Germany will invest 177.5 billion euros ($180 billion) over the next four years to accelerate its shift towards a cleaner and more independent economy. Furthermore, the investment will come from carbon pricing, thus not impacting the federal budget.
“This special climate and transformation fund is one of the most important financing instruments for climate protection and economic modernization in our country,” says Finance Minister Christian Lindner.
Largely dependent on Russia for energy supplies, Germany will massively invest in the expansion of renewables and the development of the hydrogen sector. The country also plans on cutting harmful industrial emissions and promoting electric vehicles. Through 2026, a total of 56.2 billion euros will be allocated to making buildings more energy efficient. The expansion of the hydrogen sector and the reduction of harmful industrial emissions will be granted 20 billion euros. As for the improvement of heating systems’ efficiency, it will benefit from a 3.8-billion-euro investment, and for the promotion of energy-efficient systems and processes, 3.4 billion euros are expected.