The Special Fund for Infrastructure and Climate Neutrality (Sondervermögen Infrastruktur und Klimaneutralität SVIK) is an unprecedented investment package launched by the German government. With €500 billion in total funding, it provides financing for comprehensive investments that will modernise Germany and make our country fit for the future.
The special fund significantly increases the German government’s investment spending. Total federal investment is set to hit a record level of over €118.2 billion (adjusted, in particular for expenditure-side financial transactions) in 2026. Of this amount, €58.1 billion will be provided by the SVIK.
An intergenerational project of this magnitude poses new challenges in terms of transparency and management. Citizens, investors, businesses and international financial markets are paying close attention to how the money is spent, and what it is spent on.
In order to ensure that investments from the SVIK are made visible as quickly as possible in the form of (i) improved public infrastructure and (ii) greater innovation and growth potential, the German government is placing a high priority on the effective and efficient use of funding. This will require pro-active management of the SVIK.
In order to ensure transparency and a data-driven basis for follow-up adjustments, the German government has developed a customised system to monitor federal investments from the SVIK.
This monitoring system pools information related to the special fund in a single location. Standardised reporting will ensure that data can be prepared and evaluated uniformly across government ministries and infrastructural sectors.
A comprehensive annual monitoring report on the SVIK was submitted to the German Bundestag’s Budget Committee for the first time on 1 June 2026.
Go to the federal investment dashboard
Targets and milestones have been defined for each budget item in the special fund’s “federal pillar” in order to track results over time. These targets and milestones are based on international standards and the principles of performance budgeting. This means that, for the first time, the principles of performance budgeting are being applied systematically to the management of federal public investment. €300 billion from the SVIK is allocated to the federal pillar. |
Go to the Länder investment dashboard
€100 billion from the SVIK is allocated to the “Länder pillar”. The Länder are responsible for implementing this investment money. Once a year, they provide the Federal Ministry of Finance with a report on their investment measures. To minimise bureaucracy and maximise simplicity, the reporting requirements for the special fund’s Länder pillar are less detailed than reporting requirements for the federal pillar. The Länder investment dashboard reflects the latest information available to the government on the status of Länder investments. |
More information on the Climate and Transformation Fund
€100 billion from the SVIK is being allocated to the Climate and Transformation Fund. In accordance with section 8 of the Climate and Transformation Fund Act (Klima- und Transformationsfondsgesetz), measures implemented under the Climate and Transformation Fund must be reported once a year to the German Bundestag’s Budget Committee. Among other things, the impacts of funded measures are assessed in terms of (i) their potential for reducing greenhouse gas emissions and (ii) the ratio between allocated funding and emissions reductions. |
The SVIK creates the fiscal space that is needed in order to modernise the country, achieve climate neutrality by 2045, and boost economic growth.
The quality of public infrastructure plays a key role in making Germany an attractive place to do business and is therefore an essential factor in enhancing the competitiveness of the German economy and boosting growth prospects. Additional public investment in the maintenance, modernisation and expansion of essential infrastructure will strengthen Germany’s ability to attract skilled labour and private investment and to raise productivity over the medium and long term. Intact infrastructure and a modernised country will not only bolster the economy but will also enhance public confidence in the state’s ability to function efficiently and effectively.
Investments from the SVIK are targeted towards these objectives. Federal investments focus in particular on the following priority areas: transport infrastructure, hospital infrastructure, energy infrastructure, education and childcare infrastructure, research and development, digitalisation, construction and housing, and sport infrastructure. Länder investments in infrastructure, which aim to help Land and local authority governments fulfil their tasks, are also targeted towards these priority areas. For example, the Länder plan to make significant investments in civil protection.
In addition to infrastructure investment, the special fund’s other main focus is to help Germany achieve climate neutrality by 2045. Like public infrastructure, climate action is also well-established as a key factor for attracting business and investment. More than ever before, climate policy is closely intertwined with the priorities of economic vitality, geopolitical resilience and social stability. The Climate and Transformation Fund remains the German government’s primary instrument for investing in measures to achieve climate neutrality by 2045. The Climate and Transformation Fund is now being bolstered with annual injections of €10 billion from the SVIK. This extra funding will be provided for a period of 10 years. In addition, numerous investments from the federal and Länder pillars of the special fund will help Germany achieve its climate targets.
Macroeconomic models can be used to quantify the special fund’s expected impacts on the aggregate economy. Model simulations for the short term (until the end of 2027) show that spending from the special fund is boosting real GDP by about ½% compared with a scenario that excludes the special fund. The magnitude of this estimated impact is in line with estimates by other institutions such as the European Commission, the research centres involved in preparing Germany’s Joint Economic Forecast, and the German Council of Economic Experts.
