Germany to inject 50 billion euro into climate fund

Germany to inject 50 billion euro into climate fund

BERLIN, Nov 25, Reuters -- Germany's next government is working on a supplementary budget to pump more than 50 billion euro into its climate fund over the next few years to speed up the transition towards a green economy, sources said on Thursday.

Two people familiar with the plans told Reuters on condition of anonymity that the three parties set to form the new government agreed to finance the climate fund injection with still unused debt authorization in this year's federal budget.

The debt-financed injection means that the government will be able to make full use of the 240 billion euro debt ceiling that was originally granted by parliament for 2021, according to sources.

The budget manoeuvre allows the ruling coalition to beef up its climate fund this year and possibly next when the debt brake is still suspended, and then use those funds for public investments in the coming years to move towards a more climate-friendly and digital economy.

A finance ministry spokesman wouldn't say anything.