Report on the financing of the gas storage levy and fossil fuel investments from the KTF
In 2025, hopes were high when Lars Klingbeil announced that 100 billion euros from the special fund would be channelled into the Climate and Transformation Fund (KTF). These funds were originally intended to expand renewable energy, transform the economy into a climate-friendly one, and finance key climate protection measures.
However, a different trend is now emerging: in future, funds from the KTF are to be used, amongst other things, to reduce electricity prices. At the same time, there are plans to use money from the fund to support fossil fuel and natural gas projects. Critics see this as a misuse of the special fund, which was originally intended for climate protection.
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.
The legal basis is clear: Article 20a of the Basic Law obliges the state to protect the natural foundations of life. The Federal Constitutional Court’s (BVerfG) 2021 climate ruling requires Germany to transform itself into a climate-neutral economy that complies with the carbon budget set out in the 2015 Paris Agreement. This objective was formalised in 2023 with Article 143h of the Basic Law: climate neutrality by 2045 is now a constitutional mandate. Against this backdrop, the argument goes, the Climate and Transformation Fund should continue to be used specifically for socio-ecological transition and the expansion of climate-friendly infrastructure.
Webinar | Discussion on the legal and political implications of the expert report (German)
During an online event, Hamburg-based environmental lawyer Dr Roda Verheyen and barrister Dr Johannes Franke discussed the key findings of the expert report. They outlined potential legal challenges as well as the implications for the legal certainty of the KTF’s business plan and the federal budget.
The discussion also addressed the question of what legal actions or court proceedings might be envisaged in the future. Emmanuel Schlichter from GermanZero also provided a political analysis of the findings.
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More informationSpeakers and panelists
Dr Roda Verheyen, LL.M. (London), is a solicitor in Hamburg. She is regarded as a pioneer in environmental and climate law and has handled numerous landmark cases. Bekannt wurde sie u.a. durch Klimaklagen gegen die Bundesregierung und große Energiekonzerne.
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), arbeitet für die gemeinnützigen Organisationen GermanZero e.V., hat das Volksbegehren zur Anerkennung der Rechte der Natur in Bayern mitinitiiert und die NGO Rechte der Natur e.V. mitgegründet.
