2023-08-10 06:04:39
The German government adopted the budget for its Climate and Transformation Fund (KTF) on Wednesday (August 9), whose objective is to finance the green transition. 212 billion euros will be spent between 2024 and 2027 to support the renovation of buildings, the decarbonisation of companies and support green industry.
The Fund, which is exempt from the usually strict German budgetary rules, has become one of the main tools of the government to finance its major ecological transition projects. For 2024 alone, 57.6 billion euros were allocated to it, i.e. 20 billion euros more than in 2023.
« With the KTF economic plan, we promote innovation in Germany as an economic hub. We are laying the foundations for decarbonization and digitalization [de l’économie] can give rise to opportunities for the future said Finance Minister Christian Lindner.
The Fund aims in particular to finance the energy renovation of buildings, the decarbonisation of industry, the development of renewable energies, or even the production of charging stations.
Created in 2010, the Fund has grown in importance since the new government of Olaf Scholz took office in 2021. To finance the projects envisaged in the coalition agreement (with the Greens and the Liberals), the government transferred €60 billion COVID-19 Fund to KTF in 2021.
The executive finances the Climate Fund partly with revenues from the national and European emissions trading system. The Ministry of Finance expects 19 billion euros in 2024.
Accelerate the green transition
Most of the budget will be spent on building renovations and thermal sieves, with €27 billion earmarked for replacing existing gas and oil heating systems with greener alternatives, such as heat pumps.
The government plans that all heating systems installed following 2024 must be powered by at least 65% renewable energy, which amounts to a de facto ban on boilers running on natural gas. This commitment had led him to the brink of a coalition crisis a few months ago, the Liberal Party having strongly opposed it.
With these 27 billion euros, the government plans to lighten the financial burden on households.
« As Federal Minister of Finance, it is important to me to avoid excessive charges. We thus provide targeted support for the conversion to new technologies said Mr. Lindner.
The Fund will also invest in Deutsche Bahn, Germany’s state-owned rail company, up to €12.5 billion over the coming years to renovate and expand its rail network.
In addition, in 2024, the executive plans to spend 4.7 billion euros for the development of charging stations for electric vehicles and 3.8 billion euros for the development of the hydrogen industry.
Finally, the government plans to further increase its financing of semiconductor projects, to the tune of four billion euros.
TSMC announced Tuesday (August 8) that it would finance the opening of a new microchip factory in Germany, for an amount of 10 billion euros, including five billion euros in subsidies. In June, Intel announced that it would invest 30 billion euros in the country, including 10 billion euros in state aid.
1691652621
#Germany #adopts #billion #budget #Climate #Fund #EURACTIV.com
