Germany trims climate subsidies as budget plan tightens

Germany’s Finance Ministry says it will scale back funding from the Climate and Transformation Fund (KTF) over the coming years, trimming uncommitted spend by about 30% while keeping programmes alive. The KTF funds climate measures using carbon-pricing revenue and EU emissions trading proceeds, and will also receive €100 billion from a separate infrastructure/climate fund. Planned cuts will affect subsidies for heat pumps, electric vehicles, energy efficiency, and industrial decarbonisation and climate-friendly transport, though exemptions exist for strategically important measures; funding to reduce energy costs will increase next year. The plan aims to help close multibillion-euro budget gaps, drawing criticism from environmental groups who say the fund is being raided for budget balance.