions, these solutions offer new prospects.

^{Funding triggers high investments}

The selected projects receive funding totalling €476 million. Around €106 million are provided by the Länder, which are co-financing large-scale projects. This funding will mobilise private investment of more than €1 billion.

Parliamentary State Secretary Gitta Connemann said: “The BIK funding competition shows that our industry is ready. Climate action and competitiveness are not conflicting aims. They rather complement one another. The projects which receive funding deliver solutions – ranging from the recycling of mixed waste, to carbon sequestration in concrete, hybrid heating systems, carbon capture, efficient use of waste heat and negative emissions.”

According to Ms Connemann, further projects in the field of CCU/CCS will shortly be launched. She added: “The BIK funding competition will provide a boost for these projects, so that ideas can quickly be put into practice. 

^{Two modules – one common objective}

The Federal Funding for Industry and Climate Action (BIK) consists of several modules addressing different challenges which industry is facing. Module 1 promotes investments and research and development projects with the aim to decarbonise production processes. These include electrification, the use of green hydrogen and new, energy-efficient processes.

Module 2 supports projects for the utilisation, storage or direct removal of carbon dioxide from the atmosphere (also known as CCU/S) – e.g. by means of carbon capture technologies or direct air capture. These approaches are particularly important for industries in which it is difficult to prevent CO₂ emissions for technical or economic reasons.

^{Second call for proposals until the end of February 2026}

Building on the successes of the Federal Funding for Industry and Climate Action programme, the Federal Ministry for Economic Affairs and Energy has now launched the second call for proposals. Companies can submit their project outlines to the respective project management agency until 28 February 2026. The current competition applies to both funding modules (module 1, sub-modules 1 & 3 and module 2) and again supports investment and research and development projects that make a clear contribution to climate change mitigation.

^{Strengthening both climate action and competitiveness}

The Federal Funding for Industry and Climate Action (BIK) creates reliable framework conditions for pilot projects and innovative technologies. The aim is to put new solutions more quickly into practice and press ahead with the industrial transformation. What has been achieved so far shows that the transition is feasible – and that it offers opportunities for both companies and the climate.