German industry calls for impact assessment of decision to raise climate targets

Taking issue with efforts by the German government to tighten climate targets in its decision to amend the Climate Action Law, which is set to be voted on in parliament on 24 June, the Federation of German Industries (BDI) is calling for a thorough examination of the effects a sustainable and permanent transformation will have on both individuals and on other areas of policy.

The government decided to pull forward the national goal to reach climate neutrality to 2045 and introduce more ambitious interim greenhouse gas reduction targets. The amendment sets new and annual targets for the period up to 2030 and beyond.

The BDI describes the climate goals as “politically set” and notes that voters are not provided with information on what “this enormous transformation will cost.” Impact assessments with regard to the economic and social effects of the amendment were not carried out, it writes. “The effects of the updated climate law are considerable -- more significant than the short text of the law suggests”. The BDI says the results of such an assessment “must be honestly communicated and explained to all sectors of society.” It stresses that the risks in achieving the government’s set targets remain hidden. “It cannot be ruled out that the necessary changes will lead to structural breaks in less than 10 years. Without rapid fundamental changes in the behaviour of each and every individual, this upheaval, which affects all areas of life (living, mobility and nutrition), will not succeed. How this can be achieved in concrete terms is not discussed by the government.”