In their first joint appeal, the climate advisory councils of Germany's federal states urged policymakers to seize the “historic opportunity” offered by Germany's €500 billion special fund for infrastructure and climate-neutrality projects in order to drive emissions reductions and climate adaptation.
Ahead of a meeting of the finance ministers of Germany's federal states, the aforementioned climate councils declared that the loan-financed programme, the largest in German history, must be used to strengthen the competitiveness of the economy and the well-being of society, and to implement effective climate measures systematically.
Climate advisory councils currently operate in 11 of Germany's 16 federal states. They are expert bodies bringing together researchers and specialists from various fields to advise state governments on how to apply scientific findings in policymaking. The advisers set out an offer of assistance to the federal states, which will receive €100 billion from this fund to finance projects.
Investments made with the fund's money must be compatible with the climate targets of the federal states and the federal government, the advisory councils' representatives stressed. Infrastructure projects must be designed to a high standard so that they can withstand the impacts of climate change, such as devastating floods, drought and other extreme weather conditions.
“The investment decisions taken now will shape our infrastructure for decades to come,” said Karen Pittel, an economist and member of the ifo Institute and of Bavaria's climate council. “They must be aligned with climate neutrality and resilience, otherwise they will become a costly risk.”
Kai Uwe Totsche, a hydrogeology researcher at the University of Jena and a member of Thuringia's advisory council, called on Germany to become a technological leader in climate adaptation. Investment should include better data collection on the impact of the climate on transport, buildings and the energy system, and the role of research and education should be expanded.
The German state advisory councils also identified the key areas for investment, including expanding the use of renewable energy, modernising the electricity grid, clean and integrated mobility, climate-resilient infrastructure, nature-based solutions, and general support for research and innovation in order to underpin these sectors. “Targeted investment in these areas strengthens climate action as well as industry, local value creation and quality of life,” the experts noted.
The specialists emphasised the particular importance of local authorities in making the fund's investments a success. “Municipal climate action is public well-being: it secures social cohesion and protects the local economy,” said Maike Schmidt, head of Baden-Württemberg's climate council and a researcher at the ZSW institute.
The German government has also been criticised for using this borrowing package — intended to provide additional funds over ten years for modernising infrastructure and achieving climate neutrality — to shift spending out of the core budget and to channel money into projects that do not match its purpose. Germany's National Council of Economic Experts, the Wirtschaftsweise, warned as early as the end of 2025 that spending from this enormous fund must be “additional and productive”, as otherwise it could jeopardise the German economy's short-term growth potential and the long-term sustainability of the country's debt.