German Greens criticize climate fund cut

The Greens in the German Bundestag have sharply criticised the federal government's plan to divert €2.7 billion from the Climate‑Transformation Fund (KTF) into the next year's budget.

Green spokesperson for climate policy Lisa Badum told the Redaktionsnetzwerk Deutschland that “the climate fund is not a self‑service store for the Merz government, but serves the future‑proof transformation of our country.” She warned that “climate protection must not be sacrificed for the next austerity package, as the downstream damages will cost us many times what is apparently saved now.”

Finance Minister Lars Klingbeil (SPD) indicated that about half of the expected 2027 revenue from the European Union Emissions Trading System, which largely finances the KTF, would be re‑allocated to other budget items. The Greens argue this threatens Germany’s climate goals and would lead to higher long‑term costs.