Germany’s political landscape changed overnight on Wednesday. The Christian Democratic Union (CDU) and the Social Democratic Party (SPD) released their coalition agreement, describing efforts to increase the country’s pursuit of climate objectives while addressing energy requirements. The deal is over 144 pages long and includes significant provisions to ramp up renewable energy. It would further promote beneficial expansion of gas power capacity, albeit with restrictions.
Under the new ruling coalition, the German government has plans for 20 gigawatts of extra gas power plant capacity. This action is portrayed as essential to meeting growing energy needs while we transition to a clean, renewable energy future. The coalition has reiterated its promise to bring forward Germany’s climate neutrality target to 2045. While an ambitious goal, this commitment has been widely popular across almost all political spectrums.
The energy policy portions of the coalition agreement are a lot like what was included in a draft released in March. While bemoaning that the plan depends too much on gas, the two parties continue to stress the need to boost renewable energy generation.
Germany will take aim at its current domestic target of an 88 percent reduction in emissions. That’s not good enough, especially given the EU’s ambitious plan to achieve a 90 percent reduction by 2040. This stipulation reflects ongoing discussions within the EU regarding how member states can achieve their climate targets while maintaining economic stability.
Perhaps the most significant hurdle though is the SPD’s internal approval process, since more than 300,000 party members have to vote to ratify the coalition agreement. Yet, even with lackluster momentum, their endorsement is extremely important. The terms of Germany’s incoming coalition agreement will play a consequential role in dictating the future of EU climate leadership.
“If the largest [EU] member state finds a clear position, it will help us find compromise within the EU as well,” – Peter Liese
The parties generally want to support the European Commission’s ambitious target of a 90 percent emissions cut. Their support underscored the need for the EU to allow member states to count the impact of permanent carbon removals towards their targets. The coalition makes clear that any credits used should be independently verified for quality and lead to real, additional emissions reduction. In particular, they figure that credits shouldn’t account for more than three percentage points of the total 2040 target.
The proposed approach has not entirely gone unchallenged. Critics warn that such a heavy reliance on carbon credits could severely weaken Germany’s credibility when entering into global climate negotiations. Tiemo Wölken, who I suspect strongly welcomed this move, raised the alarm about potential loopholes arising from this dependence.
“This would undermine the credibility of our climate policies and unduly shift responsibility onto other nations. This would open up tremendous loopholes instead of enabling emissions reductions at home,” – Tiemo Wölken
The coalition’s signed agreement is a remarkable political gain as it symbolizes a beautiful balancing act with environmental priorities and economic realities. The CDU and SPD seek to utilize conventional gas production in Germany, asserting that it can be part of a broader strategy to transition towards cleaner energy sources.
Germany, being Europe’s economic powerhouse, plays a key role in the current EU discussions on EU-wide collective targets. Its impact is huge, especially as these conversations develop. If SPD members ratify the coalition agreement, it will significantly increase Germany’s clout. Now armed with this new political power, the country will be empowered to push for ambitious climate policy throughout Europe.
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