In Favor of Endowing the Energy and Climate Fund with Borrowing Powers

Abstract

Abstract Energy security and independence are the new imperatives following the war of aggression on Ukraine ordered by Vladimir Putin. An accelerated transformation toward net zero carbon emissions accomplishes environmental and security goals simultaneously. It requires massive public investment over a very short period of time. In order to finance this, the Special Fund “Bundeswehr” created by the current government coalition should be accompanied by a special fund for energy security and independence. To this end, the existing Energy and Climate Fund (EKF) should be provided with borrowing powers, and its exemption from the debt brake should be enshrined in the Basic Law. This is already foreseen for the Special Fund “Bundeswehr” and creates legal certainty. The investment and funding required from the federal government for both initiatives is comparable to the financial volume raised for the German reunification via special funds.