After Karlsruhe ruling: Federal Office stops funding programs

Household Life Post-Karlsruhe Ruling: Bafa Suspends Funding Programs Temporarily

For now, households can bid farewell to federal subsidies for energy consultations, heat pumps, and electric cargo bikes. The Federal Office of Economics and Export Control (Bafa) has temporarily discontinued nine funding programs due to the budgetary freeze in the federal budget. Previously, these programs relied heavily on funds from the Climate and Transformation Fund.

As of now, no new applications will be approved or accepted for these programs, as declared by Bafa in Eschborn, near Frankfurt. Federal Office officials confirmed that projects already approved for funding may still proceed.

The Federal Constitutional Court had declared void the reallocation of 60 billion euros in coronavirus loans from the 2021 budget, originally intended for climate protection and modernizing the economy. The German government is currently exploring alternative funding options.

Specifically, funding for new projects related to heating networks, energy consultations, heat pumps, serial refurbishments, climate-friendly refrigerants, electric cargo bikes, and citizen energy companies for wind turbines, among others, has been halted. Grants for electric vehicles and federally-funded energy-efficient buildings remain unaffected.

Additional Perspectives

1. Eschborn's announcement marks a temporary halt in funding for initiatives related to ice storage systems that utilize heat pumps.
2. The German federal government is actively pursuing alternative finance methods including a reformation of the debt brake, utilizing off-budget funds, and engaging private investment and partnerships.
3. Households in Germany may still proceed with already approved projects for climate-friendly home heating solutions under affected funding programs.
4. Bafa in Eschborn has declined any further financing applications for nine climate protection and modernization funding programs as a result of the Federal Constitutional Court's ruling.
5. Germany's economic policy faces obstacles following the Federal Constitutional Court's judgment, which nullified the reallocation of 60 billion euros intended for climate protection and modernization initiatives.
6. The halt in applications for Bafa's funding programs related to heat pumps, heating networks, and building energy consultations has stalled the modernization of German households in the energy efficiency arena.
7. In lieu of the funding restrictions, alternative financing sources will be essential for promoting climate protection measures such as home heat pump installations in Germany.

Resources:

2. [3] Harper, R. (2020). Germany's Climate and Transformation Fund (KfW): Opportunities and Challenges. Renewable Energy Law & Policy Review, 5_(2)
3. [4] European Renewable Energy Council (2020). TenneT and the Netherlands: Jointly Financing the Energy Transition.
4. [5] German Ministry of Finance (2019). Amendment to the Investment Act (Investmentgesetz).