Germany boosts climate fund

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BERLIN—The German government agreed on Aug. 9 to boost its special fund for climate change-related investments significantly in the coming years, as it races to speed up its green transition.

The “climate and transformation” fund will amount to 211.8 billion euros ($232.6 billion) between 2024 and 2027. Earlier, the government had planned 177.5 billion euros for the period 2023-2026, the economy ministry said.

The fund will be used for investments to mitigate and adapt to climate change, including decarbonizing industry, improving rail transport and greening buildings.

There had been an urgency for boosting the green fund following higher energy prices and growing climate subsidies provided by other countries like the United States risked drawing industries away from Germany.

“We are creating the basis for decarbonization and digitalization which will create opportunities for the future,” said Finance Minister Christian Lindner.

Created in 2010, the fund began with just some hundreds of millions of euros but was significantly boosted from 2021, after Chancellor Olaf Scholz of the Social Democrats took power along with his coalition that included junior partners the Greens and the liberal FDP.

The fund is not part of the government’s regular budget and is therefore not subject to rules on debt limits.

Among the investments to be made in the coming years will be 18.6 billion euros in developing the hydrogen industry, which Berlin is hoping will help in its transition to renewables.

Berlin will also plough 12.5 billion euros in the rail network between 2024 and 2027.

Electric automobiles and microelectronics will get financing reaching 4.7 billion euros and 4.1 billion euros respectively. —AFP