Germany: Special funds in focus

Germany is strategically realigning its investments. Through the establishment of special funds, the Federal Government creates financial flexibility beyond the core budget – which is constrained by the debt brake – for defence, energy, digitalisation, infrastructure, and industrial transformation. These funds have become essential management tools, enabling innovative approaches to cooperation and financing with private sector participants such as investors, developers, banks, construction companies, as well as public institutions. With the Special Fund for Infrastructure and Climate Neutrality, the Federal Government is making up to EUR500 billion available for long-term investment in public infrastructure.

What we do

We analyse which special funds and programs are relevant to your project and facilitate access to grants, guarantees, and co-financing.

Designing and securing structures

From fund and transaction structuring to questions of budgetary and State aid law, as well as governance and procurement, we develop clear and robust structures for projects, partnerships, and financing.

Implementing infrastructure projects

We support projects throughout their full lifecycle – from development to operation to exit – providing legally sound, economically thoughtful, and long-term investment-focused advice.

Our commitment

We bring together public financial frameworks, private capital, and physical infrastructure—for projects that shape the future.

What is a "special fund"?

Special funds form the new foundation of public investment policy. Stakeholders who understand them can accelerate project delivery, strategically leverage funding models, , and effectively steer direct capital flows. Public resources become powerful catalysts for investment in energy, mobility, security, and technology.

How are special funds governed?

Each special fund is established by law, earmarked for a specific purpose, and is time-limited. The funds are managed by Federal ministries, administered through project sponsors and development banks, and monitored by the Federal Court of Auditors.

Financing system of special gunds

Special funds serve as the link between public financing and private capital. Through close coordination with development banks and institutional investors, a financing system emerges that combines public funds with market-based mechanisms and enables investments in key future sectors such as energy, infrastructure, digitalisation, and security.

The sectors – where the funds flow

Five sectors, one goal: shaping Germany’s future. The Federal Government’s special funds focus on the key futureareas of the German economy—transport, energy, digitalisation, social infrastructure, and defence. Here, Europe's largest investment programs are taking shape - driven by public financing and complemented by private capital.

Explore all sectors

Germany consolidates key future investments into dedicated special funds. Each special fund follows its own legal and budgetary framework, creating new interfaces for private capital, partnerships, and project financing. We outline which special funds are relevant, how they are structured, and where attractive opportunities arise for market participants.

Special Fund for the German Armed Forces

Established in 2022, the Special Fund for the Bundeswehr is the largest single-fund project in recent Federal history. It serves to modernise the armed forces and strengthen Germany’s operational and defence capabilities over the long term.

The defence special fund creates new markets at the intersection of industry, technology, and security policy.

We connect procurement practices, funding regulations, and industrial strategy – for projects that deliver tangible improvements to Europe's defence capability.

Climate and Transformation Fund (KTF)

Originally established in 2011 as the Energy and Climate Fund (EKF) and renamed the Climate and Transformation Fund (KTF) in 2022, the KTF is the Federal Government’s central investment vehicle for decarbonisation and economic transformation. With an additional EUR100 billion from the Special Fund for Infrastructure and Climate Neutrality, it finances measures to improve energy efficiency, develop the hydrogen economy, expand electric mobility, reduce energy costs, and support industrial conversion to climate-neutral processes.

Special Fund for Infrastructure & Climate Neutrality (SVIK)

The SVIK comprises three pillars:

EUR300 billion for Federal investments,
EUR100 billion for the Climate and Transformation Fund (KTF), and
EUR100 billion for infrastructure investments by the Länder and municipalities.

We translate funding mechanisms into commercially viable project structures that connect capital, legal frameworks, and implementation – making transformation investable.

Additional special funds

There is a range of specialised special funds with a sectoral or social focus. These address areas such as housing, education, culture, digitalisation, and international development, often combining Federal, state, and EU resources.

This creates a second tier of government transformation financing – smaller in volume but often highly targeted.

We provide access to funding programs that combine social impact with economic viability.

Whether you are planning an energy project, a new hospital, or a broadband network – the special funds open new possibilities but also entail responsibilities. We advise investors, banks, project developers, and public entities on structuring, procurement law, compliance, and strategic access to funding.

Get in touch to discuss your project – and to ensure optimal access to the special funds.