Germany’s international climate finance fell below its 2021 target in 2025, although the government said it increased the funds available for international projects through development banks and private investments.

In 2025, the German federal government allocated a total of €4.7 billion from the national budget for international climate finance, including for climate adaptation investments, 22% below the €6 billion target announced by Europe’s largest economy at the G7 Summit in June 2021. The figure was also below the €6.1 billion allocated in 2024. These funds include those earmarked for climate adaptation measures.

However, the government led by Friedrich Merz said it increased the amount of mobilised funds made available.

“In 2025, Germany made a total of 6.1 billion euros available from mobilised funds. This comprises loans channelled through KfW and the German Investment and Development Corporation (DEG), as well as leveraged private investment,” the German government said. “The market funds mobilised by KfW and DEG increased by 570 million euros compared with 2024, bringing the total to 5.15 billion euros.”

These funds are raised on the capital market by the banks on behalf of the federal government and provided mainly as repayable loans. “They are primarily used to support the energy transition in the Global South, including solar and wind farms and the development of hydrogen projects.”

The announcement raises questions about the commitment of several G7 countries to meeting their climate finance targets.