Clean Tech Stocks Rise as Germany Marks €100 Billion for Climate

(Bloomberg) -- Germany’s new spending deal, which earmarks €100 billion ($109 billion) for climate projects, gave a jolt to green energy companies that could benefit from the wave of extra funding. 

Shares of German wind turbine maker Nordex SE soared as much as 10%, while Vestas Wind Systems A/S rose as high as 6.3%. Siemens Energy AG, which makes critical grid equipment as well as wind turbines, gained as much as 5.1%.

Incoming chancellor and conservative leader Friedrich Merz reached an agreement on Friday afternoon with the Green party on a debt-funded spending package for defense and infrastructure. The deal includes €500 billion for infrastructure investment, with €100 billion set aside for the nation’s existing climate and transformation fund. The other €400 billion will support roads, schools, housing or grids.

The new fund is specified for additional projects and should help the nation achieve its climate neutrality goal by 2045, according to a document from the Green party seen by Bloomberg.

As part of the deal, the climate neutrality goal — laid out in the country’s Climate Change Act — will also be anchored in the constitution, the document said. This means it would require a two-thirds majority in both chambers of parliament to remove it. The move could help steel-proof the target against any possible efforts to jettison it by incoming far-right AfD lawmakers, who have rejected action on climate change.

Merz’s spending package still needs to be approved by legislators before Germany’s new parliament convenes on March 25, when new fringe parties will have a large enough minority to block constitutional changes.

“We have now given the CDU/CSU and SPD the opportunity to do the right thing,” said Katharina Dröge, parliamentary caucus leader of the Greens, which is losing a ruling position in the next government. “And we can only appeal to both parliamentary groups: Accept your responsibility. Do justice to climate protection.”

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