Missing EU emissions reduction targets could cost Germany up to 300 million euros by 2020 - report

Germany could face fines of up to 300 million euros payable over three years for its failure to comply with emissions reduction targets under the EU’s effort-sharing mechanism, Jakob Schlandt writes in the energy policy newsletter Tagesspiegel Background. According to the German government’s budget planning, the payment is due for the period 2018-2020 and payable two years later, meaning instalments of 100 million euros each year between 2020 and 2022, the article says, adding that the figure is still highly speculative. The fine would have to be shared among all of Germany’s ministries rather than charged on the ministry that is responsible for the sector in which the excessive emissions occurred. This approach is currently being pursued by environment minister Svenja Schulze in her ministry’s draft for a new climate action law, but it is still heavily opposed by many of her fellow ministers.

Under the EU effort sharing regulation, Germany’s greenhouse gas emissions in non-ETS areas would have to fall by 14 percent by 2020 compared to 2005 levels. So far, however, emissions levels in these sectors have almost not fallen at all. The German government is currently preparing a climate action law, which is to set binding CO2 targets for each sector in order to avoid fines in the future.