Germany

Germany drops two places to 16th in this year’s CCPI. The country rates medium in the four main categories of GHG Emissions, Renewable Energy, Climate Policy, and Energy Use

Overall, Germany is projected to at least get near to achieving its 2030 climate targets. However, budget constraints challenge some of the measures foreseen in the government’s strategy, which would lead to a larger emissions gap.

Gas Prices Continue to Be an Unstable Influence

Germany made progress notably in the energy sector, owing to speeding up the expansion of renewable energies as supported by the Renewable Law (EEG) and reduced bureaucracy. In the industry sector, however, economic downturn rather than successful climate policies was mostly the cause of emissions reductions. Russia’s war in Ukraine and associated sanctions on Russian gas have led to higher gas prices and, consequently, electricity prices, causing slower overall economic growth. Despite gas prices returning to pre-war levels and renewables expansion proceeding, the prices continue to be higher than in other major economies. As gas is often a price setter in electricity markets, this is also the case for electricity prices, which weakens the competitiveness of some highly energy-intensive industries.

The CCPI country experts point out that other alternative solutions to fossil energy sources, such as green hydrogen, are not yet secured. Most worrisome is progress in the buildings and transport sectors, because with the Federal Climate Change Act’s weakening there space remains for the two sectors’ decarbonisation to lag. Other sectoral targets for emissions reductions are in place, but the measures to reach these targets are insufficient.

Support for Gas Expansion Is Problematic and a Strategic Approach to Fossil Fuel Phase-Out Is Needed

Germany’s image as a frontrunner in climate policy is clouded by the country’s endorsement of gas expansion in international fora such as G7.

The CCPI experts urge higher ambitions in emissions reduction for buildings and transport. A strategic approach in the phase-out of fossil fuels is also emphasised, including more ambitious coal and gas phase-out targets. Policies should be aligned with social and economic realities to ensure support for the measures taken. Participatory governance is a key approach for ensuring local support and avoiding local and regional conflicts. It includes measures for distributive and procedural justice.

Key Outcomes

CCPI Experts

• Brick Medak (NABU)
• Franziska Mey (RIFS Potsdam)
• Germanwatch