Germany earmarks almost €60bln for energy transition spending next year
Clean Energy Wire
[Updates with cabinet agreement]
The German government has earmarked almost 60 billion euros to boost the country’s emission reduction efforts next year. The designated climate action budget – the Climate and Transformation Fund (KTF) – amounts to 57.6 billion euros and was adopted by cabinet. This sum exceeds this year’s target expenditure by 21.6 billion euros. Funding priorities include:
- €18.8 billion for energy-efficient building renovation and boiler replacements. The coalition government wants to pass its controversial heating law in parliament at the beginning of September following the summer break.
- €12.6 billion for renewable electricity feed-in support, which are financed entirely from federal funds since July.
- €4.7 billion for the rollout of electric mobility infrastructure including charging facilities, according to media reports.
- €4.1 billion for the promotion of semiconductor production.
- €3.7 billion for the nascent hydrogen industry.
- National rail operator Deutsche Bahn will receive between two and four billion euros annually from the fund, according to media reports.
Germany’s Climate and Transformation Fund is partly fed by revenues from EU emissions trading scheme (ETS) and from the country’s CO₂ price for transport and heating, which is set to rise at the start of next year from the current 30 euros per tonne. Reuters reported that the government had agreed on an increase to 40 euros. The plan is to be discussed in parliament at the beginning of September, jointly with the general federal budget for next year.
