The German government is set to allocate €57.6 billion for green investments in the year 2024, marking a 60.2% increase from the funds designated for 2023, as stated by the German Ministry of Finance.
The majority of the funds from the climate and transformation fund will be directed towards the German construction sector, totaling €18.9 billion, according to the announcement.
Support for renewable energy production in Europe has become more urgent, especially since the United States introduced generous subsidies through its Inflation Reduction Act, which could potentially draw manufacturers away from Europe.
“We are laying the foundation so that future opportunities can arise from decarbonization and digitization,” stated Finance Minister Christian Lindner.
The overall investment in the climate and transformation fund, a supplementary budget to drive the green transition of the economy, would amount to €212 billion between 2024 and 2027, as outlined by the Ministry of Finance.