The Federal Ministry of Finance is yet to announce a timetable for the introduction of climate money, according to a response to a written request from the CDU obtained exclusively by the Tagesspiegel. Initially, the federal government aimed to establish the legal and technical framework for payments this year, with citizens expected to receive their first payments in 2025. The climate money is intended as a compensation mechanism for rising CO2 prices and high heating and refueling costs for citizens, as outlined in the coalition agreement of the traffic light government.
Christoph Ploß, a member of the Bundestag from Hamburg, sought clarification on the progress of implementation after learning that no payment method or responsible authority had been confirmed yet. The Federal Ministry of Finance is overseeing this process, with Parliamentary State Secretary Katja Hessel explaining that coordination within the federal government is necessary before deciding on a direct payment mechanism. Details on the administrative structure of direct payments will be provided at a later date.
CDU politician Ploß expressed concern that introducing climate money as promised may be delayed beyond this legislative period due to pressure from various groups such as environmental and social associations and coalition partners such as SPD and Greens. In January, FDP leader Christian Lindner suggested that a decision on payments may be postponed until after the next legislative period. Discussions on alternative solutions like tax discounts or commuter allowances are also underway.
The concept behind climate money involves redistributing income generated from CO2 pricing to citizens through per capita payments. The CO2 price is expected to reach €55 per ton in 2025, but some funds have been used by the federal government for projects funded by Climate and Transformation Fund instead of directly compensating citizens for rising gas and heating prices.
