Climate funds under pressure: money for fossil projects instead of climate protection?

Climate funds under pressure: money for fossil projects instead of climate protection?

The Climate and Transformation Fund (KTF) is currently the focus of the debate about financing climate protection projects. A new short study by the Ecological-Social Market Economy Forum (FÖS) on behalf of Green Planet Energy shows that there is a risk that the KTF will be used for financing fossil projects and cheap natural gas. This development is a direct result of weak award criteria and poor planning by the federal government, such as Sunny side reported.

The study analyzes various aspects of the use of funds from the special fund for infrastructure and climate neutrality. In particular, the need for clear evaluation criteria for an effective, climate-friendly use of funds is emphasized. Another key finding of the investigation is that the additional 10 billion euros per year from the special fund are viewed as insufficient for the necessary climate protection investments.

Challenges caused by fossil subsidies

The study goes on to say that fossil fuel subsidies are viewed as an expensive mortgage for future generations and should have no place in the climate fund. Projects such as the financing of the gas storage levy contradict the objectives of the special fund and the KTF. The promotion of heat pumps, on the other hand, is highlighted as a positive example of effective climate protection measures. These technologies achieve significant greenhouse gas savings in the building sector.

In 2023, investments in heating technology amounted to 8.8 billion euros, which had a positive impact on value creation (7.2 billion euros) and employment (around 108,000 full-time positions). In contrast, subsidizing new natural gas power plants is classified as counterproductive in terms of climate policy, while funding for hydrogen-capable power plants is only considered useful to a limited extent, in the case of their use with green hydrogen.

Renewable energy as a solution

Renewable energy, including wind power, solar energy and hydropower, is considered an environmentally friendly option in the fight against climate change. An important aspect is that CO2 emissions must be considered across the entire life cycle, from production to transport to installation and maintenance, such as NatureOffice emphasized.

Compared to fossil fuels, renewable energy has lower upstream emissions. Fossil fuels such as coal, oil and gas are the main causes of CO2 emissions. These arise not only during combustion, but also in the previous phases - during extraction, transport and finally combustion. Coal-fired power plants, for example, emit around 820 g CO2/kWh, while natural gas produces around 450 g CO2/kWh. Fossil power plants produce a total of 900 to 1,200 g of CO2 equivalents per kWh.

In contrast, various renewable energy sources are characterized by lower life cycle emissions:

The current challenges surrounding the Climate and Transformation Fund illustrate the urgency of a clear and consistent use of funds, which is more strictly tied to climate protection criteria and should be regularly evaluated.