Fritz Erler-Pool faces potential restriction from climate change funds
In the picturesque town of Pforzheim, Germany, the renovation of the Fritz-Erler Bath, a vital facility for school and club swimming and an integral part of the local bathing landscape, has been put on hold. The decision comes as a result of the Federal Constitutional Court's ruling on the unconstitutionality of the Climate and Transformation Fund (KTF) on November 15, 2023.
The planned renovation, aimed at improving energy efficiency, was set to receive federal funding from the KTF. The funds were earmarked for renovating windows, replacing lighting with LED technology, and updating bathing water technology. However, the federal Minister of Finance has imposed an expenditure freeze on the climate fund, leaving the Fritz-Erler Bath renovation project in limbo.
Mayor Peter Boch and Deputy Mayor Dirk Büscher have expressed their concerns about the hold on the project. They hope that the federal government will quickly clarify how projects from the Climate and Transformation Fund should be alternatively financed. Büscher, in his capacity as finance mayor, emphasised that communities and companies cannot be left in the lurch with regard to already promised funding.
The Fritz-Erler Bath renovation is part of the federal program "Renovation of municipal facilities in the areas of sport, youth, and culture." A maximum of six million euros was to be financed from the federal funding program.
Meanwhile, Germany and the EU offer several sturdy alternative or complementary mechanisms to finance climate and transformation projects. These mechanisms focus on incentivizing industrial decarbonisation, innovation, and sustainable finance both domestically and in cooperation with international partners.
For instance, the Carbon Contracts for Difference (CCfD) remains a major targeted funding instrument for industrial decarbonisation in Germany. The German government plans to continue and expand this programme, which compensates companies in emission-intensive sectors for additional costs and price risks incurred by climate-friendly production methods.
Another option is the European Innovation Fund, an EU fund that supports breakthrough decarbonisation projects through grants financed by the emissions trading system. Recent grants worth nearly €319 million have gone to innovative projects in hydrogen, energy storage, and carbon capture to promote net-zero industries across Europe, including projects involving German stakeholders indirectly via the EU framework.
International Climate Initiative (IKI) Fund via the European Investment Bank is another German-financed trust fund that provides investment grants, financial instruments, and advisory services for climate action projects. It also fosters sustainable finance initiatives that might be of interest for international cooperation or technology transfer connected to German climate objectives.
Strengthening climate finance collaboration, such as the recent Sino-German cooperation on sustainable finance, offers possibilities for mobilizing private investments and technical expertise for climate resilience and transformation projects.
Lastly, the new German federal government plans extensive subsidy programmes aimed at innovation, economy, and future technologies including decarbonisation. Modernising funding rules to reduce bureaucracy and linking state funding to production within Germany are expected to create smoother pathways for accessing subsidies.
As the Fritz-Erler Bath renovation waits for a resolution, the Pforzheim Public Transport and Baths Authority remains in contact with the funding project carrier and will be informed as soon as there are any new developments. The authority, along with the mayors, urges the federal government to address the funding issue promptly to ensure the continued progress of vital projects like the Fritz-Erler Bath renovation.
- The Fritz-Erler Bath renovation, an integral part of the local bathing landscape and a project under the federal program "Renovation of municipal facilities in the areas of sport, youth, and culture," was set to receive funding from the unconstitutional Climate and Transformation Fund (KTF).
- As the funding for the Fritz-Erler Bath renovation is on hold due to the federal government's expenditure freeze on the climate fund, the mayors of Pforzheim, along with other stakeholders, hope for quick clarification on alternative financing methods for climate and transformation projects.
- Meanwhile, Germany and the EU offer alternative financing mechanisms for climate and transformation projects, such as Carbon Contracts for Difference (CCfD) and the European Innovation Fund, which focus on industrial decarbonisation, innovation, and sustainable finance.
