Members of Germany’s governing coalition are voicing strong opposition to a proposed budgetary shift that could significantly impact climate protection funding. A draft from the Finance Ministry suggests that the Climate and Transformation Fund (KTF) – designed to finance crucial climate initiatives – may be used to cover potential costs incurred if Germany fails to meet its EU climate targets in sectors like transportation. This could involve the purchase of costly carbon certificates to offset exceeding emissions limits.
Andreas Jung, deputy parliamentary group leader for the CDU/CSU, stated that diverting funds from the KTF is unacceptable, though he expressed confidence that a resolution would be found during ongoing budget negotiations. He emphasized the need for a collaborative solution within the coalition.
Mark Helfrich, climate policy spokesperson for the CDU/CSU, argued that financial penalties resulting from insufficient climate action should not be absorbed by the very fund intended to drive climate protection measures. He anticipates intense debate on the matter, insisting that any such costs must be covered through alternative budgetary sources.
Thomas Heilmann, head of the CDU/CSU’s Climate Union, described the proposal as fundamentally flawed, emphasizing that the KTF is designed for proactive investment in climate initiatives, not for retroactively financing failures to meet objectives.
Social Democrats (SPD) share similar concerns. Jakob Blankenburg, climate policy spokesperson for the SPD parliamentary group, stated that the KTF is Germany’s key instrument for achieving climate neutrality and utilizing it for penalty payments would constitute a misuse of funds.
Nina Scheer, energy policy spokesperson for the SPD, suggested maintaining the financing of carbon certificates from the core federal budget, while reiterating that investing directly in climate protection is a more effective strategy than relying on the purchase of certificates.
