Germany is launching a €500 billion infrastructure fund to modernise its infrastructure and support its energy transition, bypassing the country’s debt brake. With €100 billion dedicated to climate-related measures, the Climate and Economic Transformation Fund (KTF) will focus on energy-efficient renovations, electric mobility, hydrogen industry expansion, and decarbonisation technologies. Supported by the Green party, this initiative aims to stabilise energy prices and enhance renewable energy deployment, including wind, solar, and alternative sources. Significant opportunities arise for private sector involvement, particularly in grid and battery infrastructure, with potential for public-private partnerships. The government is also exploring carbon dioxide storage and a hydrogen core network to boost investor confidence. Although this initiative may increase Germany’s debt ratio, it is also expected to stimulate economic growth and enhance energy security. However, regulatory and technological challenges remain, requiring collaboration between the government and industry. From an EU perspective, the initiative is expected to promote regional collaboration and economic resilience. For more details, read the full article.
Germany’s new CDU/CSU and SPD coalition has unveiled its agenda, focusing on reducing regulatory burdens and achieving net zero by 2045. The coalition plans to abolish the German Supply Chain Due Diligence Act and implement a new law aligned with the EU’s Corporate Sustainability Due Diligence Directive. This transition aims to streamline compliance and improve enforcement. The coalition supports the EU’s Omnibus initiative to reduce administrative burdens, particularly for SMEs. Climate goals include advancing emissions trading, CO2 capture, and storage technologies, and developing the hydrogen economy. The coalition emphasises voluntary measures in environmental policy and opposes the EU’s Deforestation Regulation. Resource efficiency and the circular economy are highlighted, with support for critical raw material projects. For more details, read the full blog post.
In recent years, the European Commission has sought to frustrate the enforcement of dozens of arbitral awards against Spain and other EU Member States. Those awards have been issued in favour of infrastructure funds and other investors for losses suffered because of the revocation of guaranteed feed-in tariffs and other incentives for renewable energy projects.
On 24 March 2025, the European Commission found that an award requiring Spain to pay an infrastructure investment firm €101 million in damages amounts to illegal State aid under Article 107 of the Treaty on the Functioning of the European Union.
As a result, the Commission has prohibited Spain from paying the award. The decision also calls on EU Member States to support Spain in preventing the enforcement of the award, including in jurisdictions outside the EU, by issuing anti-enforcement injunctions.
For infrastructure investors seeking to enforce awards issued under intra-EU investment treaties, this decision highlights the continued difficulties in enforcing in the EU and the need to focus enforcement efforts outside the EU. In addition, investors in EU jurisdictions should consider structuring (or restructuring) their investments in EU states through jurisdictions outside of the EU with investment treaties in force with the relevant EU state.
The European Commission has introduced the Clean Industrial Deal to enhance Europe’s industrial competitiveness while advancing decarbonisation. The Deal aims for a decarbonised economy by 2050, focusing on energy-intensive industries and clean-tech sectors. It emphasises affordable energy, circular economy practices, and lead markets for clean technologies. The EU plans to mobilise more than €100 billion for clean manufacturing and industrial decarbonisation, with initiatives like the Industrial Decarbonisation Bank and InvestEU enhancements. The Deal also seeks global partnerships to secure raw materials and clean technologies, simplifying the Carbon Border Adjustment Mechanism. For more insights on the Clean Industrial Deal, read the full article.
As AI technologies rapidly advance, the demand for data centres and the electricity to power them is surging. During the “Latham Infra Circle: The Evolution of AI Infrastructure in Germany”, Latham partner Alexander “Stefan” Rieger engaged with David Howson (Vantage Data Centers) and Aroosh Thillainathan (Northern Data Group) to explore opportunities for data centre operators and investors in Germany. The discussion highlighted the need for initiatives similar to Project Stargate in the US to ensure Europe remains competitive. Thillainathan emphasised the challenge of meeting the energy demands of AI, predicting a need to triple energy capacity by 2030. Howson noted the role of hyperscalers in driving demand and the potential for new entrants. Both speakers acknowledged the importance of balancing energy needs with sustainability goals, leveraging renewable energy, and adopting efficient technologies. For more insights on AI infrastructure and energy capacity growth, read their conversation.
As the regulatory and legal landscape under the Trump administration continues to evolve rapidly, the full impact of recent tariffs and executive orders on the US and European infrastructure markets remains uncertain. For timely updates on major developments from key agencies, subscribe to Beyond the First 100 Days.
Should you have any questions or would like further information on any of these topics, please do not hesitate to reach out to our European Energy & Infrastructure team.