Germany, U.S. launch energy and climate partnership

Germany and the U.S. have entered a partnership aimed at strengthening climate ambition and deepening the countries’ collaboration on policies and sustainable technologies needed to accelerate the transition to a global net-zero future. During a U.S. meeting between Chancellor Angela Merkel and U.S. President Joe Biden, the countries agreed to “invest in a sustainable economy that drives inclusive growth, supports communities, and creates good jobs and a healthy environment on both sides of the Atlantic and beyond”. The partnership intends to focus on three key areas of cooperation: climate action, transformational energy technologies and energy transitions in emerging economies.

Germany and the U.S. plan to raise global climate ambition and work bilaterally and multilaterally to accelerate reaching a net-zero future. To that end, they intend to develop roadmaps and policies for near-term and long-term reduction of emissions to keep a 1.5 degree Celsius limit in sight, coordinate on climate and trade agendas, and mobilize finance for sustainable development. They will also seek to encourage investment in sustainable energy in major and growing emitters around the world, especially in Asia and develop energy policy and regulations that promote renewables and sustainable fuel alternatives like hydrogen. Without naming Russia or alluding to the controversial German-Russian gas pipeline project Nord Stream 2, the two governments said they aim to prevent the use of energy as a coercive tool.  "We will mobilise investment in Central and Eastern Europe, including by supporting Ukraine’s energy transformation, energy efficiency, and energy security."

The U.S. rejoined the Paris Agreement in February after the previous U.S. administration withdrew the country from the deal. As a result, the U.S. has again joined Germany in seeking to take decisive action this decade to keep a 1.5 degree Celsius temperature limit within reach.