Berlin Increases Investment in Climate Protection and Housing

The Berlin Senate has announced plans to significantly boost investments in the city, with a focus on climate protection and affordable housing, despite facing financial constraints. According to the newly approved financial plan, the annual investment volume, which reached a record EUR4.7 billion in 2025, is set to rise to nearly EUR6 billion by 2027, with projections indicating further increases in subsequent years.

Finance Senator Stefan Evers (CDU) stated that this increase is largely driven by a proposed 'Climate Pact' aimed at enhancing the city's sustainability efforts. This initiative includes a substantial capital injection of EUR2.3 billion into state-owned enterprises, financed through loans. The objective is to stimulate over EUR13 billion in investments dedicated to climate protection initiatives.

The primary focus of these investments will be the extensive expansion of the electricity grid and the decarbonization of district heating, both of which are under municipal control. Evers highlighted that by 2035, the annual peak load for the electricity grid is expected to double, in response to the rising demand for electricity resulting from the increased use of heat pumps and the electrification of the BVG bus fleet.

In addition to the 'Climate Pact', Evers pointed out that a special federal fund for infrastructure and climate neutrality will provide crucial financial support. Starting in 2026, Berlin will receive funding from this federal program, which is financed through national debt. The Senate's draft for the upcoming dual budget allocates EUR333 million for 2026 and EUR437 million for 2027, contributing to an anticipated total of approximately EUR5.25 billion over a twelve-year period.

Currently, about half of this anticipated funding has been earmarked for specific projects, while EUR2.7 billion remains unallocated, pending further discussions within the coalition. As the Senate aims to swiftly utilize these additional investment resources, priorities will include the development of affordable housing and the construction of new schools.