A new report by the Federal Audit Court has raised serious concerns regarding the German government’s ability to meet its climate targets, signaling potential shortfalls in the Climate and Transformation Fund (KTF). The report, submitted to the Bundestag’s Finance Committee and reported by the Handelsblatt, scrutinizes the KTF’s structure and effectiveness as a financing instrument.
Auditors express significant reservations about the KTF’s reliability, stating that the current framework presents considerable risks. Furthermore, the report asserts that the extent to which the KTF contributes to reducing greenhouse gas emissions and the associated budget allocation, remains insufficiently clear.
The KTF was established following constitutional amendments agreed upon by the Green Party, the Christian Democratic Union (CDU) and the Social Democratic Party (SPD), enabling the creation of a special asset of 500 billion euros for infrastructure and climate protection, with 100 billion euros earmarked for existing climate funds. Despite this foundational change, the Audit Court identifies limited financial flexibility for the years 2025 and beyond.
Planned revenue for 2025 is projected at 36.7 billion euros, representing a substantial decrease compared to the previous year. This is compounded by existing commitments from prior years totaling approximately 25 billion euros.
The government’s intention to finance expenditures such as the gas storage levy (3.4 billion euros) and the International Climate Protection Initiative (0.6 billion euros) from the KTF is also highlighted. These obligations threaten to consume a substantial portion of the fund’s income, according to the report.
The findings have drawn criticism, with Ines Schwerdtner, leader of the Left party, describing the financial package as an “almost unsustainable construction”. She argues that the pledged 100 billion euros do not provide additional financial space but are largely pre-allocated, characterizing the process as a “red herring” and calling for adherence to Germany’s debt brake.