Story perspectives

Germany Slashes $34 B Climate Fund, Prioritizes Industry Subsidies

7/15/2026

Summary

Story summary

Germany will cut $34.2 billion from its climate and transformation fund through 2030.
The Merz administration says a subsidy program for energy-intensive industries justifies the cuts.
The fund, which currently subsidizes heat pumps and electric cars, will limit new subsidies to lower-income households.
Revenue for the fund comes from Germany’s national emissions-trading system.
Companies that receive the new subsidies must invest in making their production more climate-friendly.

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Story summary

Germany will cut $34.2 billion from its climate and transformation fund through 2030.
The Merz administration says a subsidy program for energy-intensive industries justifies the cuts.
The fund, which currently subsidizes heat pumps and electric cars, will limit new subsidies to lower-income households.
Revenue for the fund comes from Germany’s national emissions-trading system.
Companies that receive the new subsidies must invest in making their production more climate-friendly.