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Fresh money for BEG funding

Billions in funding for energy efficiency: Ministry of Finance secures funds for climate-friendly new builds

01.04.2025

Source: E & M powernews

The Ministry of Finance has approved 1.22 billion euros for the "Federal Funding for Efficient Buildings". 300 million will flow into the "Climate-friendly new build" funding pot.

The Federal Ministry of Finance is preventing the "Federal Funding for Efficient Buildings" (BEG) and the "Climate-friendly New Buildings" (KFN) program from running out of money with two so-called over-scheduled commitment appropriations. On March 28, the House approved 1.22 billion euros to promote energy efficiency and renewable energy measures in the building sector. In order to avoid a halt to the KFN federal funding, the ministry is making 300 million euros available. Both funding programs will be processed via the Climate and Transformation Fund.

According to a letter to the federal government, the commitment authorization for 2024, which continues to apply as part of the provisional budget for 2025, has been almost fully utilized. According to the Federal Ministry of Finance's funding forecast, the money will last until the beginning of April 2025. The 1.22 billion euros will be distributed over the period up to 2032. The highest funding volumes are planned for 2026 (up to 521 million euros) and 2027 (up to 282 million euros).

Ministry of Finance: Stopping funding would destroy trust

"A funding freeze at the BEG would destroy confidence in the seriousness of the Federal Government's climate policy goals and thus significantly harm essential state interests," explains the ministry. The additional commitment appropriation was immediately necessary "in order to be able to allocate the additional funds to KfW in good time with the usual lead time".

The new KFN funds are spread over the years up to 2035. 12 million is planned for 2026, after which the annual volume will increase to up to 37 million euros. This pot of money is also currently almost exhausted; according to the Federal Building Ministry's funding forecast, the money will "only last a few more days", according to the statement.

The Bundestag and Bundesrat have loosened the debt brake with an amendment to the Basic Law and allowed a "special fund" of 500 billion euros to be set up for a period of time.100 billion euros of this is to flow into the climate and transformation fund.

Author: Manfred Fischer