The German government remains committed to achieving climate neutrality by 2045, but acknowledges it will require significant and sustained effort. Economics Minister Katarina Reiche, in an interview with the Frankfurter Allgemeine Zeitung, emphasized the ambitious nature of the target, describing the necessary transformation as “highly complex” and non-linear.
The accelerated timeline for climate neutrality was established in 2021 by the then-ruling coalition, following a ruling by the Federal Constitutional Court. The court determined that the existing emissions reduction pathway risked leaving future generations with insufficient CO2 budgets. While the government opted for a linear reduction path, significantly greater early reductions are theoretically possible, leaving a larger CO2 budget beyond 2045.
Following recent commentary from the International Court of Justice regarding the regulation of individual and corporate action to meet climate goals, Reiche cautioned against excessive regulation. She cited the building energy law enacted by her predecessor, Robert Habeck, as an example of a measure that generated considerable discontent. Reiche stressed that achieving the ambitious targets in the building sector necessitates a willingness from homeowners to undertake renovations or invest in new heating systems. She criticized the previous government’s focus on specific regulations, arguing it ultimately hindered progress.
The revised building energy law, spearheaded by the current coalition government, will prioritize clarity, reduced bureaucracy and technological neutrality. The importance of enabling local municipalities to offer climate-friendly and attractive heating solutions, such as district heating networks, was also highlighted. Solid, local heat planning is critical for achieving the climate goals in the building sector.
An ongoing assessment of the progress and objectives of the energy transition is currently underway. The results, expected at the end of August, will focus on synchronizing the expansion of renewable energies with grid infrastructure development. Operators of renewable energy installations will be expected to assume greater system responsibility, potentially including contributions towards construction subsidies and network costs.
Reiche also advocated for “maximum openness to all technologies” including carbon capture and storage (CCS). She indicated that a CCS law is slated for cabinet approval this summer to provide industry with much-needed clarity and encourage investment. The Intergovernmental Panel on Climate Change (IPCC) recognizes CCS as a crucial tool for handling difficult-to-avoid emissions, particularly in sectors like cement, steel and chemicals. However, the IPCC also warns that CCS initiatives should not detract from the urgency of immediate emissions reductions. The technology’s scalability and cost remain challenges and ensuring the long-term containment of captured carbon within storage facilities is essential to prevent its eventual release and contribution to global warming.