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Plugging the structural change gap

The Federal Ministry for Economic Affairs and Climate Action is plugging a gap in the support available for structural change in the revision of the STARK funding programme. The money can now also be used as direct support for businesses.

The funding programme is the largest and most broadly based programme for the structural change caused by the phase-out of coal. Previously, the main goals of the programme were to improve the policy environment for the transition, to boost employment and to enhance economic output. Of course, the companies also benefit from that. But they can now receive funding directly, via the new funding category entitled “transformational technologies”, e.g. for the production of batteries, solar panels, wind turbines, heat pumps, electrolysers, and equipment for carbon capture, use and storage.

The STARK programme aims to ensure that the people and the regions will have good prospects following the phase-out of coal and that the economic, ecological and social transition can be a success.

^{Companies play a major role in shaping structural change}

Minister Habeck commented: “The companies in the mining areas and at the power plant sites play a key role in shaping structural change on the ground. They create and safeguard jobs by reinventing themselves and the regions, or investing in specific new value creation. We aim to promote these transformational processes through the revised version of STARK. At last, we are now making funding which is earmarked to strengthen the economic structures available directly to help companies and to create jobs in industry.”

Also, investors can receive assistance with “skills and training”, “strengthening entrepreneurial activity” and “innovative approaches”.

The German text of the new funding guideline is available here.