German ministers seek climate budget funds

As Germany’s government parties step up their rhetoric on climate policy ahead of key decisions planned for September, several ministers are seeking millions from the country’s Energy and Climate Fund. Agriculture minister Julia Klöckner (CDU) recently called for 500 million euros for reforestation to save Germany’s “most important climate action ally”. Earlier, German development cooperation minister Gerd Müller (CSU) also demanded 500 million euros for a climate action initiative in African countries. This budget is now at risk due to Klöckner’s plans, reports German tabloid Bild am Sonntag. “It's incomprehensible that we have to fight over every cent," Müller told the newspaper. Germany should not try to “save money” where projects to reduce greenhouse gas emissions are most effective for every euro spent, he said, adding: “We need a European-African climate and energy pact now.”

In addition to the renewables levy (EEG surcharge), the Energy and Climate Fund is a central instrument in financing Germany’s energy transition and crucial projects to help reach the country’s climate targets. It draws the majority of its funds from the revenues of the European Union Emissions Trading System (ETS). Most of the 4.5 billion euros planned for 2019 are earmarked for the renovation of buildings to make them more energy-efficient, energy efficiency projects for German industry, and establishing e-car battery cell production plants in the country.