Austria’s Climate Finance Strategy Criticised for Insufficient Funds and Lack of Adaptation Measures

The Renewable Energy Association of Austria criticises the financial agreement for climate protection as being marginal, with the main instrument—the Zukunftsfonds—underfunded at 1.1 billion euros, of which only 600 million is climate-related. This budget is allocated for housing renovations, renewable energy expansion, and environmental protection, with an additional 30 million for public transportation. Experts from the Austrian Institute for Economic Research (WIFO) suggest increasing incentives for regional and local governments to implement climate measures, possibly by earmarking funds and utilizing taxes such as vacancy or parking fees. They also recommend reevaluating the distribution of penalty payments for missed climate targets, where currently the federal government pays 80% and the states 20%. WIFO stresses the need for a fairer cost allocation by 2028, but warns this may be too late to meet EU climate goals by 2030. Furthermore, WIFO points out the lack of data on climate-damaging subsidies and the absence of funding for adaptation to climate consequences like heatwaves and floods, underscoring the need for more intensive action in the financial agreement.

Die erhöhten Mittel im Finanzausgleich sollen mit Anreizen zu mehr Klimaschutz verknüpft werden. Die neuen Millionen seien nicht genug, kritisieren Fachleute

Source: Wifo: Bundesländer könnten bei Klimaversagen zur Kasse gebeten werden – Wirtschaft – derStandard.at › Wirtschaft