The Klima- und Transformationsfondsgesetz (KTFG) is the legal framework governing Germany's Climate and Transformation Fund (Klima- und Transformationsfonds, KTF), a special federal fund that finances measures supporting the country's climate, energy, and industrial transformation objectives. Originally established in 2010 as the Gesetz zur Errichtung eines Sondervermögens "Energie- und Klimafonds" (EKFG), the law created a dedicated off-budget fund to support the transition to a low-carbon energy system through investments in renewable energy, energy efficiency, and related innovation.
On 12.07.2022, the EKFG was substantially amended and renamed the Klima- und Transformationsfondsgesetz (KTFG). While the legal structure of the fund remained intact, its scope was significantly expanded beyond energy policy to support the broader transformation toward a climate-neutral economy. The amendments renamed the fund from the Energy and Climate Fund to the Climate and Transformation Fund, broadened the range of eligible expenditures to include industrial decarbonization, sustainable mobility, hydrogen technologies, climate-friendly buildings, and climate adaptation, and strengthened the fund's role as a central financing instrument for Germany's climate and transformation strategy. Thus, the KTFG represents an evolution of the original EKFG, reflecting a shift from a primarily energy-focused funding mechanism to a comprehensive instrument supporting the country's economic and ecological transformation.
