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Regional train in Frankfurt: Deutsche Bahn gets a lot of money – but a financing gap is likely to remain

Photo: Helmut Fricke / picture alliance / dpa

With around 57.6 billion euros, the German government wants to promote the development towards a more sustainable economy and way of life. According to a draft, the Climate and Transformation Fund (KTF) will have this volume next year, according to news agencies. The cabinet could therefore decide on the KTF economic plan in a timely manner.

The volume in the draft for next year is around 21.6 billion euros above the target expenditure for 2023. According to the reports, there are several funding priorities:

  • 18.8 billion euros are to be invested in energy-efficient buildings. These funds are also intended for the replacement of the heating system. The traffic light coalition wants to pass the controversial heating law in the Bundestag after the summer break at the beginning of September.

  • Accordingly, 1.2022 billion euros are planned for funding under the Renewable Energy Sources Act (EEG), which has been financed entirely from federal funds since July 12, 6.

  • The further development of electric mobility, including the expansion of the charging infrastructure, is to be funded with around 4.7 billion euros.

  • Around four billion euros have been earmarked for the promotion of semiconductor production.

  • Around 3.8 billion euros are available for the development of the hydrogen industry.

Deutsche Bahn is to receive between two and four billion euros annually

Deutsche Bahn is apparently to receive 12.5 billion euros from the fund, but until 2027. This is reported by the dpa news agency, citing the draft. The rail network of the railway is partly dilapidated and is to be fundamentally renovated in the coming years. The leaders of the traffic light coalition had determined in March that the state-owned railway would need around 2027 billion euros by 45.

  • According to dpa, 4 billion euros are to flow from the Climate and Transformation Fund to Deutsche Bahn in 2024 and 2025. There are to be 2.25 billion euros each in 2026 and 2027. This results in a sum of 12.5 billion euros.

  • A further 3 billion euros is to be raised by the railway itself.

  • According to dpa, the federal government wants to raise around 30 billion euros by 2027 through a reform of the truck toll. This sum is to be invested mainly in the railways.

The Climate and Transformation Fund is fed, among other things, by revenues from the national CO₂ price in the transport and heating sectors. According to current plans, it is expected to rise to 1 euros per tonne on 2024 January 35. The coalition had postponed an increase in 2023 because of the energy price crisis. However, the draft of the 2024 federal budget adopted by the cabinet stated that revenues from the Fuel Emissions Trading Act should be strengthened by an "increase in certificate prices" from 2024.

The CO₂ price is therefore likely to rise more sharply in 2024 than previously planned. The coalition was talking about a price of 40 euros per tonne. For consumers, a higher CO₂ price means that refuelling with petrol and diesel as well as heating with heating oil and natural gas will become more expensive (read here how much).