(Bloomberg) -- Germany is set to hold the inaugural auction of a program to offer as much as €4 billion ($4.4 billion) in initial funding to help steel, cement and other heavy industrial producers transition to green technologies.

Economy Minister Robert Habeck will present details of the 15-year program of “climate protection contracts” at a news conference Tuesday in Berlin, according to the ministry. Germany, which has set aside about €50 billion for the program, will become the first European Union nation to make use of a new mechanism to help cut harmful emissions.

As part of the program, the government will compensate companies in sectors like steel, cement and glass for additional expenses incurred in using clean technologies compared to conventional processes. Applicants present proposals for the amount of support needed, with the lowest bids receiving funding.

Germany’s ruling coalition aims to slash carbon emissions by two-thirds by 2030 on the way to climate neutrality by 2045. Cleaning up its energy-intensive manufacturing sector is crucial to reaching those targets.

Read More: EU Aims to Cut 90% of Emissions by 2040. What Does That Mean?

The EU last month approved the funding plans for the new program, which Habeck said will ensure “sustainable value creation with pioneering climate-friendly technologies and sustainable jobs.”

The mechanism aims to facilitate the removal of around 350 million tons of CO2, mainly in the steel, cement, paper and glass sectors.

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