- Germany commits €211.8B to decarbonization via climate fund (2024-2027)
- Funding emphasises e-mobility, charging networks, CO2 pricing increase
- “Special Assets Climate and Transformation Fund” drives innovation and neutrality
Germany tackles climate change head-on with a huge funding boost from 2024-2027
Germany’s Federal Cabinet has given the green light to the draft of the “Special Assets Climate and Transformation Fund” (KTF) business plan for 2024 through 2027.
This move underscores the nation’s commitment to tackling climate change and transforming its industries. The KTF’s primary goal is to support the energy transition and climate protection initiatives. Details emerging from the plan shed light on funding for emobility projects and an increase in the CO2 price.
A staggering €211.8 billion allocated between 2024 and 2027
The allocation for 2024 alone stands at €57.6 billion, with a notable €4.7 billion specifically designated for advancing emobility. This funding includes the expansion of crucial charging infrastructure. The funding specifically for emobility projects will grow to an estimated €13.8 billion by 2027.
The KTF plays a pivotal role in realizing Germany’s energy and climate policy objectives. Its scope covers various areas, including retrofitting, industrial decarbonisation, renewable energy growth, and charging networks.
Additionally, the fund will contribute to developing the hydrogen economy and, in the future, support semiconductor production. The latter is deemed vital for climate-neutral technologies and Germany’s transition toward climate neutrality.
“With the KTF economic plan, we are promoting innovations in Germany as a business location. We are laying the foundations so that future opportunities can arise from decarbonisation and digitisation. We are shaping the transformation to be technology-neutral.”
Christian Lindner, Federal Finance Minister
Operating sustainably, the KTF generates around €19.1 billion from European emissions trading and national CO2 pricing. This income contributes to the budget and to increasing the national carbon price, which is set to rise to €40 per tonne by January 2024. Subsequent increases are projected, reaching €85 per tonne by 2027, encouraging cleaner practices and a greener future.
Germany’s advancement towards carbon neutrality is leading the way for the rest of the world. Faith in the emobility sector and innovative technologies is essential, and seeing it so clearly demonstrated by a government organisation is refreshing. We’ll be following the climate fund’s progress closely over the next three years.