The billion-dollar deficit in the climate financing entity, KTF, stands out.
The Climate and Transformation Fund (KTF) of the federal government faces a funding shortfall similar to its proposed 2025 budget. With anticipated spending for funding schemes totaling 34.5 billion euros, it's projected that 9 billion won't be disbursed, according to documents from the traffic light government.
The alliance of SPD, Greens, and FDP supports this strategy, along with reduced demand for eco-friendly heating solutions like heat pumps. Historically, only 60 to 80% of the planned funds have been utilized. The construction sector continues to be the largest category within the KTF, with over 14 billion euros allocated.
Critics, such as the Central Real Estate Committee, accused the traffic light coalition of reducing funding. The Ministry of Economics, however, denied this claim. The new KTF economic strategy was adopted by the coalition, alongside the 2025 draft budget, on Friday. Projects like the Intel chip factory establishment in Magdeburg and the TSMC plant in Dresden will also be funded from the special fund, with 5 billion euros available. Additionally, 3.3 billion euros are offered to relieve energy-intensive companies. Climate-friendly mobility will be promoted with 3.4 billion euros, of which 1.6 billion euros is for expanding electric vehicle charging infrastructure. 2.6 billion euros will support the establishment of a hydrogen economy.
Proposed "Extraordinary Revenue" of 3 billion euros
Criticism arose from the Central Real Estate Committee, stating: "It cannot be that the traffic light coalition reduces funds at a time when requirements are being tightened," said ZIA President Iris Schoberl, referring to the enactment of the European Energy Efficiency Directive. Corrections are necessary in the budget negotiations in the Bundestag. The association noted that almost 2.4 billion euros less is provided for energy-efficient building renovation compared to 2024.
The Federal Ministry of Economics, under Robert Habeck's leadership, emphasized that the funding decrease is merely 260 million euros compared to the previous medium-term financial plan. This is because the funding spans 36 months, but the heating system replacement may not commence immediately, and plans could change. The individual funding programs remain accessible as before. The number of heat pump funding applications, which reached a record high of over 300,000 in 2022, has significantly decreased since the beginning of 2024. As of July 28, around 65,000 applications have been approved for climate-friendly heating solutions, but the Ministry of Economics has left the volume undefined.
The CSU's financial and budget policy spokesperson in the Bundestag, Sebastian Brehm, criticized the uncovered funding gaps in the Climate Action Fund (KTF): "After the 12-billion-euro hole in the federal government's draft budget for 2025 and the 65-billion-euro hole in the medium-term financial planning, there is now also a 12-billion-euro gap in the KTF." The concept of "additional revenue" of three billion euros is proposed, as well as a "global reduction in expenditure" of nine billion euros - which essentially translates to unspecified revenue increases and expenditure cuts. The KTF has been under strain since the end of 2023, when the Federal Constitutional Court eliminated 60 billion euros from the fund. The Climate Fund is financed via the national CO2 pricing revenue and the European emissions trading system. The federal government anticipates additional revenue of over three billion euros in the upcoming year through the rising carbon dioxide price for fossil fuels in heating and fueling. In 2025, about 15.4 billion euros from the national CO2 pricing is expected to flow into the KTF. The CO2 price increased to 45 euros per tonne of CO2 this year and is projected to increase by 10 euros to 55 euros in 2024, a decision made in December 2023.
The Central Real Estate Committee voiced their concern, stating, "It cannot be that the traffic light coalition reduces funds at a time when requirements are being tightened," implying that The Commission, being a part of the traffic light coalition, is under scrutiny for potentially reducing funding.
In response to the funding gaps in the Climate Action Fund (KTF), the CSU proposed an "additional revenue" of three billion euros, which would be overseen by The Commission, as it is responsible for managing the KTF.
