International Climate Politics

Germany is the second largest donor of financing for climate protection worldwide. German climate funds promote action to mitigate climate change by enabling efficiency measurements, funding renewables, electric mobility, and more.

For some time, Germany lagged behind the multinational commitment made at the beginning of the 1970s to provide 0.7 percent of its gross national income for official development assistance. However, Germany has steadily increased its funding for development assistance to around 7 percent of its gross national income in 2016 and 2017. In addition, it has expanded its investments in clean energy and climate protection.

German climate finance

In 2010, the Special Energy and Climate Fund was created along with the National and International Climate Protection Initiatives (now known as Climate Initiatives). They mainly get funding from the trading of emissions certificates to promote actions that mitigate climate change, such as efficient cooling systems, small cogeneration units, energy audits for low-income households, consultation networks for small businesses, and, in the future, highly efficient industrial technologies and production processes – to name just a few examples.

The International Climate Initiative (ICI) finances pioneering projects and advisory services outside Germany. Since its beginning until spring 2017, some 500 projects were funded, totaling some 2.3 billion euros. The ICI focuses on climate policy, energy efficiency, renewables, adaptation to climate change, and reducing deforestation and loss of biodiversity.

According to the official website, priority is given to “activities that support creating an international climate protection architecture, to transparency, and to innovative and transferable solutions that have an impact beyond the individual project.” Each year, multipliable projects in developing, newly industrializing, and transition countries are selected to receive support.

The KfW – Germany’s development bank – also finances green projects around the world, with partnerships in countries such as Tunisia, India, and Bangladesh. In 2017, it helped to save around 13.7 million tons of CO2 equivalent from entering the atmosphere with projects like the Green Energy Corridors. Climate finance is another important issue for the KfW, which hedges liquidity risks for renewable energy projects in sub-Saharan Africa for up to EUR 31.6 million.