Financial expert calls for compliance with funding commitments for the energy transition in northern Germany

Financial expert calls for compliance with funding commitments for the energy transition in northern Germany

According to a report by www.sueddeutsche.de, the five northern federal states have called on the federal government to honor funding commitments for the energy transition. The heads of government decided on a position paper to strengthen industry and accelerate the energy transition. It is important to note that the budget cuts in the wake of a budget crisis as well as the Federal Constitutional Court ban on the reallocation of loans amounting to around 60 billion euros lead to an uncertain financial situation. Northerners' demands for investment in the energy transition could be at risk without promised funding. This could have an impact on the competitiveness of the affected regions and the implementation of climate goals.

However, the northern countries are well positioned for a successful energy transition and are sticking to their goals. According to the head of the Kiel State Chancellery, Dirk Schrödter (CDU), the creation of a national hydrogen network and the connection between the northern countries are of crucial importance. It is important to emphasize that the implementation of projects from the federal government's climate and transformation fund is at risk because the loans intended for this purpose cannot be reallocated.

The refusal or cancellation of funding commitments could have a negative impact on the climate-friendly transformation of industry in northern Germany. It could lead to the progress already made in reducing CO2 emissions being jeopardized. Companies like Aurubis that have invested in climate-friendly technologies could feel negative economic impacts. This would also undermine the federal government's ambitions to establish Germany as a pioneer in the area of ​​climate-friendly industry.

It is therefore very important that commitments made are kept and that the federal government maintains its support for climate-friendly innovations and projects in northern Germany. A loss of these subsidies could significantly impair efforts to achieve a successful energy transition and endanger the competitiveness of the affected regions.