Germany’s €5.31 Billion Climate Fund Delay: A Blow to EU’s Green Ambitions?

Germany's €5.31 Billion Climate Fund Delay: A Blow to EU's Green Ambitions?

Germany to Miss EU Deadline for National Climate Plan Submission

The German government is likely to miss the deadline for submitting its national climate plan to the European Commission, according to a statement from the Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUKN). The confirmation was made in response to a request from the press, reported the Welt and Business Insider.

The German government is currently working on proposals for potential support programs, a spokesperson said, adding that the country will submit its plans in the near future. The national climate plan is linked to billions of euros in funding from the EU’s Social Climate Fund. The plans of the member states were originally due to be submitted to the Commission by June 30, but the new government has yet to agree on concrete support measures for citizens that will be financed from the funds.

Germany is set to receive €5.31 billion in funding from the European fund between 2026 and 2032, according to a draft submitted by the Federal Ministry of Economics to the German Bundestag’s economic committee, reported the Welt. The country must also provide an additional €1.77 billion in “national co-financing.” The EU Social Climate Fund is “performance-based” meaning that the total sum of around €7.1 billion will be financed only once the program is successfully implemented, with EU funds flowing to Germany only after the program’s success.

The BMUKN also stated that the flow of funds is not tied to the submission of the plans, but rather to the successful implementation of the program.

Michael Kellner, the economic policy spokesperson for the German Greens in the Bundestag, criticized the delay, saying, “The climate social plan is now overdue. The government should no longer waste time.” Kellner called for an early submission of the plan, arguing that this would enable the support to be provided earlier, for example, in energy savings or the use of electric vehicles for people with low incomes. He also demanded targeted support for electric vehicles in rural areas with lower incomes and a socially graded support for energy-efficient renovations.