German government approves budget of 212 billion euros for climate and transformation fund

As reported by Euractiv, the German government approved a huge budget for its flagship Climate and Transformation Fund (KTF) on Wednesday, 9 August. The 212 billion EUR fund is intended to support projects in areas including building renovation, industrial decarbonisation and renewable energy development between 2024 and 2027. The fund will be partly financed by revenue from the sale of emissions allowances, both under the EU ETS and under the national system covering the transport sector and smaller sources outside the EU ETS in the heating sector.

As Euractiv points out, the fund is set to be one of the German government's key tools for helping it meet the country's highly ambitious climate targets. A total of 57.6 billion EUR has been earmarked for various projects in 2024 alone.

“With the KTF's economic plan, we are supporting innovation and underscoring Germany's importance as a business location. We are laying the foundations to seize future opportunities related to decarbonisation and digitalisation,” German Finance Minister Christian Lindner said in a statement following approval of the budget.