Tax & Spend

Germany Boosts Climate, Chips Fund to €212 Billion in Green Push

Cabinet set to to approve increase in investment pot Wednesday
Mechanism designed to help government reach climate targets

The mechanism will fund investment in semiconductor production and expansion of railway infrastructure, among other things.
Photographer: Liesa Johannssen-Koppitz/Bloomberg

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By Kamil Kowalcze

August 9, 2023 at 6:38 AM UTC

Updated on

August 9, 2023 at 11:22 AM UTC

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Chancellor Olaf Scholz’s government on Wednesday approved a top-up of Germany’s special Climate and Transformation Fund by more than €30 billion to about €212 billion ($233 billion) for the period 2024 through 2027.

The mechanism, which is known by its German acronym KTF and is not part of the regular federal budget, is designed to help speed Germany’s transition to an emissions-free economy. It will pay for climate-protection measures, such as financial aid for the replacement of fossil-fuel boilers with heat pumps, as well as investments in semiconductor production and expansion of railway infrastructure, among other things.