Germany cuts funding for climate action

Recent cuts to the German government’s budget are likely to make it impossible to meet climate and energy commitments. Critics say this casts the EU’s largest economy in a negative light, particularly as the cuts come during the annual COP climate conference.

The decision to cut the budget for climate action funding has triggered a wave of outrage among environmental organisations, some politicians and academics. The news was reported by Euractiv.

At a time when developing countries are calling for greater support at the ongoing COP conference, critics say Berlin risks undermining trust at a crucial moment for international climate cooperation. Germany has long been regarded as a pioneer in international cooperation and the financing of development projects. The government’s decision during Friday’s budget talks will lead to massive cuts in funds earmarked for the Development Ministry. It is responsible for disbursing most of the 6 billion euros Berlin has pledged to spend each year on climate action financing worldwide.

Ute Sudmann, a finance specialist at the NGO Germanwatch, said that as the COP30 conference in Brazil enters its second week, the drastic cut to the climate finance budget is a “fatal signal” to other countries. Oxfam, for example, called the move a “looming betrayal” of developing countries. Even in the most optimistic scenario, Oxfam estimates that total climate finance next year is unlikely to exceed 5.3 billion euros. The amount will then continue to decline.

The government’s budget proposal, agreed after a 15-hour marathon of talks, cuts funding for the Development Ministry by approximately 1.5 billion euros. This makes it practically impossible for Germany to meet its long-standing annual commitment of 6 billion euros towards the global climate finance goal of 100 billion euros in total. This retreat comes despite wealthy countries agreeing at last year’s COP29 in Baku to triple climate finance to 300 billion euros by 2035. This year’s COP30 talks are also strongly focused on increasing climate finance. Former German climate envoy Jennifer Morgan noted that countries are now considering tripling adaptation finance targets by 2030 or 2035, but stressed that “a target without funding is not enough”.