Klingbeil is planning an investment boost: 500 billion for climate and infrastructure!

Klingbeil is planning an investment boost: 500 billion for climate and infrastructure!

The SPD leader and Finance Minister Lars Klingbeil has announced a comprehensive investment boost for Germany, which will be financed from the core budget as well as the special fund and the Climate and Transformation Fund (KTF). This was on May 28, 2025 Pharmacy Adhoc presented. Klingbeil explained that investments should be increased by almost 50 percent compared to the previous year. A total of 150 billion euros are earmarked from the special fund by 2029, which is set aside for 500 billion euros with a term of twelve years and is primarily intended for infrastructure and climate protection projects.

The draft budget, which is to be approved by the cabinet on June 25th, also contains a law to implement the special fund. Critical voices, particularly from the Greens, express concerns that the special fund will only be used to “fill” budget holes. However, Klingbeil rejected these allegations and reiterated the need to increase the investment rate in the core budget to at least ten percent, which is expected for 2025 and 2026.

Criticism and requirements

Business associations are calling for faster planning and approval procedures to ensure the effectiveness of the special fund. The KTF, which was originally founded in 2011 as an “energy and climate fund”, is to be strengthened with ten billion euros annually. This fund is financed by income from emissions trading and national CO2 pricing. The economic plan for 2025 envisages income and expenditure of 25.47 billion euros, with income from CO2 pricing and the auctioning of emissions certificates serving as the main sources ZDF.

The planned expenditure for the KTF includes 14.36 billion euros for buildings, 1.58 billion euros for the mobility transition and 3.3 billion euros to support industry due to rising electricity prices. These investments are also intended to promote the expansion of the hydrogen economy and the decarbonization of industry. Income and expenses of 58.22 billion euros are planned for 2024, of which 29.01 billion euros come from reserves.

Conflicting voices from politics

The Greens approved the special fund after negotiations, placing more emphasis on climate protection. However, they are renewing their criticism of the plans because they fear a redistribution of up to 50 billion euros annually for consumer spending. The Left also sees Klingbeil's announcements as inadequate and describes them as a sham.

The Bundestag has also approved a billion-dollar debt package, which, however, cannot close the financing gap but is to be spread over a period of twelve years. Experts estimate that the public sector would have to invest 37 to 52 billion euros more annually to achieve the desired climate neutrality by 2045. The estimates for the costs of this transformation are between 2.32 and 2.62 trillion euros, with the state having to cover around 800 billion euros.

However, there is also positive support. A survey shows that 50 percent of those surveyed consider the special fund of 500 billion euros to be correct. However, it remains unclear exactly how the billions will be used and whether they will simply end up as “client gifts”.