Germany’s emissions remain high as sector coupling potential stays untapped

Germany is failing to take advantage of the huge potential of the “rigorous electrification” of transport and heating to cut emissions, consultancy McKinsey says in its latest Energiewende Index. Even though its emissions figures fell slightly in 2018, Germany still is over 100 million tonnes short of its 2020 target. McKinsey found that Germany was on track according to only 6 of 14 indicators, including power production from renewables and supply security. It also made progress on industrial power prices, which are still around 5 percent higher than the European average but lower than they were in 2010. However, Germany still struggles to bring down household power prices, reduce primary energy consumption and update its grid infrastructure to better integrate renewables. The consultancy says that to meet the goals of the Paris Agreement and cut emissions by 95 percent by 2050, Germany will have to push electrification in all sectors.

In order to make progress on Germany's lacklustre emissions reduction record, environment minister Svenja Schulze has submitted a first draft of the planned Climate Action Law, which is supposed to spell out detailed reduction targets for each sector. The draft was met with fierce resistance by Schulze's fellow minister who fear the law could curtail their autonomy. Chancellor Angela Merkel has said that Germany's new 'climate cabinet' that brings togehter all climate-relevant ministers will make sure that the law is introduced still in 2019.