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Climate neutrality: Think tank proposes funding based on income.

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Published: May 5th, 2025,
Last updated: May 28th, 2025

Demonstration für das Klimageld.
Many environmental and social organizations are also pushing for climate money, as seen here at a protest in January 2024.

Brigitte Knopf, Director of the think tank Zukunft Klimasozial, has called for the new German government to swiftly introduce income-based subsidies on the road to climate neutrality. In a background paper, the think tank explains that transformation investments are currently almost impossible to make for households with low and medium incomes, and that there is therefore a risk of fossil lock-ins. The paper also points out that the EU’s Social Climate Fund will also provide funding for vulnerable groups particularly affected by the EU ETS 2 from 2026, and that a system is needed for its use.

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Climate Justice