Under the leadership of the German Federal Ministry of Finance, the Federal Cabinet has adopted the introduced legislative proposal for the government draft of the budget for the special Climate and Transformation Fund (CTF) for 2024 as well as the general budget until 2027.
The programme expenditure in the 2024 budget amounts to EUR 57.6 billion. Of this amount, EUR 47.4 billion are intended for programmes of the German Federal Ministry of Economic Affairs and Climate Action (BMWK). For the years 2024 to 2027, the German Federal Government plans to make investments totalling EUR 211.8 billion through the CTF. In this way, the CTF will continue to make an important contribution to achieving Germany’s energy and climate policy targets. The same applies to the development and industrial location of future technologies, and thus to the transformation towards a sustainable and climate-neutral national economy.
The expenditure priorities of the BMWK in the CTF budget reinforce this objective and drive important investments into future technologies, building production capacities and climate protection.
Specifically, the following expenditure priorities exist, all for 2024:
- Funding for efficient buildings, including social cushioning of the new Building Energy Act (approximately EUR 18.8 billion)
- Funding the German Renewable Energy Sources Act EEG (approximately EUR 12.6 billion)
- Transformation programmes in the field of microelectronics, building production capacities for transformation technology and raw materials (approximately EUR 4.1 billion)
- Ramping up the hydrogen economy including the hydrogen strategy for foreign trade (including H2Global) and the decarbonisation of industry (approximately EUR 3.7 billion)
- Compensating for electricity prices to relieve companies of the costs arising from the European Union Emission Trading System (approximately EUR 2.6 billion)
- Funding for electromobility at the BMWK including battery cell production (approximately EUR 1.6 billion)
- Energy efficiency in industry and trade (approximately EUR 850 million)
- Transformation of heating networks (approximately EUR 800 million)
For microelectronics, funding which was previously distributed to various federal budget titles will now be centralised in the CTF. This will improve the component of Germany’s transformation towards a sustainable and climate-neutral national economy in the CTF in future and will ensure that this key technology will come to Germany.
Microelectronics act as an enabler as well as an indispensable basis for completing important transformation processes. Semiconductor products are an essential component and a multiplier for value creation in almost every economic activity in Germany and Europe.
The draft of the budget will be submitted to the German Federal Parliament for parliamentary procedure together with the draft of the federal budget.
As a special fund, the Climate and Transformation Fund is the responsibility and under the jurisdiction of the German Federal Ministry of Finance. The budget management is mainly under the jurisdiction of the German Federal Ministry of Economic Affairs and Climate Action.
