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Germany's new government is pouring 60 billion euros into combatting climate change

Berlin skyline.
Berlin skyline.   -   Copyright  Canva
By Euronews  with Reuters - UK Online Report World News

The German government has injected 60 billion euros into fighting the climate crisis.

The investment is part of a new supplementary budget to "supercharge" the country's climate and transformation fund and encourage a shift towards a green economy, say officials.

The budget, passed unanimously by Chancellor Olaf Scholz's cabinet, will channel billions of euros of unused debt in this year's federal budget into future green spending.

The manoeuvre was agreed last month by the centre-left Social Democrats (SPD), pro-spending Greens and fiscally more cautious Free Democrats (FDP) in their coalition deal. It allows the parties to make the most of a temporary, pandemic-related suspension of borrowing limits.

Czarek Sokolowski/Copyright 2021 The Associated Press. All rights reserved
Chancellor Olaf ScholzCzarek Sokolowski/Copyright 2021 The Associated Press. All rights reserved

The coalition wants to deploy the funds to make critical public investments in climate protection measures - from charging points for electric vehicles to better insulating homes - and the digitalisation of the economy.

In addition to the debt-financed 60 billion euros, the government will channel some 18 billion euros of tax revenue, mainly stemming from eco taxes and the CO2 emission trading scheme, into its climate and transformation fund next year.