Federal government approves cuts to climate fund and draws sharp criticism

At the same time, 2.7 billion euros from 2027 emissions trading revenues are to flow not into the KTF but into the general federal budget. By 2030, the government wants to reallocate more than 13 billion euros in total from the fund into the core budget to close gaps there.

Which programs are affected

According to the Federal Ministry of Finance, programs are to be "more targeted and flexible" in the future. There was talk of an "intelligent lawnmower" method, with which spending is to be measured rather than radically cut. For uncommitted discretionary funds, a 30 percent cut is envisaged in principle.

In concrete terms, this means that less money will flow next year, for example for measures related to urban energy refurbishment, energy research, energy efficiency consultations, as well as subsidies for commercial vehicles with alternative drives, for the purchase of buses with alternative drives, and for alternative drives in rail transport. Funding programs for the switch to new heating systems or electric cars are also being cut, according to cabinet sources.

It is already known that subsidies for the installation of heat pumps and other climate-friendly heating systems will be lower in the coming years. However, subsidies for climate-friendly heating are to be more strongly graduated according to income, so that families and people on lower incomes receive more support.

Exempted from the cuts are measures such as the industrial electricity price, designed to relieve energy-intensive companies. Programs for expanding charging infrastructure and for promoting electric cars are also to be continued, albeit at a reduced scale.

Criticism from the Greens and environmental groups

From the 500-billion-euro special fund for infrastructure and climate neutrality, 100 billion will go to the Climate and Transformation Fund in the coming years, 10 billion euros per year. Nevertheless, more than 40 billion euros will flow through the KTF in 2027 overall.

The opposition is responding with sharp criticism. Andreas Audretsch, deputy parliamentary group leader of the Greens, told dpa: "Friedrich Merz und Lars Klingbeil versündigen sich an der Zukunft. 2,7 Milliarden weniger für Klimaschutz allein in 2027. Bis 2030 sollen über 13 Milliarden Euro aus dem Klima- und Transformationsfonds zweckentfremdet und in den Kernhaushalt umgelenkt werden. Merz und Klingbeil täuschen und tricksen, um selbst gerissene Löcher im Haushalt zu stopfen - auf Kosten des Klimas, mitten in der Klimakrise."

What happens next

The climate protection organization German Zero spoke of a "Selbstbedienungstopf für Industriesubventionen". Environmental groups had accused Finance Minister Lars Klingbeil (SPD) of plundering the KTF. The federal government points out that it also contributes to climate protection through the core budget and that the reallocation serves fiscal consolidation.

Before the KTF budget plan can take effect, the Bundestag must still approve it. The last sitting week in November is scheduled for this. Subsequently, the Bundesrat is to vote on the plan on December 18. Prior to that, the draft will be debated in the specialist committees of the Bundestag, above all in the budget committee.