The coalition agreement between the new CDU/CSU and SPD government is in place, but what does this mean for climate and energy policy? We asked Judith Schäfer-Gendrisch, Managing Director of IKEM.
What is your assessment of the current sentiment in society and politics with regard to climate protection?
Climate protection and the energy transition continue to enjoy broad public support. However, I am concerned to see that these issues have recently lost priority in the public and political discourse. The best example of this was the German parliamentary election campaign, in which they were actually only discussed in passing. Of course, this trend is not limited to Germany: Not least because of the turbulence emanating from the US, climate policy is increasingly taking a back seat and climate policy measures are losing both urgency and relevance. And this is happening at a time when it is crucial that we continue to push ahead with the sustainable transformation.
What will German climate and energy policy look like under the CDU/CSU and SPD coalition?
In the coalition agreement, the new German government has committed to the goal of climate neutrality by 2045, to the further expansion of renewables and to the phasing out of coal by 2038. That’s great, but now it’s not just a matter of renewing commitments, but of introducing practical measures to actually achieve the climate targets.
Looking at the agreement, the coalition partners’ ambitions unfortunately do not appear to be very high. Instead, climate protection and energy transition measures are to focus more on competitiveness and cost efficiency. This focus is understandable given the current geopolitical and economic situation. At the same time, competitiveness must not be used as an excuse to remain in the age of fossil fuels.
What further areas of focus do you see?
It is not surprising that the coalition is increasingly focusing on market mechanisms such as CO2 pricing and also wants to promote this instrument internationally. What is new is that in the future, CO2 reductions in non-European partner countries should also contribute to achieving Germany’s climate targets. This mechanism may be sensible and cost-effective in individual cases – but here too there is a risk that it could be used as an excuse to lower Germany’s own ambitions.
Which of the German government’s plans are a step in the right direction?
One of the promising points is that work on a power plant strategy is to be advanced and a capacity mechanism introduced. Despite the fact that the coalition agreement remains vague on the details: Both are – in combination with an appropriately designed market integration of renewables – long overdue steps for a future-proof design of the electricity market.
What do you hope for from the new federal government?
It will be crucial that the new government manages to strike a balance between ambitious climate protection and economic stability without jeopardizing the climate targets by making too many compromises. Particularly in view of global instability and setbacks, it is important that Germany remains a pioneer in climate protection and withstands the pressure from some industrial players who are demanding lower climate targets. After all, climate protection is not an obstacle preventing growth, but an opportunity for innovation and competitiveness.
