Federal Audit Office sees climate fund under pressure

BERLIN/BONN (dpa-AFX) - The financing of climate protection measures through the federal government's Climate and Transformation Fund (KTF) is at risk, according to the Federal Court of Auditors. "The Federal Court of Auditors sees significant risks for the KTF as a reliable financing instrument," states a report by the Court of Auditors to the Bundestag's Finance Committee, reported by the "Handelsblatt" newspaper and also obtained by the German Press Agency (dpa).

According to the report, the auditors see "little financial scope for action" for the fund, which is the government's central instrument for climate protection and the success of the energy transition, for 2025 and the following years.

The Court of Auditors further criticizes the fact that it is "not sufficiently clear" to what extent and with what use of budgetary resources the KTF contributes to reducing greenhouse gas emissions. The KTF report for 2024 only indicates the amount of greenhouse gas savings "per euro of funding paid out" for 38 of 190 funding measures. The overall dimension of the savings, and thus the climate protection impact of the measures, therefore remains unclear.

Experts see little room for maneuver despite 100 billion euros extra

In their assessment, the experts also factor in the €100 billion that the new federal government plans to provide from its special fund for the KTF in ten annual tranches until 2034. Despite these additional funds, there is only "limited room for maneuver," they say. For example, the revenues planned for 2025, €36.7 billion, are "significantly lower" compared to the previous year. At the same time, these revenues are offset by "significant pre-commitments from commitments already entered into" of around €25 billion.

In addition, the government is planning to spend billions on compensation payments to coal-fired power plant operators and to finance the gas storage levy. The commitments for 2025 threaten to "consume a significant portion of the revenue," it continues.

Left Party leader calls for reform of the debt brake

Left Party leader Ines Schwerdtner sharply criticized the finding. The €100 billion from the special fund creates "no real added value," she told dpa. If the new federal government is serious about climate transformation, it must "be honest and finally reform the debt brake," she demanded. Only then will sufficient funds be available for the necessary investments in the long term.

According to the Federal Ministry for Economic Affairs and Energy, the KTF is the key instrument for climate protection and the energy transition in Germany. Private households also receive funding from this special fund for projects such as window replacement or facade insulation. It also finances climate-friendly replacement of heating systems./faa/DP/zb