German government agrees 'climate pact' to reach more ambitious targets

Germany's government has agreed on a "climate pact" that sketches out steps to achieve the more ambitious emission reduction targets approved by cabinet this week. In addition to previously agreed measures, the government will allocate up to eight billion euros to finance further climate measures from 2022, according to the paper. "To achieve the target, a bundle of supporting measures in the energy, transport, industry, buildings and agriculture sectors is required," the paper states. The government this week greenlighted the necessary legal changes to speed up the country's bid for climate neutrality, aiming to hit the goal five years earlier in 2045. It also agreed to step up the 2030 target for emission cuts to 65 from 55 percent, tougher emission budgets in all sectors, and new reduction targets for the 2040s.

The "climate pact" singles out an "investment pact with industry for climate-friendly production in Germany" to speed up emission cuts in sectors with high process emissions such as steel, chemicals and cement. Speeding up to rollout of a hydrogen economy, with a particular emphasis on offshore production, is named as a further key focus. To accelerate the move to clean mobility, the government plans to speed up the shift to electric cars and extend rail infrastructure, according to the paper. In the building sector, it wants to increase the use of renewable energies, boost climate-friendly renovations, and increase efficiency standards for new constructions. "To finance part of the expenditure for climate protection, the dismantling of climate-damaging subsidies will be examined," the paper states. It adds the government will present a "programme for immediate action" in the coming weeks "which will focus on fast-acting and highly efficient measures beyond more far-reaching structural instruments."