"Evaluation: Decrease in Electricity Rates from Specific Resources Disagrees with Constitutional Standards"
In the midst of the ongoing climate crisis, the usage of funds from the Special Fund for Infrastructure and Climate Neutrality (Zukunftsfonds Klima & Infrastruktur) has come under scrutiny. Dr. Roda Verheyen, a renowned climate lawyer, has concluded that the planned reduction of electricity prices from the Special Fund is unconstitutional.
The Special Fund, worth 500 billion euros, was created to drive investments in infrastructure and climate change mitigation. The Federal Ministry of Economy and Climate Protection, led by Robert Habeck (BMWK), oversees the administration and distribution of these funds.
Dr. Verheyen's opinion, commissioned by the WWF, suggests that the Special Fund should be consistently used for effective climate protection. She argues that promoting hybrid cars or the current new building standard EH55 from the Special Fund would be a waste of money. Instead, she emphasises the importance of every euro being invested in additional climate protection measures.
The Federal Ministry of Finance intends to use funds from the Special Fund to finance falling electricity prices. However, according to Dr. Verheyen, the Special Fund is intended exclusively for additional investments. The reduction in electricity prices is not considered an additional investment in her opinion.
The government is also considering shifting investments from the Climate and Transformation Fund (KTF). However, the use of the Climate and Transformation Fund for reducing electricity prices is legally questionable, as per Dr. Verheyen's opinion.
In light of these concerns, Dr. Verheyen proposes a climate protection mandate in the establishment law of the Special Fund. She suggests that this mandate should be decided as part of the Federal Budget 2025. The Special Fund, as outlined in the opinion, can be used constitutionally and effectively for climate policy.
Michael Schäfer, CEO of GermanZero, agrees with Dr. Verheyen's stance. He emphasises the importance of every euro of the Special Fund being invested in additional climate protection investments. He considers Dr. Verheyen's opinion an important guideline for the fiscal and climate policy of the coming years.
The government must distance itself from inefficient projects from the coalition agreement to direct more billions from the Special Fund into efficient climate protection investments, according to Schäfer. Every euro of the Special Fund, according to Schäfer, must be additionally and invested in investments.
For climate change mitigation efforts, 2025 is a crucial year. Many funding programmes and investment decisions must be made in the coming months to ensure Germany meets its climate targets by 2030. The amount of funds allocated from the Special Fund in the initial 100 days, like 2025, is central to the success of Germany's climate policy in this legislative period.
Note: Please note that should there be any personnel changes in the cabinet, the name of the Minister may change. Please check current news sources for the latest developments.
- The responsible Minister is Robert Habeck (BMWK). The decision on how many billions of Euros from the Special Fund are allocated for effective climate protection measures in the first 100 days (like 2025) is central to the success of Germany's climate policy in this legislative period.
Background: - Ministry: The Federal Ministry of Economy and Climate Protection (BMWK) is responsible for climate change mitigation and the economy in Germany, since some of the responsibilities of the former Environment Ministry were transferred to this new department in December 2021. - Special Fund: The aforementioned Special Fund was created in the Federal Budget under the Ampel Coalition (SPD, Greens, FDP) to drive investments in infrastructure and climate change mitigation. The administration and distribution of these funds are led by the BMWK under Robert Habeck. - Time Frame: The 100-day evaluation usually refers to the first 100 days of a government formation or a new legislative process, during which important decisions for climate financing are supposed to be made.
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