Financial Plan of the Climate and Transformation Fund: VDA Statement on Cabinet Draft

"As expected, the cabinet’s draft financial plan for the Climate and Transformation Fund (CTF) reflects the strained financial situation. Yet, alongside numerous consolidation efforts, the coalition still manages to set important priorities.

It is positive for the industry that, despite the need for cost-cutting, the CTF includes significant measures to provide relief on energy costs. In addition to the €1bn increase in electricity price compensation, just under €2.5bn have been earmarked for industrial electricity prices. The government also intends to provide even stronger financial support for the ramp-up of the hydrogen economy in the future.

The picture regarding climate-friendly mobility is mixed. On the positive side, the financial plan through 2030 allocates a total of over €14bn to this area. Battery research—which has recently been bolstered and is crucial for maintaining a competitive base for both development and production—is set to receive further funding, a welcome development that contributes significantly to strengthening resilience. Regarding refueling and charging infrastructure, it will be essential to ensure that sufficient funds remain available in the coming years. This infrastructure is a key factor in the successful ramp-up of climate-neutral mobility.

 Regrettably, however, funding for commercial vehicles and buses is falling victim to these cost-cutting measures. The government is being inconsistent here regarding the expansion of climate-friendly mobility, given the significant potential for climate protection in this very sector. Yet, users rely on a reliable framework to realize this potential. We also view the reduction in grid fee subsidies critically; these subsidies provide essential short-term relief for industry and consumers—and, not least, for e-mobility. Alongside a charging infrastructure that is expanded sufficiently and with foresight, affordable charging rates remain the best way to foster e-mobility.

Questions remain regarding the financing of CTF program expenditures. Despite consolidation measures—particularly concerning smaller programs—the government is planning not only to draw more than €6bn from the reserve but also to achieve savings of €4.4bn across the entire CTF through a so-called 'global expenditure cut.' Ultimately, this could necessitate additional savings across all funding programs. The decision to divert revenue from emissions trading into the core budget remains the wrong approach and undermines public acceptance of CO2 pricing. While a start has been made, the coalition must therefore align the budget even more closely with the challenges of the transformation process during the parliamentary proceedings."