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Saxony: Federal support programme does not go far enough

The confederation enables new investment opportunities in future technologies. Saxony's regional minister still sees a significant gap in the program.

Schmidt does not understand why the federation only focuses on 'transformation technologies' during...
Schmidt does not understand why the federation only focuses on 'transformation technologies' during the amendment.

- Saxony: Federal support programme does not go far enough

The Saxon Ministry of Regional Development criticizes that the federal funding program for former coal regions is not sufficiently ambitious. "I'm glad that the federal government has finally heeded the call from Saxony and has now included investment support for businesses in the federal funding program 'STARK'," said Saxony's Minister of State for Regional Development, Thomas Schmidt (CDU).

However, it is incomprehensible why the federal government, in its revision, is only focusing on transformation technologies and not providing unrestricted expansion for our small and medium-sized enterprises. Especially these businesses need urgent support in the current crisis times.

New opportunities for innovative projects

Previously, the federal government had published the revised funding guidelines "Strengthening the Transformation Dynamics and Breakthrough in the Mining Regions and at Coal Power Plant Sites" - also known as "STARK".

These changes aim to enable projects for the production of batteries, solar panels, wind turbines, heat pumps, electrolysers, as well as equipment for CO2 capture, utilization, and storage to be funded. Newly, up to 40 percent of eligible investment costs can be covered. Additionally, investments in some existing funding categories are now also eligible.

The federal government is supporting the coal regions in their exit from climate-damaging coal power with billions in funds. For the Rhine region, politics and energy company RWE have agreed on an accelerated coal phase-out by eight years to 2030. Habeck had said at the beginning of 2023 that an accelerated phase-out in the east must also be agreed upon in consensus.

Despite the focus on transformation technologies in the revised funding program, there's a need to extend support to small and medium-sized enterprises, which are vital and heavily affected in the current crisis. Providing energy solutions, such as investments in batteries, solar panels, wind turbines, or heat pumps, could significantly contribute to their survival and growth.

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