The cabinet of the new German government under Chancellor Olaf Scholz has decided to increase funding for the existing Energy and Climate Fund (EKF) by a whopping EUR 60 billion. The funds will come from lines of credit secured but not used this year in the fight against the coronavirus pandemic.
“60 billion euros of investments in the future are a booster shot for our economy,” said Finance Minister Christian Lindner in a statement. “With this money, we can overcome the economic effects of the corona pandemic in the long term and get off to a powerful start toward Germany’s climate-neutral and digital future.”
The allocation now heads to the German parliament, the Bundestag, where the government has a majority, for approval. Germany plans to take out EUR 100 billion in 2022 to mitigate continuing effects of the pandemic, Lindner added.