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Germany Unveils Industry Power Subsidy, Gas-Plant Tenders and Flight Tax Cut in Competitiveness Push

Final approval from Brussels remains the hurdle before the package can be implemented.

Overview

  • From 2026 to 2028, energy‑intensive firms are slated to pay about €0.05 per kilowatt-hour under a state-backed industrial electricity rate estimated to cost €3–5 billion per year from the Climate and Transformation Fund.
  • Berlin set out a power-plant plan to tender roughly 8 gigawatts of new gas capacity in 2026 for operation by 2031 with hydrogen-ready specifications, with state support contingent on EU state‑aid clearance.
  • The government plans to reduce the air ticket tax from 1 July 2026 in relief worth about €350 million, drawing praise from aviation groups and criticism from environmental organizations.
  • A new Deutschlandfonds is intended to anchor private capital for investment in areas such as energy infrastructure and security-focused startups, with detailed design to be presented in the coming days.
  • The European Parliament backed a 90% emissions cut target for 2040 and supported delaying ETS2 for transport and buildings to 2028, while reports in Germany point to a national CO2 price cap through 2027 as the IEA highlights accelerating renewables in its 2025 outlook.