Climate fund threatens to be distracted: BUND warns against misuse of billions in funds

Climate fund threatens to be distracted: BUND warns against misuse of billions in funds

The planned establishment of the special fund for infrastructure and climate neutrality is currently causing considerable discussion. The decision is due in the Federal Cabinet next Tuesday. Verena Graichen, the managing director for politics at the Federation for the Environment and Nature Conservation Germany (BUND), is critical of the establishment law that is intended to create this special fund. She emphasizes that Finance Minister Klingbeil is missing a historic opportunity with an approach without a clear climate policy.

Graichen demands that the funds be used exclusively for new measures to support climate neutrality. Using existing climate funds to subsidize gas prices is viewed as problematic. She describes a financial policy that does not prevent climate-damaging investments as inefficient and expensive and warns of the need for a future-proof financial policy that contributes to achieving climate goals.

Investments and infrastructure

The special fund is to be endowed with up to 500 billion euros by 2045 to enable urgently needed investments in infrastructure and climate protection. Of this, 100 billion euros will flow into the climate and transformation fund, while at the same time another 100 billion euros will be available to the federal states for infrastructure projects. An increase in the investment shares in the federal budget by at least 10% is required to ensure that the investments are “additional”.

The planned investments include, among other things, the renovation of high-performance corridors, the upgrading of waterways as well as significant increases in urban development funding and investments in the rail network. These measures reflect the high financing needs in the areas of transport infrastructure, healthcare and education. In addition, Deutsche Bahn has reported a need for 148 billion euros from the special fund, while a total of 290 billion euros in investment is estimated by 2034.

Criticism and perspectives

While BUND fundamentally welcomes the planned investments in infrastructure, it emphasizes that these must be climate-friendly and additional. There are concerns that parts of the special fund could possibly be used for other purposes to plug budget holes. In the current coalition negotiations between the CDU/CSU and SPD, the specific use of the funds has not yet been determined.

The changes to the Basic Law, which are related to the debt brake, allow certain expenditures such as defense, civil and civil protection as well as investments in infrastructure projects to be handled more flexibly without putting a strain on the debt brake. This could also enable the public sector, companies and the future government to benefit from the advantages of the special fund.

With these measures and the planned increase in funding, the federal government hopes to simultaneously address the challenges in the areas of climate protection and infrastructure and create a sustainable society. However, BUND appeals to those responsible not to waste this opportunity and to pursue a clear focus on climate neutrality.

For more information visit the website of CONVENTION and Taylor Wessing.