Climate and Transformation Fund (KTF) (formerly called: The Energy and Climate Fund Act (EKFG)), adopted on September 28, 2010, created a special fund to promote environmentally-friendly, reliable, and affordable energy supply in Germany, with revenue primarily coming from nuclear power plant operators and emissions allowance auctions. In 2021, the fund was expanded and renamed to the Climate and Transformation Fund (KTF).

The 2026 federal budget earmarks €33.1 billion in spending through the Climate and Transformation Fund (KTF) in 2026 (2025: €36.7 billion). The financing for this will come from the emissions trading scheme (€4.3 billion) and CO2 pricing (€16.7 billion), as well as from the allocation from the Special Fund for Infrastructure and Climate Neutrality (€10 billion) and a withdrawal from the reserve (€2.1 billion).