Climate fund: Germany plans billions for social compensation from 2026!

Climate fund: Germany plans billions for social compensation from 2026!

Deutschland - On June 30, 2025, the EU member states are under pressure: You have to submit planning to the EU Commission for the implementation of the new climate social fund. The Federal Ministry of the Environment explains that Germany and many other countries in particular need more time to coordinate with environmental, social and consumer protection associations. The goal of the Federal Government is clear: to present the plan this year and thus receive approval from the EU Commission as quickly as possible. This is part of a larger initiative to combat climate change, in which Germany will have EU funding in the amount of 5.3 billion euros.

But how does it work? The climate social fund is designed as a solidarity mechanism in order to cushion the burdens from the pricing of emission trade for heat and traffic (ETS 2). A total of up to 65 billion euros are available from 2026 to 2032, of which Germany can receive 8% and 1.77 billion euros in national co -financing. That makes a total of around 7.1 billion euros for the country for over seven years. It is important to note that the funds are "performance-based" and only flow if certain milestones are achieved, which increases the responsibility and mobilization of the countries.

The way to socially just climate policy

A central point of the climate social fund is to help households, road users and especially small entrepreneurs, to switch to fossil-free alternatives and prepare for increasing CO2 prices. Germany has stretched the funds with foresight and will later receive it back by the EU. However, this requires careful planning and implementation of social support programs from 2026.

expert opinions and demands

The results of the study were commented on by various experts. Stefanie Langkamp from the Climate Alliance Germany emphasizes the need for an overall package for the transition to CO2 pricing. Oldag Caspar von Germanwatch indicates the urgent need for action to prepare for the increase in CO2 prices. Dr. Jan-Dirk Döhling from the Institute for Church and Society calls for the implementation of the climate field to offer targeted support in order to offer low-income households. Maria Loheide from Diakonie Germany also clearly advocates a national climate social plan to alleviate the stress.

All in all, it turns out that the implementation of the climate social fund and the planned expansion of emission trade are contrasting with great challenges, but also opportunities. How the Federal Government and the EU will master the challenges remains to be seen, but one thing is certain: the social compensation must be a central part of every climate protection strategy.

For a comprehensive overview and further information, a look at the original sources and studies: BMUV, [Klima-Alianz] (https://www.klima-allianz.de/presse/mistrie/neue-studie-zum-eu-emiss-und-klima--- undlima---- undlima---- undalfonds) is worthwhile) [Diakonie] (https://www.diakonie.de/informen/infothek/2024/february/neue-studie-zum-eu-emissionshandel-und-klima-social fund).