Germany Plans $3.5 Billion Support for Energy FundStefan Nicola
Germany plans to use 2.59 billion euros ($3.5 billion) in federal money to save an energy and climate fund suffering from low prices for carbon in Europe.
Chancellor Angela Merkel’s government seeks to divert the cash from the budget to the EKF fund from next year through 2017, it wrote in a bill. The EKF, designed to be financed with proceeds from carbon-permit sales, has failed to reap sufficient income after prices for the allowances dropped to about 4 euros a metric ton this year, the government said.
The fund is part of Germany’s 550 billion-euro plan to wean the country off nuclear energy and more than triple the share of renewables to account for 80 percent of the power mix. It’s aimed at financing climate-protection programs and research into renewables, energy storage and power-grid technologies as well as energy efficiency and electric mobility.
“The income side of the EKF needs to be strengthened to secure financing for the energy switch’s programs,” the government wrote in the bill that was first reported today by the parliament’s official newsletter.