The German government plans to significantly reduce funding for energy efficiency in buildings and the installation of heat pumps next year.

According to reports, the Climate and Transformation Fund (KTF) will have €14.35 billion available, which is €2.4 billion less than in 2024. Additionally, subsidies for energy-intensive companies will be cut by €600 million, leaving €3.3 billion available.

Critics, including Mark Helferich from the CDU/CSU, warn of a potential premature halt to funding, drawing parallels to past funding stops for electric vehicles.

However, a spokesperson for Economy Minister Robert Habeck assures that support for buildings and companies will continue without cuts.

Coalition budget policymakers also note that not all funds in the KTF are fully utilized, allowing for potential reallocation if necessary.