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Climate action

Ministry staff holding a big globe
Climate action Source:  Federal Ministry of Finance

The top challenge for the next 30 years is climate change. We are pressing forward with efforts to restructure our economy and make it carbon-neutral by 2050. The Climate Action Programme 2030 is the largest climate action investment programme in Germany’s history. In just the years up to 2023, Germany is investing a total of roughly €54 billion in in climate-friendly infrastructure, technology and social equity measures.

But our fight against climate change goes beyond this massive investment in the technologies of tomorrow. We are working to foster climate-friendly behaviour by encouraging businesses and private citizens to make the switch to clean energy. This includes targeted relief to ensure that the transformation is affordable for all – no one will be left to fend for themselves. For example, we have reduced the VAT rate on rail tickets to make rail travel more attractive. We have set up a bonus programme to promote purchases of electric cars. And we are also providing tax incentives for energy-efficient renovations of owner-occupied housing.

At the same time, carbon pricing will serve to reduce carbon emissions from heating and driving. To ensure that the costs are fairly distributed, the proceeds from the carbon-pricing scheme will flow back to citizens: for example, in the form of lower electricity prices, more money for long-distance commuters, and a mobility benefit for low-income earners. In this way, we are designing climate action policies with social responsibility in mind.

Our policies:

  • Advance the energy transition
  • Promote electric mobility
  • Pursue socially equitable climate policy

Find out more here.