Make-up of Germany’s next government: Energy manager to head economy ministry
The prospective new German government has agreed to largely continue the country’s landmark energy transition without major adjustments and stick to existing climate targets, but the draft coalition agreement and the make-up of the future cabinet suggest that climate policy could become less of a priority.
The incoming coalition is set to reverse key institutional changes introduced in 2021. The outgoing government had raised the profile of climate action by making it a responsibility of the economy ministry at the national level, and the foreign office for international climate policy. In the next government, national climate policy will return to the environment ministry, and it is unclear whether the Foreign Office retains the responsibility for global climate action.
[Read the factsheet What Germany's 2025 coalition treaty says on climate and energy.]
Key positions relevant for Germany's climate policy
Chancellery: Friedrich Merz (CDU)
Conservative CDU leader Friedrich Merz is set to become Germany’s next chancellor. While the office of chancellor in Germany is not as strong as heads of government in a presidential system, he or she does set the general policy direction and usually has the last say in the government (as for example used by outgoing chancellor Olaf Scholz, when he deciding a limited runtime extension for the remaining nuclear power plants after the relevant ministries could not agree).
The coalition agreement signals a stronger role for the chancellery on security policy issues – closely intertwined with energy and security policy – with a new national security council to be set up. The agreement also says that all major decisions, including all cabinet decisions, have to be greenlit by the chancellery at an early stage. The chancellery will also introduce a weekly “EU monitoring” with ministries to avoid conflicts between ministries on European Union policy decisions.
Merz has remained ambiguous on a range of policy fields, notably on energy and climate, the latter of which “has not been close to his heart.” Many see Merz’s long stint in the private sector as an asset during a difficult time for the German economy. Others are worried that climate action could slide down on the agenda.
[Read Friedrich Merz’s full profile here.]
Economy and energy: Katherina Reiche (CDU)
The former "super" climate ministry run by outgoing Green Party politician Robert Habeck will be stripped of its climate policy jurisdiction, leaving economy and energy – what media commentators describe as a ministry cut down to the basics. However, with the energy transition decisions still in its domain, it remains one of the key ministries for Germany’s move to climate neutrality.
Conservative CDU member Katherina Reiche, who has been CEO of energy company E.ON's subsidiary Westenergie AG since 2020, is designated to become Germany’s new economy and energy minister. Reiche looks back at ten years in the energy industry, where she assumed leading positions as one of only a handful of female CEOs after dropping out as a member of parliament in 2015. The pick has surprised many observers but was welcomed by leading stakeholders, who hailed Reiche’s experience in the field. Reiche herself has described climate action as a task that requires immediate action to comply with the Paris Agreement.
[Read the full profile here.]
Environment, climate, nature protection and nuclear security: ? (SPD)
The environment ministry once again will be responsible also for climate action. However, with the topic largely mainstreamed across all policy fields, it remains to be seen how impactful the decision is going to be – and what policies ultimately will end up fall under the ministry’s jurisdiction.
The SPD will present the designated minister only after party members give the coalition the green light in an online vote, with the result expected to be announced on 30 April.
Transport: Patrick Schnieder (CDU)
After years of foot-dragging under previous governments, the mobility sector is lagging far behind in the country’s landmark energy transition, meaning major policy shifts are required, as the 2030 climate targets move into view. Transport – often referred to as the “problem child” of the transition – is responsible for more than 20 percent of Germany’s total greenhouse gas emissions, making it a crucial decarbonisation sector.
Conservative lawmaker Patrick Schnieder has been designated the next transport minister, the first CDU transport minister since the 1990s, as the ministry for a long time was occupied biy the CDU's Bavarian sister paerty, the Christian Social Union (CSU). Schnieder is largely unknown to the wider public. He was a member of the transport committee in parliament from 2009 to 2021.
The CDU lawmaker is set to implement coalition agreement promises, such as a buyer’s premiums for EVs or the charging infrastructure buildout, but must also deal with a rail system in urgent need of modernisation. Large parts of spending from the newly established 500-billion-euro infrastructure and climate neutrality fund are set to fall under his responsibility.
Housing, urban development and construction: ? (SPD)
The buildings sector has missed climate targets several times in recent years and is one of the toughest nuts to crack in German climate action. Most German homes are still heated with fossil fuels, bringing the transition into people’s living rooms. Making German homes less climate-damaging and keeping them affordable for residents at the same time will be a central task for the country's government.
The SPD will present the designated minister only after party members give the coalition the green light in the online vote.
Foreign office: Johann David Wadephul (CDU)
In the past four years, foreign minister Annalena Baerbock held the reigns on international climate policy, making her responsible for climate diplomacy at numerous UN climate change conferences (COPs) and for the six billion euros in annual climate finance the German state pays to developing countries around the world. However, it is unclear whether the responsibility will remain with the foreign office or move back to the environment ministry.
The designated minister is foreign policy lawmaker Johann Wadephul. A lawyer from the northern German region of Schleswig-Holstein, he has long been a strong supporter of military backing for Ukraine as it fights Russia's invasion.
Economic cooperation and development: ? (SPD)
The development ministry has played a key role when it comes to Germany’s international climate finance, with the largest volume of support included in projects in its purview. The conservatives had wanted to abolish the ministry, but the SPD pushed for keeping it. It will likely retain its current responsibilities, but a tight budget could mean funding cuts, also on climate-related projects.
The SPD will present the designated minister only after party members give the coalition the green light in an online vote.
Agriculture: Alois Reiner (CSU)
Agriculture is responsible for about ten percent of Germany’s greenhouse gas emissions, but it is one of the toughest sectors to decarbonise, and farmers’ protests in the previous legislative period have shown that climate policy in the sector needs to be carefully drafted and communicated.
Lawmaker Alois Rainer from the Bavarian conservative party Christian Social Union (CSU) is set to become agriculture minister.
