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.
Understanding special funds
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.
Current special funds: overview
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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.
Strategic competence fields for transformation and financing
Frequently Asked Questions (FAQ)
Whether or not a project is eligible for funding depends on the specific statutory framework governing the respective special fund. Eligibility is determined by whether the project fulfils the legally defined funding purpose and complies with the substantive, formal, and financial requirements set out in the relevant legal bases – most notably the establishing act, funding guidelines, and administrative regulations.
At both Federal and State level, economic efficiency assessments and performance reviews are frequently required. This means that it must be clearly demonstrated that the project has been planned in a sound and economically viable manner and that the funding is used properly and in accordance with the rules. We provide comprehensive support in this process.
Compliance with budgetary law, State aid law, and public procurement law is required, among other things. Of particular importance is the principle of earmarking (Zweckbindung): funding may be used exclusively for the approved purpose.
If funds are misused or insufficiently documented, this may result in clawback claims.
We develop legally robust structures for funded projects – from the preparation of funding applications and cooperation agreements to governance and compliance mechanisms.
The funding prospects of a specific project depend on how closely it aligns with the funding objectives of the respective special fund and whether the formal requirements are met. Decisive in this regard are the statutory and sub-statutory provisions that specify the purpose, eligible measures, eligibility criteria, and the procedure for allocating funds.
Only these provisions determine whether a project corresponds to the funding purpose of the special fund and satisfies the required formal and substantive eligibility criteria.
By way of example, the following funding conditions apply to infrastructure investments by the Länder and municipalities under the Federal States and Municipal Infrastructure Financing Act (Länder- und-Kommunal-Infrastrukturfinanzierungsgesetz – LuKIFG):
- Funds from the special fund may be accessed for new infrastructure projects until 2042.
- Funding approvals must be granted no later than 31 December 2036; one third of the funds allocated to each Federal state must already be committed by the end of 2029.
- Timely project planning is therefore essential.
Eligible for funding are:
- Investments with a minimum volume of EUR 50,000,
- including necessary ancillary measures such as planning services, expert reports, or construction-related ancillary services.
Not eligible for funding are:
- Ongoing administrative costs or personnel expenses.
We identify your funding opportunities, coordinate communication with state authorities, and provide strategic and legal support throughout the application process.
Contact us
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.
