Setback for Habeck: Traffic light coalition wants to cut funding for heat pumps by billions in 2025

The traffic light coalition wants to cut funding for heat pumps by billions in 2025, which will result in a reduction of 2.4 billion euros for the Climate and Transformation Fund. However, funding for buildings and companies will continue.

The largest items in the fund include microelectronics and chip plants in Dresden and Magdeburg, while energy-intensive companies will receive 3.3 billion euros. The federal funding for energy-efficient buildings accounts for almost half of the total expenditure of the fund.

The focus of the fund also includes promoting climate-friendly mobility and the transformation of industry. Despite the funding cuts, the fund will still have 25.5 billion euros in revenue, with 9 billion euros remaining unused.

There are concerns about a premature funding stop. Additionally, a recently revealed study highlights the harmful effects of subsidies on the climate, with around 25 billion euros in subsidies contributing to an increase of over 50 million tons of CO2 emissions in the transportation sector by 2030. The study was withheld by the Ministry of Economics for several months, causing controversy.

The aim is to reduce climate-damaging subsidies and invest in green technologies, such as a 100-megawatt hydrogen electrolyzer in Moorburg, which will receive over 154 million euros in funding from the federal government and the city of Hamburg.