In 2025, hopes were high when Lars Klingbeil announced that 100 billion euros from the Special Fund would be allocated to the Climate and Transformation Fund (KTF). These funds were originally intended to expand renewable energy, transition the economy toward a climate-friendly model, and finance key climate protection measures.
But a different trend is now emerging: funds from the KTF are to be used in the future, among other things, to lower electricity prices. At the same time, there are plans to use money from the fund to support fossil fuel natural gas projects. Critics see this as a misuse of the special fund, which was actually intended for climate protection. Instead, funds from the KTF will be used to support natural gas projects in the future.
Legal opinion provides new insights
A recent legal opinion prepared by the law firm Günther Rechtsanwälte on behalf of Protect the Planet concludes that this financing is highly controversial from a legal standpoint and may violate the German Constitution.
The report concludes that a reduction in electricity prices does not qualify as an additional investment and therefore may not be financed from the special fund. From a legal standpoint, the use of the Climate and Transformation Fund (KTF) for this purpose is also considered problematic. From a legal standpoint, the use of the Climate and Transformation Fund (KTF) for this purpose is also considered problematic.
The legal basis is clear: Article 20a of the Basic Law obligates the state to protect the natural foundations of life. The Federal Constitutional Court’s (BVerfG) 2021 climate ruling requires Germany to transform into a climate-neutral economy that complies with the carbon budget set forth in the 2015 Paris Agreement. Article 143h of the Basic Law (GG) formalized this goal in 2023: Achieving climate neutrality by 2045 is now a constitutional mandate. For this reason, the Climate and Transformation Fund (KTF) should remain the central instrument for climate protection in Germany and be specifically strengthened.
Discussion on the legal and political implications of the expert opinion
In one of our online events, Hamburg-based attorney Dr. Roda Verheyen, one of Germany’s most prominent environmental lawyers, joined her colleague, attorney Dr. Johannes Franke, to present the key findings of the expert opinion. The two explained the legal vulnerabilities that exist, what this means for the legal certainty of the KTF’s business plan as well as the federal budget today and in the future, and what lawsuits and legal avenues are conceivable or to be expected. Emmanuel Schlichter of GermanZero provided a political context for the findings.
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More informationSpeakers and panelists
Dr. Roda Verheyen, LL.M. (London), is an attorney in Hamburg. She is regarded as a pioneer in environmental and climate law and has handled numerous landmark cases. She became known, among other things, for filing climate lawsuits against the federal government and major energy companies.
Dr. Johannes Franke is an attorney who also specializes primarily in environmental and climate protection law. He was invited to appear as an expert witness before the Bundestag’s Budget Committee regarding the Special Fund for Infrastructure and Climate Neutrality.
Emmanuel Schlichter, LL.M. (Kent) works for the nonprofit organization GermanZero e.V., co-initiated the referendum on the recognition of the rights of nature in Bavaria, and co-founded the NGO Rechte der Natur e.V.
