The government’s carbon contracts for difference are an important tool for driving forward climate neutrality in industrial processes. They provide long-term financial support to companies that voluntarily commit to significantly cutting their carbon emissions in the near future. To benefit from the funding scheme, companies must successfully participate in an auctioning procedure and the Federal Ministry for Economic Affairs and Climate Action has just awarded the first carbon contracts for difference. Contracts were awarded to those companies that submitted plans to avoid greenhouse gas emissions most efficiently and at the lowest relative cost by converting their sites. Glencore Nordenham, which faces international competition regarding the non-ferrous metals zinc and lead, made a convincing bid and will now be able to make an even greater contribution to achieving the ambitious climate protection goals.
BBH partner and lawyer Dr. Tigran Heymann is delighted about the outcome:
“The BBH group has been advising Glencore Nordenham for many years. Energy-intensive industrial companies operating in sectors subject to strong international competition are on quite a rocky road to climate neutrality. Carbon contracts for difference can be a useful instrument for companies like Glencore Nordenham to become more climate-friendly and keep their competitive edge. They also secure the future of lead production in Germany, which is important for the energy transition, the production of batteries and e-mobility.”
Dr. Hanno Butsch, partner counsel at BBHC, adds:
“Glencore Nordenham is working hard to achieve greenhouse gas neutrality for its lead smelter. While there is a similarly high level of commitment in other sectors, the award enables the lead smelter to immediately implement measures without jeopardising its international competitiveness. At the same time, about 900,000 tonnes of carbon emissions can be avoided and about 3,000 direct and indirect jobs safeguarded. That is a wonderful achievement for the company and the BBH group.”
Once again, the BBH group’s interdisciplinary approach proved successful. In addition to legal expertise, the group provided business and technical advice. Further funding rounds and schemes will help companies on the path to decarbonisation. The pioneering team advising Glencore Nordenham in the first round of carbon contracts for difference consisted of BBH partner and lawyer Dr. Tigran Heymann, partner counsel and lawyer Carsten Telschow, lawyer Vera Grebe as well as BBH Consulting partner counsel Dr. Hanno Butsch, partner counsel David Siegler and counsel Fabian Rottmann.
With more than 700 employees, 7,000 clients and 7 offices, the BBH group is a leading provider of advisory services to energy and infrastructure companies and their customers. Energy and supply companies, particularly public utilities, municipalities and local authorities, industrial companies and international groups are among its core clients. The BBH group assists these and many other companies and organisations with legal, business and strategic advice.
Contact:
Prof. Dr. Ines Zenke
Rechtsanwältin/Lawyer, Partnerin
Phone +49 (0)30 611 28 40 - 179
ines.zenke@bbh-online.de
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