Current special funds in Germany

Germany consolidates key future investments in independent special funds. Each of these special funds follows its own legal and budgetary logic and creates new interfaces for private capital, cooperation, and project financing.

We explain which special funds are relevant, how they are structured, and where attractive opportunities arise for market participants.

 

Special Fund for the German Armed Forces (Bundeswehr)

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

The fund is managed outside the Federal budget, is constitutionally safeguarded, and enables large-scale procurement and infrastructure measures to be implemented over several years. According to the latest armaments report of the Federal Ministry of Defence (BMVg), the remaining EUR 53 billion in the special fund is to be made available by the end of 2027. For subsequent years, additional Federal resources are intended to be raised in order to achieve NATO’s 3.5% target.

How the financing works

The fund finances military procurement, research and IT projects, as well as construction measures. Private companies may be involved through cooperation models and dual-use technologies. State aid and public procurement law provide the legal framework.

Opportunities for your company

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

We support companies and investors seeking to actively shape the transformation of the European security architecture – legally, strategically, and operationally.

• Technology and defence industry: participation in procurement procedures and consortia
• Dual-use innovators: scaling research and development in civil-military fields
• Financiers and investors: structuring State-backed investment models
• Infrastructure providers: implementation of construction, IT, and communications projects

We connect procurement practice, funding law, and industrial strategy – for projects that tangibly strengthen Europe’s defence capabilities.

Climate and Transformation Fund (KTF)

The KTF is a Federal special fund that was originally established in 2011 as the Energy and Climate Fund (EKF) and has operated under the name Climate and Transformation Fund since 2022. It is the Federal Government’s central investment vehicle for decarbonisation and economic transformation.

Through the Special Fund for Infrastructure and Climate Neutrality, the KTF receives an additional EUR 100 billion, which used to finance measures in the areas of energy efficiency, the hydrogen economy, electric mobility, and the industrial transition to climate-neutral processes.

How the financing works

Funds are provided through ministries and funding programmes in the form of grants, equity participations, or loans. The legal basis is a combination of budgetary law and State aid law, enabling public co-financing.

Opportunities for your company

The KTF is the central platform for industrial transformation.

It links climate policy with capital markets logic and opens up new access to green financing.

• Energy and industrial companies: grants and co-financing for hydrogen, grids, and storage
• Investors and fund managers: ESG-compliant investments in decarbonisation projects
• Project developers: structuring funding-eligible business models
• Banks: integration of KTF funds into sustainable financing structures

We shape the interface between climate policy and capital markets – making transformation investable.

Special Fund for Infrastructure and Climate Neutrality

With the Special Fund for Infrastructure and Climate Neutrality (SVIKG), the Federal Government aims to future-proof Germany as a business and investment location. The SVIK consists of three pillars:

• EUR 300 billion for Federal investments
• EUR 100 billion for the Climate and Transformation Fund (KTF)
• EUR 100 billion for infrastructure investments by the Länder and municipalities (the allocation and implementation of which are governed by the Federal States and Municipal Infrastructure Financing Act – Länder- und Kommunal-Infrastrukturfinanzierungsgesetz, LuKIFG)

Over a twelve-year period, the SVIK is intended to enable targeted investments in digitalisation, the energy transition, and infrastructure.

How the financing works

The SVIK establishes financial structures over multiple years to enable large-scale projects to be implemented in a predictable manner. Funds are:

• earmarked for the three pillars,
• disbursed gradually over several years, and
• designed to supplement – not replace – investment expenditure by the Federal Government, the Länder, and municipalities.

The EUR 100 billion allocated to the Länder and municipalities is subject to specific rules under the LuKIFG. In particular:

• Funds are allocated to the Länder based on the Königsteiner Schlüssel.
• Eligible investments include tangible assets with a minimum volume of EUR 50,000, including planning and ancillary measures.
• Public-private partnerships and third-party investments in municipal infrastructure are expressly permitted.
• An administrative agreement specifies procedures and responsibilities.

Further details on the LuKIFG are available here.

Opportunities for your company

This special fund is the investment engine for the next generation of public infrastructure.

It combines public funding with private investment models – from the municipal energy transition to digital public services.

• Developers and construction companies: access to major Länder and municipal programmes
• Investors and asset managers: participation in PPP and co-financing structures
• Banks and financiers: project financing with funding components
• Public authorities: development of State-aid-compliant project architectures

We translate funding mechanisms into marketable project structures – and bring together capital, legal, and implementation.

Overview of additional special funds

In addition, there are a number of specialised special funds with sectoral or social objectives.

They address areas such as housing, education, culture, digitalisation, or international development and often combine Federal, State, and EU funding.

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

How the financing works

These funds are based on different legal frameworks, sponsors, and durations.

They are managed by Ministries, development banks, or State-owned entities and can in some cases be combined with other programmes.

Timely application strategies and State-aid-compliant structuring are essential.

Opportunities for your company

Even smaller special funds offer targeted funding opportunities for projects with social impact.

We help you use these funds strategically and integrate them in a legally robust manner.

• Project developers and property developers: programmes for housing construction and urban development
• Banks and development institutions: structuring combined financing (EU/Federal/State)
• Public and educational institutions: funding integration for digitalisation and modernisation
• Impact investors and foundations: participation in funds with social, environmental, or cultural added value

We create access to funding programmes that combine social impact with economic viability.