Austerity budget: What tricks the German • Table.Briefings

The „International Climate Initiative“ (IKI), with which Germany implements climate financing projects, is increasingly focusing on climate measures promoting biodiversity, such as the restoration of peatlands.

The German government has promised six billion euros annually for international climate action from 2025. Cuts to Germany’s national budget have put this pledge in jeopardy. The government can get around the problem in the short term with „creative budget management.“

The German coalition government is in a tight spot when it comes to financing international climate action: On the one hand, the national budget for 2025 is 25 to 30 billion euros short. On the other hand, it wants to support international climate action. It has also publicly and repeatedly pledged to spend at least six billion euros annually on this from 2025. This has led to discussions in political Berlin about a tempting alternative: „creative accounting“ for climate finances.

Austerity budget: What tricks the German government can use for climate financing

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