Berlin Raids $34 Billion From Climate Fund For Budget Relief
The move consolidates public spending under Chancellor Merz, cutting heat pump and EV subsidies for all but lower-income people.
by Kevin Killough July 16, 2026, 11:40 AM
Germany plans to cut $34.2 billion from its climate and transformation fund through 2030. Those resources will be shifted to the federal government as Chancellor Friedrich Merz’s administration looks to consolidate public spending. [some emphasis, links added]
The climate and transformation fund provides, among other things, subsidies for heat pumps and electric cars. Under the cuts, these subsidies will only be available to lower-income people, Bloomberg reported.
The government has argued that a subsidy program it launched to lower electricity prices for energy-intensive industries will justify cuts to the climate and transformation fund.
The fund receives revenue from the country’s national emissions trading system. The program requires companies receiving the subsidies to invest in making their production more climate-friendly.
https://climatechangedispatch.com/germany-climate-fund-cuts-budget/
