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17 Dec 2024, 13:42
Benjamin Wehrmann
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Germany

Germany’s Green Party adopts draft election programme with focus on climate neutral economy

Clean Energy Wire

The Green Party is calling for major investments in Germany’s infrastructure, energy system, industry and administration to use decarbonisation and the energy transition as an opportunity for strengthening the economy. The party of economy minister and vice chancellor Robert Habeck, who will lead the Greens into the upcoming snap elections on 23 February, released a draft of its election programme. Contrary to the last election in 2021, which took place shortly before the peak of the energy crisis and Russia’s invasion of Ukraine, the Greens this time campaign not as an opposition party but as part of the outgoing coalition government.

“To renew and not only administer our prosperity, we need a state that makes it easier and not harder for people and for businesses to implement their ideas,” the party said. “Prosperity of tomorrow is climate neutral,” the Greens argued, adding that there is “no way back into the fossil industry museum.” The ongoing challenges for Germany's economy to regain its industrial strength are a core topic for many voters in the election.

The draft proposes a reform of the country’s constitutional limit on new borrowing, the debt brake, as one instrument for unlocking more investments. The money should go into a ‘Germany Fund’ that is linked to the debt brake’s reform. Previous governments led by the conservative Christian Democrats (CDU) have “worn the country down,” the Green Party argued. A balanced budget under the CDU had only been achieved “at the expense of the future,” while the country needed investments “to function for all.”

The party said it wanted to keep popular policy projects from the outgoing coalition government, such as the flat rate public transport ticket “for a guaranteed 49 euros,” meaning the planned price rises would be ruled out. The Greens also propose to reduce electricity prices by lowering the electricity tax and “to a large extent” covering grid fees for long-distance transmission lines from the state budget.

The end of the combustion engine vehicles is again part of the conservationist party’s programme, as is a “measured and reliable emissions trading system.” The Greens said the past three years had enabled the country to embark on a reliable decarbonisation path that would give companies planning security. “In the expansion of renewables, we have demonstrated how fast our country can be,” the party said, adding that “we now bet on investments and simplification to follow this path further.”

Investments should be spurred, for example, through a lump-sum premium of ten percent that companies can get deducted from their taxes (except for investments in buildings). The party also intends to continue or introduce state support programmes. “We create clearly socially oriented support programmes,” for example for modernising buildings or the purchase of electric vehicles.

The Greens also renewed their call for introducing a climate bonus (Klimageld) for households with low or medium income “to master the transition into a climate neutral future.” The measure had already been part of the party’s last election programme but did not bear fruit due to a lack of funds and a functioning payout mechanism to citizens in Germany’s financial administration.

The election programme's draft will be decided early next year and likely no later than at a party convention on 26 January. Germany is headed for the snap elections after chancellor Olaf Scholz’s coalition government broke up in November. Climate and energy policy played a major role in the coalition break-up, and many decisions key for reaching binding 2030 climate targets are in limbo. Putting the country on track for its numerous emissions cutting and energy transition ambitions until the end of the decade will be the task of the next government. The Greens currently poll slightly below their result at the last election of 14.5 percent but still could enter a new government coalition.

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