Germany

Germany drops six places to 22nd in this year’s CCPI. The country ranks high in Energy Use and medium in GHG Emissions, Renewable Energy, and Climate Policy.

Germany’s new government has been in place since May 2025, maintaining the fundamental climate policy architecture but showing no additional ambition. The overall ranking decline can be attributed to its announcements to weaken existing climate legislation and unnecessarily expand gas power plants. Germany retains an extensive framework with clear reduction targets in the Climate Protection Act, as well as EU-anchored efficiency standards and carbon pricing. The EU Emissions Trading System 1 (ETS1) is in place for large industrial plants, power stations, and air traffic, and ETS2 is being prepared for transport and buildings. The renewables build-out has accelerated thanks to action the previous government’s actions, and coal phase-out is enshrined in law to be completed by no later than 2038. Support frameworks for industry and a clearer heat transition perspective have been developed. The CCPI country experts judge that measures remain insufficient to meet sectoral targets, especially in transport and buildings and warn of a possible policy weakening and unresolved responsibility.

RE deployment is progressing but gas expansion is problematic and a phase-out strategy is needed

In the power sector, the experts positively mention legislated renewable energy (RE) deployment paths, designated RE areas, and improving permitting procedures. However, development of the systemic features required for an electricity system increasingly dominated by renewables is lagging, such as in the expansion and digitalisation of grids, as well as incentives for demand flexibility. Hydrogen ramp-up and the development of a capacity market, for when RE does not generate sufficient power, are also moving too slowly. Offshore and onshore wind expansion remain below what is needed. The experts also warn that the planned gas power capacity risks a fossil fuel lock-in, while parts of the policy debate question elements such as the Buildings Energy Act and the 2035 clean-vehicle trajectory. The experts recommend that electricity be made reliably cheaper than fossil fuels by reducing the electricity tax to a European minimum and adjusting grid fees. Grid expansion costs also should be reduced, wind power tender design improved, and ETS2 implemented with a robust minimum price and a concrete plan for phasing out fossil fuel subsidies.

Fossil extraction is limited, as extraction of hard coal ended and a lignite phase-out is decided. LNG infrastructure is increasing and gas networks persist. The experts criticise the oversized fossil infrastructure and the lack of an overarching infrastructure vision. Concerning gas, the experts advise halting gas network expansions, where alternatives exist, and planning early decommissioning, which municipal heat planning enables. Overall, they recommend developing a gas phase-out strategy.

Energy efficiency standards and subsidies offer promise, though implementation is lacking

The experts welcome the ambitious energy efficiency standards, many of which are based on EU regulations, along with subsidy programs for heat pumps, building renovations, and electricity price reductions for electric vehicles and heat pumps. However, while these measures are seen as steps in the right direction, the experts criticise the lack of implementation. They point to the German railway system’s shortcomings, inadequate and overpriced charging infrastructure for trucks, and continued subsidies for fossil fuels in the industrial sector as key areas for improvement.

Germany has programmes for forest conservation, peatland rewetting, and Common Agricultural Policy (CAP) eco-schemes, but lacks binding targets for reforestation and deforestation reduction. Meanwhile, agricultural subsidies remain largely area-based. The experts call for integrating reforestation and agroforestry targets into the CAP and the overall reform of CAP toward a public welfare premium from 2028 onward, with clear sustainability criteria.

Internationally, Germany shows a broad commitment to multilateral initiatives and its climate financing is at a record level. However, the experts indicate that Germany’s recent budget cuts in official development assistance for climate affect the USD 6 billion climate finance target. They also mention negative signals emerging from debates on weakening EU targets.

The experts’ main demands are: tightening implementation across all sectors, especially buildings and transport, to accelerate grid build-out and modernisation of power grids in line with renewables development; increasing climate finance ambition; and strengthening transparency, monitoring, and policy continuity.

Key Outcomes

CCPI experts

The following national experts agreed to be mentioned as contributors for this year’s CCPI:

• Germanwatch