Germany's new spending deal, which earmarks 100 billion euros ($109 billion) for climate projects, has given a strong boost to green energy companies, which could benefit from the extra funding.
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| Shares in German wind turbine maker Nordex SE surged as much as 10%, while Vestas Wind Systems A/S rose 6.3%. |
Shares of German wind turbine maker Nordex SE surged as much as 10%, while global wind energy solutions provider Vestas Wind Systems A/S rose 6.3%. Siemens Energy AG, a major wind turbine and grid equipment maker, also rose 5.1%.
Future German Chancellor Friedrich Merz reached a deal with the Greens on March 14 on a debt-financed spending package for defense and infrastructure.
The deal includes €500 billion for infrastructure investment, of which €100 billion will be set aside for Germany’s existing climate and transition fund. The remaining €400 billion will be used to support projects in roads, schools, housing and the electricity grid. The new fund will fund additional projects and help the German market reach its goal of being climate neutral by 2045.
As part of the deal, the climate neutrality target, which is set out in Germany’s Climate Change Act, will be enshrined in the constitution. This means that changing the target would require a two-thirds majority in both houses of parliament . The move could help protect the climate neutrality target from attempts to overturn it by far-right AfD lawmakers who have opposed climate change measures.
Mr. Friedrich Merz’s spending package still needs to be approved by lawmakers before Germany’s new parliament meets on March 25, when new parties will have enough votes to block constitutional changes.
| Future German Chancellor Friedrich Merz reached a deal with the Greens on March 14 on a debt-financed spending package for defense and infrastructure. |
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