overview
The industrial electricity price, the promotion of electric cars or the expansion of the railway – numerous projects are being put to the test due to the ruling on the climate and transformation fund. An overview.
With its ruling on the Climate and Transformation Fund (KTF), the Federal Constitutional Court overturned the federal government’s budget planning. The Karlsruhe judges decided last week that 60 billion euros in unused credit authorizations for the fight against the corona pandemic could not be moved to the KTF. The financing of numerous traffic light climate and industrial policy projects is now in jeopardy.
Industrial electricity price
The so-called electricity price compensation – a relief for particularly energy-intensive companies from the costs of the CO2 price – should be paid for from the KTF. At least 2.6 billion euros were earmarked for this from next year. However, the agreed reduction in electricity tax for the manufacturing sector is not affected because the expected shortfall in revenue was recorded in the regular budget.
Chip factories
The Federal Ministry of Economics wants to massively support semiconductor manufacturers in Germany and had planned funds from the KTF for this purpose – around four billion euros for 31 projects by German companies. Legally binding funding notices have already been issued in 15 cases, meaning these companies are assured of funding, while the others have to worry.
Also in question are the billions in subsidies for the establishment of chip factories by the Taiwanese group TSMC in Dresden and the US manufacturer Intel in Magdeburg.
Green steel
The situation is similar in the area of steel and hydrogen: the KTF billions were intended to support 45 companies in converting their production processes to the new energy source. Six projects, including the Essen-based industrial group Thyssenkrupp, have already received funding notices and are therefore off the hook.
Investments have already been made in 25 others in consultation with the government, but state funding is no longer certain. Particularly large projects at risk are the decarbonization of the steelworks of Saarstahl in Saarland and ArcelorMittal in Bremen and Eisenhüttenstadt.
Batteries for electric cars
Subsidies for the construction of battery cell factories should also be financed from the KTF. A prominent example is the planned plant of the Swedish manufacturer Northvolt in Heide, Schleswig-Holstein. A funding decision has not yet been issued because the EU Commission has not yet given the green light.
Climate protection agreements
With this instrument, the Federal Ministry of Economics wants to protect the economy as a whole and especially medium-sized businesses in structurally weak industrial areas such as the Ruhr area from unexpected price fluctuations. In order to create incentives for climate protection, the allocation of funds is based on an auction principle: the contracts are awarded to companies that save a particularly large amount of CO2 with relatively little financial outlay. But you may not receive anything at all.
Elimination of the EEG levy
For a long time, the promotion of renewable energies was co-financed by electricity consumers through the so-called EEG surcharge. In the wake of the energy crisis, the levy was abolished as a relief measure. It was replaced by funds from the KTF.
E-car funding
The environmental bonus for purchasing an electric car has also come from the KTF since last year. If the subsidy were to disappear in the future, it would be unfortunate for consumers if they have already ordered their car and planned for the subsidy. According to the Ministry of Economic Affairs, “the decisive factor for the funding” is the date of the funding application, “which requires vehicle registration” – but there are usually months between ordering and registration.
Renovation of Deutsche Bahn
The KTF has budgeted four billion euros for the rail infrastructure for the coming year alone, and by 2027 it will be 12.5 billion euros. According to a report by “Spiegel”, Federal Transport Minister Volker Wissing (FDP) even fears a financing gap of 25 billion euros. Accordingly, the first of the general renovations planned for 40 sections of the route is already on the brink: In the second half of 2024, the so-called Riedbahn from Frankfurt to Mannheim is actually scheduled to be completely closed and overhauled.
Building Energy Act
Also known as the “Heating Act”. The funds for new heating systems and energy-efficient renovations (federal funding for efficient buildings – BEG) come from the KTF. When Federal Finance Minister Christian Lindner imposed a budget freeze as a result of the Karlsruhe ruling, he explicitly excluded these subsidies. On Monday evening, however, the Ministry of Finance imposed an even more extensive spending freeze, which may also affect BEG funds.
Source: AFP