60 billion euros have been injected by the German government to combat climate change.
Officials say the investment is part of a new supplement budget that will “supercharge” the country’s climate and transform fund, and encourage a shift to a green economy.
The budget, which was unanimously passed by the cabinet of Chancellor Olaf Scholz, will channel billions in euros of unused federal debt this year into future green spending.
In their coalition agreement, the Social Democrats (SPD), Greens (pro-spending), and more conservative Free Democrats (FDP), all of centre left, agreed to this manoeuvre. The party can take advantage of the temporary, related to the pandemic, suspension of borrowing limits.
The coalition plans to use the funds for critical public investments in climate mitigation measures, including better insulation of homes and charging points to electric vehicles.
Along with the debt-financed 60billion euro, the government will channel 18billion euros of tax revenue, mostly from eco taxes, and the CO2 emission trading system, into its climate transformation fund next year.