The German government announced on Monday that in 2024, the country had provided €11.8 billion for climate protection projects abroad, far exceeding its original pledge.
Of this sum, €6.1 billion came from budgetary resources, while over €1 billion was mobilized from private funds. In total, €5.7 billion was drawn from development banks such as KfW and DEG, alongside private investments, to finance projects including solar and wind power plants in the Global South and the expansion of local public transport in India, South Africa, Indonesia, and Mexico.
Unsurprisingly, the Social Democrat Development Minister Reem Alabali Radovan (SPD) defended the spending, declaring: “Germany stands by the side of the Global South, even in difficult times.” She insisted that “climate protection means future security and economic stability.”
The announcement comes at a time when Germany is struggling with a huge gap in its federal budget and an economy under pressure. The past two years, Germany was on the brink of a recession, with the most optimistic forecasts projecting a maximum of 0.2% growth for next year. Evident cracks are appearing in the manufacturing sector, historically Germany’s strongest. Output in the sector fell to 2020 COVID pandemic levels in July, something that is a cause for concern among experts.
As Chancellor Merz himself admitted, the German welfare state is not financially viable, especially with the immense pressure immigration has placed on Germany. Millions flock from the Middle-East and Africa for the huge social benefits intended for Germans, now siphoned by illegal immigrants. Housing asylum seekers in four star hotels costs the country almost €200 million, while €149 million is being spent on Afghans stranded in Pakistan awaiting a chance to leave for Germany.
Yet the German government is spending a staggering €59.5 billion on climate protection in 2025 alone. Environment Minister Carsten Schneider (SPD) justified the approach, saying: “Because electricity from wind and solar energy is becoming increasingly cheaper, this gives us the opportunity to focus scarce public funds even more on adapting to climate change in the future.”
