Funding for climate protection: create jobs and reduce CO2 – act now!

Funding for climate protection: create jobs and reduce CO2 – act now!

On April 6, 2025, a comprehensive reform process for climate and energy subsidies in Austria was announced. The aim of this realignment is to increase the efficiency of funding, which has become unavoidable given the tight budget situation. The climate and energy fund had a volume of 660 million euros last year, while annual funding under the Renewable Energy Expansion Act (EAG) amounted to one billion euros.

In order to specifically optimize the funding landscape, an independent institute is commissioned to analyze existing evaluations. The study focuses on four core questions: How do the measures contribute to achieving the EU legal climate goals? To what extent can CO2 emissions be saved and behavioral changes brought about? What added value is generated and how many jobs are created? And finally, how do the subsidies support the reduction of energy import dependency and security of supply?

Important basic principles and goals

The desired reform aims to create a simpler, more efficient and more transparent funding landscape. The basic principles of integrated climate and energy policy are, in particular, affordability and planning security for households and businesses as well as ensuring security of supply in times of global uncertainty. The ecological effectiveness for a climate-neutral future is also highlighted.

The funding structure is currently handled across several departments. There is a clear desire for less complexity, more impact and clear responsibilities. The facts about the evaluations should be presented by summer. Minister Totschnig has also assured that all funding commitments made by the end of 2024 will be paid out.

EU policy and climate goals

The EU is working to develop clean energy sources as alternatives to fossil fuels to reduce emissions. Currently, over 20 percent of the energy consumed in the EU comes from renewable sources. MPs called for faster approvals for renewable energy such as solar panels and wind turbines in December 2022. There are also new subsidies for hydrogen and offshore-based energy sources.

A central goal of European climate protection policy is to mitigate the effects of climate change and reduce activities that are harmful to the environment and the climate. The EU has legally committed to reducing greenhouse gas emissions to net zero by 2050 and is aiming for a 55 percent reduction by 2030. The measures in the REPower EU package also support independence from Russian fossil fuels.

Thanks to this integrative strategy and the planned reforms at national level, the basis for a sustainable and climate-efficient future will be created, bringing both economic and environmental benefits.

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