Saving on climate protection? Klingbeil stands against expert warnings!

Saving on climate protection? Klingbeil stands against expert warnings!

In the spring of 2023, Friedrich Merz secured the financial basis for his future chancellorship through a fundamental change to the Basic Law, for which he needed the approval of the Greens. They agreed under certain conditions: 500 billion euros in special funds should be used exclusively for additional investments, a certain quota from the core budget must be invested beforehand, and 100 billion euros should also flow into the Climate and Transformation Fund (KTF). This decision is of central importance given the challenges of climate change and the necessary transformation of Germany.

However, there are concerns about the financial resources available for climate protection. SPD Finance Minister Lars Klingbeil could possibly make savings on climate protection. A circular from the Ministry of Finance suggests that titles from the budgets of the Ministry of Economics, Transport and Research should be moved to the KTF. This could result in cuts in these departments. However, the Ministry of Finance emphasizes that there will be no misuse of the funds and has announced “record investments” for 2025.

The role of the climate and transformation fund

The KTF, which was founded in 2011 as the “Energy and Climate Fund”, has honored the new name since 2022 and focuses on supporting measures for Germany's climate-neutral transformation. The economic plan for 2025 provides for income and expenditure of 25.47 billion euros. The KTF's main sources of income are CO2 pricing with 15.41 billion euros and the auctioning of emissions certificates, which brings in 6.74 billion euros. Planned spending for 2025 includes 14.36 billion euros for climate-friendly heating, 1.58 billion euros for the mobility transition and 3.3 billion euros to support industry. ZDF reports that the KTF also promotes the expansion of the hydrogen economy and contributes to the decarbonization of the industry.

However, experts warn that if climate protection is not addressed in a long-term and substantial manner, the KTF could miss its goal. Achim Truger, member of the Economic Advisory Council, criticizes the budget situation, which is made more difficult by Christian Lindner's tax cuts and the obligation to comply with the debt brake. Lawyer Roda Verheyen warns that less money for climate protection is not legally permissible, based on the Karlsruhe resolution of 2021. Experts are calling for at least 0.7 percent of GDP per year for climate protection in order to achieve climate neutrality by 2045. Daily Mirror

Criticism and scope for action

In order to achieve the climate goals, a total expenditure of 2.32 to 2.62 trillion euros will be necessary by 2045, of which the state will probably have to cover around 800 billion euros. Experts estimate that the public sector would have to invest an additional 37 to 52 billion euros annually. The breakdown of KTF expenditure shows that substantial funds will be needed for climate protection in the coming years.

The Greens approved the special fund after some negotiations, but with demands to prioritize climate protection. Christoph Bals from Germanwatch demands that at least 10 percent of KTF spending should flow into international climate financing. These demands illustrate the need for transparent and targeted use of the funds provided in order to avoid potential “client gifts” that could burden the KTF.

Overall, the federal government is faced with the challenge of consistently using the special fund for the benefit of climate protection. Only through effective planning and execution can the KTF become the central instrument of Germany's climate-neutral transformation.