Germany, once a dream country for liberals running on renewable energy, is faced with the harsh reality that a competitive industry-based economy cannot run on only green energy. Chancellor Merz is now forced to accept reality and cut climate-related aid and funding and try to correct the mistakes of his predecessors.
According to a draft budget for 2026, the country will reduce support for global climate protection, straying from the six-billion-euro annual target once declared by former Chancellor Angela Merkel and later reaffirmed by her successor, Olaf Scholz.
The draft budget shows that key expenditures for international climate finance will remain stagnant or face cuts. The Federal Ministry for Economic Cooperation and Development (BMZ), which is responsible for the majority of international aid, is among the hardest hit. Its funding is set to drop by nearly ten percent.
Adding to the controversy, the BMZ has been criticized for channeling billions of euros from German taxpayers into questionable international projects. These include €53.7 million for digital health reform in Uzbekistan and €12.6 million for urban climate adaptation in El Salvador. Other ministries have also faced scrutiny: The Federal Ministry for Economic Affairs and Climate Action, led by Green Party minister Robert Habeck, funded “green refrigerators” in Colombia at a cost of €4.6 million and spent over €11 million supporting climate policy in Brazil.
Merkel’s plan for transitioning to renewable energy and forcefully strangling the country’s nuclear energy generation was a path to disaster. It was a plan that allowed these inexplicable foreign fundings, suspected to be corruption-related schemes. While her successor, Olaf Scholz, was turning a blind eye to this reality, Chancellor Friedrich Merz has no other option but to come to his senses and cover up the series of mistakes the previous regimes have made.
