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The governments of Germany's coastal northern states have insisted on federal funding for agreed climate projects, and ensuring that these do not become subject to cuts caused by the federal government鈥檚 budget crisis. At an industry meeting in major port city Hamburg, the governments of city states Hamburg and Bremen, as well as those of Lower Saxony, Schleswig-Holstein and Mecklenburg-Western Pomerania called on the federal government to uphold agreed investments in sustainable industry transformation, for which northern Germany today was 鈥渁 frontrunner.鈥� A court ruling from November declared 60 billion euros earmarked for a federal climate and transformation fund unconstitutional, forcing the government to rethink its budget plans and triggered a halt to the financing of new projects.

The constitutional court鈥檚 ruling 鈥渕ust not become a setback for innovation and the energy transition,鈥� the northern states said in a . 鈥淲ith wind power, innovative hydrogen technologies and a capable port infrastructure, the north is a centre for technological development, the generation and the import of regenerative energies,鈥� said Hamburg鈥檚 mayor, Peter Tschentscher. A successful energy transition was thus a prerequisite for maintaining the region鈥檚 economic stability, he added. Bremen鈥檚 mayor, Andreas Bovenschulte, said that both the state and companies will have to make major investments in the next years. 鈥淭he states alone won鈥檛 be able to do it,鈥� he argued. Stephan Weil, state premier of Lower Saxony, said the industry needed an affordable power price to continue basic material production in the region. The states鈥� appeal was backed by representatives of local industry and labour unions.

The court ruling that strengthened the role of Germany鈥檚 so-called debt brake for limiting new government borrowing has triggered great uncertainty regarding the viability of climate and energy transition projects among industry and policymakers in the country. However, chancellor Olaf Scholz and economy minister Robert Habeck have stressed that important projects would not be at risk due to the verdict. The government postponed its adoption of a budget for 2024 and is considering declaring a new emergency situation, similar to that of the coronavirus pandemic, to suspend the debt rule and enable more borrowing.