Only 72 percent of the available funds from the Climate and Transformation Fund (KTF) were utilized last year. According to a new KTF report published by the Federal Ministry of Finance, and cited by the “Handelsblatt” (Thursday edition), approximately ten billion euros budgeted under the KTF went unused.
In total, the federal government expended 26.6 billion euros from the fund, even though 36 billion euros were planned. The vast majority of these ten billion unused euros relate to the “Federal Funding for Efficient Buildings” (BEG) program. This scheme, which allows homeowners to receive subsidies for changes such as installing heat pumps, represents the largest portion of the KTF. Of the 12.9 billion euros allocated for this program in 2025, 2.5 billion euros fewer than planned were actually deployed. Furthermore, 1.8 billion euros remain unused in the subsidy program for microelectronics.
Contextually, the usage rate for the KTF stood at 85 percent in 2024, which was attributed to a special effect. However, in 2023, the utilization rate was significantly lower at 56 percent.
Separately, it has recently been reported that the new Infrastructure and Climate Protection Special Fund (SVIK) exhibits similar issues. Last year, the government drew only 24 billion euros from SVIK, falling short of its planned allocation of 37 billion euros.
