Greens warn: Special assets are at risk of being misused!

Greens warn: Special assets are at risk of being misused!

The debate about the newly established special fund in Germany is gaining momentum. Against the background of the recently passed amendments to the Basic Law to loosen the debt brake, the Greens express concerns that the funds from the special fund could not be used as planned. This particularly applies to investments that were originally intended to promote climate protection and the transformation of the economy. Before the Black-Red coalition came to power, the Greens played a key role in the creation of this special fund.

The leader of the Green Party, Katharina Dröge, warns of a possible breach of word by the government, which could have serious consequences for the economy, infrastructure and climate protection. The reason for their concerns is a circular from Finance State Secretary Steffen Meyer, in which the ministries are asked to reduce their budgets for measures that are financed from the special fund. Finance Minister Lars Klingbeil (SPD) rejects the allegations and emphasizes that 10% of the budget must be made available for investments.

Background of the special fund

The special fund totals 500 billion euros, of which 100 billion euros will flow into the Climate and Transformation Fund (KTF). This fund was originally founded as the “Energy and Climate Fund” in 2011 and renamed in 2022 to support Germany's climate-neutral transformation. With the new regulations and a Germany-wide focus on climate protection, the KTF is ready to promote significant investments in the climate-friendly transformation of the economy.

The economic plan for 2025 envisages KTF income and expenditure totaling 25.47 billion euros. Revenue is generated through CO2 pricing and the auctioning of emission certificates. The sources of income are as follows:

• CO2-Bepreisung: 15,41 Milliarden Euro
• Versteigerung von Emissionszertifikaten: 6,74 Milliarden Euro

The planned expenses for 2025 include:

• Gebäude: 14,36 Milliarden Euro (z.B. für klimafreundliche Heizungen)
• Mobilitätswende: 1,58 Milliarden Euro (z.B. für E-Ladesäulen)
• Industriestrom: 3,3 Milliarden Euro (für stromintensive Unternehmen)

Criticism and challenges

Despite the steps taken, there are critical voices. Economists emphasize that the 100 billion euros provided are not enough to close the financing gap. Christoph Bals from Germanwatch demanded that at least 10% of KTF spending go to international climate finance. The public sector must invest between 37 and 52 billion euros more annually in order to meet the requirements of climate neutrality by 2045.

By supporting the special fund after intensive negotiations, the Greens also have to combat fears that the money may be misused for “client gifts”. In addition, municipalities must submit heat plans to free households from fossil natural gas, which requires additional action. Estimates for the costs of climate neutrality by 2045 are between 2.32 and 2.62 trillion euros, with a government share of around 800 billion euros.

Amid these uncertainties, 50% of those surveyed consider the 500 billion euro special fund to be the right choice, but also underlines the need to ensure transparency and commitment in the use of the funds.

Overall, the situation remains tense and the discussion about the correct use of funds will continue to play an important role in the political agenda.

For more information see Rail.de and ZDF.de.