Government adopts economic plan on climate fund

Germany wants to invest 212 billion euros in climate protection and economic restructuring by 2027.

Berlin (dpa/d.de) – The federal government wants to invest around €212 billion between 2024 and 2027 in climate protection and economic transformation. The funding will be provided jointly with the federal budget from a special fund called the Climate Fund. The fund’s funding focuses on the decarbonization of industry, the promotion of renewable energy and electric vehicles, and the energy-efficient refurbishment of buildings. Deutsche Bahn will also make large-scale investments in its rail network.

The economic plan for the fund, which has now been adopted, stipulates that the fund will be funded mainly by proceeds from European emissions trading and national CO2 pricing revenues in the transport and heating sectors. Companies that trade gasoline, diesel, heating oil and natural gas must buy pollution rights. This CO2 price is intended to encourage people to switch to more climate-friendly alternatives, such as electric cars or heat pumps. CO2 prices for fossil fuels in transport and heating will rise more than previously planned. From 1 January 2024 it will be €40 per ton and in 2025 it will be €50. So far, the CO2 price planned for next year is €35, compared with €30 currently.