Federal Government's budget plan draws mixed reactions from BEE: Infrastructure and climate action are on the table, while promised alleviation is delayed
The German Renewable Energy Federation (BEE) has expressed criticism towards the federal government's draft budget for climate protection and infrastructure investments, scheduled for its first reading in the week of 7 to 11 July, 2025.
The draft budget includes economic plans for the special funds "Infrastructure and Climate Neutrality" and "Climate and Transformation Fund", totalling 37.2 billion and 36.7 billion euros respectively. However, the BEE President, Dr. Simone Peter, has criticised the shifted priorities within the Climate and Transformation Fund (KTF), including reductions in funding for hydrogen projects, battery storage, and carbon management.
Peter further criticised the draft budget for not sufficiently promoting further electrification in the heat and transport sector. She also expressed concern over the cuts to the development of a future-oriented green hydrogen economy, storage capacities, and a CO2 infrastructure, which she believes endanger the decarbonization goals of the energy-intensive industry.
The BEE sees the draft budget as ambivalent, as it promises infrastructure and climate protection but postpones promised relief in electricity prices. Private households and small businesses, including the crafts sector, had expected more electricity price relief, but the draft budget provides limited relief only for industry and agriculture.
Moreover, the BEE President has criticised the inclusion of the gas storage surcharge in the KTF and significant increases in compensation payments to coal-fired power plant operators. She also highlighted the postponement of the reduction of the electricity tax to the legally permissible minimum in Europe, a central project of the coalition agreement, in the draft budget.
The coalition committee met on July 3, 2025, to discuss the draft budget. The concerns expressed by the BEE underscore the need for a comprehensive and ambitious approach to climate protection and renewable energy support in the draft budget. The draft budget was subsequently submitted to the parliamentary debate of the German Bundestag.
- Dr. Simone Peter, the President of the German Renewable Energy Federation (BEE), criticized the draft budget for climate protection and infrastructure investments, claiming that it postpones promised relief in electricity prices for private households and small businesses.
- The BEE President also raised concerns over the inclusion of the gas storage surcharge in the Climate and Transformation Fund (KTF) and significant increases in compensation payments to coal-fired power plant operators.
- Furthermore, she highlighted the absence of sufficient support for further electrification in the heat and transport sector, as well as the development of a future-oriented green hydrogen economy, storage capacities, and a CO2 infrastructure in the draft budget.
- In environmental-science circles, there is a growing belief that the draft budget should prioritize renewable-energy projects, such as hydrogen projects, battery storage, and carbon management, to meet the decarbonization goals of the energy-intensive industry.
