Environmental Policies
#6Key Findings
With climate change at last coming to the political forefront, Germany falls into the top ranks internationally (rank 6) in the area of environmental policies. Its score on this measure has improved by 0.4 points relative to 2014.
A court ruling forcing revision to the country’s main climate plan has substantially accelerated ambitions. The modified act commits Germany to being greenhouse-gas neutral by 2045, with a 65% reduction in emissions compared to 1990 levels required by 2030. However, reduction targets for 2022 and 2023 appear unlikely to be met.
The country’s CO2 intensity has declined, but remains high by international standards due to the intensity of industrial production. The energy sector still depends heavily on fossil fuels. Nuclear power is slated to be phased out by 2022. A carbon tax was imposed beginning in 2021.
The new coalition has made climate policy a key focus, saying its goal was a “social-ecological market economy.” The country has pushed for ambitious emissions-reduction targets at the international and European levels. The country performs relatively well with regard to health-related environmental hazards, but agricultural practices and biodiversity are areas of concern.
A court ruling forcing revision to the country’s main climate plan has substantially accelerated ambitions. The modified act commits Germany to being greenhouse-gas neutral by 2045, with a 65% reduction in emissions compared to 1990 levels required by 2030. However, reduction targets for 2022 and 2023 appear unlikely to be met.
The country’s CO2 intensity has declined, but remains high by international standards due to the intensity of industrial production. The energy sector still depends heavily on fossil fuels. Nuclear power is slated to be phased out by 2022. A carbon tax was imposed beginning in 2021.
The new coalition has made climate policy a key focus, saying its goal was a “social-ecological market economy.” The country has pushed for ambitious emissions-reduction targets at the international and European levels. The country performs relatively well with regard to health-related environmental hazards, but agricultural practices and biodiversity are areas of concern.
Graph View
Graph View
How effectively does environmental policy in your country protect and preserve the sustainability of natural resources and environmental quality?
10
9
9
Environmental policy goals are ambitious and effectively implemented as well as monitored within and across most relevant policy sectors that account for the largest share of resource use and emissions.
8
7
6
7
6
Environmental policy goals are mainly ambitious and effectively implemented and are monitored within and across some of the relevant policy sectors that account for the largest share of resource use and emissions.
5
4
3
4
3
Environmental policy goals are neither particularly ambitious nor are they effectively implemented and coordinated across relevant policy sectors.
2
1
1
Environmental concerns have been largely abandoned.
In the Environmental Performance Index 2020 (EPI 2020), Germany is ranked 10th among 180 countries, which is a significant improvement compared to 2016 when the country had dropped to 30th place. However, the country’s performance varies substantially across the various dimensions.
The country performs well with regard to health-related environmental hazards, which is due in large part to its high standards of sanitation and quality of drinking water, but in terms of air quality, the exposure to particulate matter results in a less-favorable ranking. Germany uses about one-third of its land for agricultural production. Intensity of production and the negative impact on biodiversity are problematic issues. The country is rich in forests, which cover about 30% of the territory. Despite the controversy regarding the effect of agricultural production on biodiversity, Germany ranks 12th worldwide in the Environmental Performance Index on the issue of ecosystem vitality, but receives low scores on sub-indices such as the protection of biodiversity habitats.
Although the German economy’s CO2 intensity has declined, it is still high by international comparison, in part as a consequence of the still relatively high share of industrial production contributing to GDP. The energy sector still depends to a large extent on fossil-fuel-based electricity production, and the need to transform the energy system is a key challenge. The energy transition is further complicated by the exit from climate-neutral nuclear energy that is to be completed by the end of 2022.
Starting in 2021, companies that bring heating oil, natural gas, petrol and diesel onto the market will pay a CO2 price for these products. While CO2 emissions are priced through the European Emission Trading System, these national rules have now established a CO2 price for the heating and transport sectors as well. This CO2 emission tax will be raised from its starting price of €25 in 2021 to €55 in 2025. The new government has confirmed its intention to continue on this path (Koalitionsvertrag 2021, p. 63).
In a landmark ruling in April 2021, Germany’s Federal Constitutional Court ruled that the government’s climate legislation from 2019 is insufficient, that it lacks details on emission reduction targets beyond 2030 which would unilaterally offload the burden of adjustment onto the future (Federal Constitutional Court 2021). With this innovative intertemporal argument, the Court has seen a violation of citizens’ fundamental rights in the future. Within months, the Grand Coalition has reacted and amended the Climate Protection Act. The amended Act frontloads parts of the adjustment burden and commits Germany to becoming greenhouse gas neutral by 2045, five years ahead of its previous target and also ahead of the EU’s target date. A 65% reduction in greenhouse gas emissions is required by 2030, compared to 1990, instead of the previously set 55%.
Apart from the pandemic, climate change has been one of the key topics addressed during the 2021 federal election campaign, with all parties (excepting the right-wing populist AfD) issuing ambitious plans in their election manifestos. The new coalition has made environmental and climate policy a key leitmotif with its objective to transform the German economic model toward a “social-ecological market economy” (Koalitionsvertrag 2021, p. 25).
In January 2022, the new Minister for Economic Affairs and Climate Action Robert Habeck announced an “opening balance” on climate protection, stating a likely failure to comply with reduction targets in 2022 and 2023. To reduce the backlog, the government plans to start by presenting plans on how to speed up the energy transformation toward renewables with an amended Renewable Energy Law. The law will clarify that renewables serve the public interest and public security. By reformulating policy along these lines, the government hopes to overcome delays and legal resistance from local opponents against windmill constructions.
Thus, despite many open questions, Germany has embarked on an ambitious path that puts the country firmly into the group of climate policy pioneers who want to reconcile the economic model of an advanced industrial country with climate neutrality.
Citations:
EPI (2020): 2020 Environmental Performance Index. New Haven, CT: Yale Center for Environmental Law & Policy.
Federal Constitutional Court (2021): Constitutional complaints against the Federal Climate Change Act partially successful, Press Release No. 31/2021 of 29 April 2021.
Koalitionsvertrag (2021): Mehr Fortschritt wagen, Bündnis für Freiheit, Gerechtigkeit und Nachhaltigkeit, Koalitionsvertrag zwischen SPD, Bündnis 90/Die Grünen und FDP.
The country performs well with regard to health-related environmental hazards, which is due in large part to its high standards of sanitation and quality of drinking water, but in terms of air quality, the exposure to particulate matter results in a less-favorable ranking. Germany uses about one-third of its land for agricultural production. Intensity of production and the negative impact on biodiversity are problematic issues. The country is rich in forests, which cover about 30% of the territory. Despite the controversy regarding the effect of agricultural production on biodiversity, Germany ranks 12th worldwide in the Environmental Performance Index on the issue of ecosystem vitality, but receives low scores on sub-indices such as the protection of biodiversity habitats.
Although the German economy’s CO2 intensity has declined, it is still high by international comparison, in part as a consequence of the still relatively high share of industrial production contributing to GDP. The energy sector still depends to a large extent on fossil-fuel-based electricity production, and the need to transform the energy system is a key challenge. The energy transition is further complicated by the exit from climate-neutral nuclear energy that is to be completed by the end of 2022.
Starting in 2021, companies that bring heating oil, natural gas, petrol and diesel onto the market will pay a CO2 price for these products. While CO2 emissions are priced through the European Emission Trading System, these national rules have now established a CO2 price for the heating and transport sectors as well. This CO2 emission tax will be raised from its starting price of €25 in 2021 to €55 in 2025. The new government has confirmed its intention to continue on this path (Koalitionsvertrag 2021, p. 63).
In a landmark ruling in April 2021, Germany’s Federal Constitutional Court ruled that the government’s climate legislation from 2019 is insufficient, that it lacks details on emission reduction targets beyond 2030 which would unilaterally offload the burden of adjustment onto the future (Federal Constitutional Court 2021). With this innovative intertemporal argument, the Court has seen a violation of citizens’ fundamental rights in the future. Within months, the Grand Coalition has reacted and amended the Climate Protection Act. The amended Act frontloads parts of the adjustment burden and commits Germany to becoming greenhouse gas neutral by 2045, five years ahead of its previous target and also ahead of the EU’s target date. A 65% reduction in greenhouse gas emissions is required by 2030, compared to 1990, instead of the previously set 55%.
Apart from the pandemic, climate change has been one of the key topics addressed during the 2021 federal election campaign, with all parties (excepting the right-wing populist AfD) issuing ambitious plans in their election manifestos. The new coalition has made environmental and climate policy a key leitmotif with its objective to transform the German economic model toward a “social-ecological market economy” (Koalitionsvertrag 2021, p. 25).
In January 2022, the new Minister for Economic Affairs and Climate Action Robert Habeck announced an “opening balance” on climate protection, stating a likely failure to comply with reduction targets in 2022 and 2023. To reduce the backlog, the government plans to start by presenting plans on how to speed up the energy transformation toward renewables with an amended Renewable Energy Law. The law will clarify that renewables serve the public interest and public security. By reformulating policy along these lines, the government hopes to overcome delays and legal resistance from local opponents against windmill constructions.
Thus, despite many open questions, Germany has embarked on an ambitious path that puts the country firmly into the group of climate policy pioneers who want to reconcile the economic model of an advanced industrial country with climate neutrality.
Citations:
EPI (2020): 2020 Environmental Performance Index. New Haven, CT: Yale Center for Environmental Law & Policy.
Federal Constitutional Court (2021): Constitutional complaints against the Federal Climate Change Act partially successful, Press Release No. 31/2021 of 29 April 2021.
Koalitionsvertrag (2021): Mehr Fortschritt wagen, Bündnis für Freiheit, Gerechtigkeit und Nachhaltigkeit, Koalitionsvertrag zwischen SPD, Bündnis 90/Die Grünen und FDP.
Graph View
To what extent does the government actively contribute to the design and advancement of global environmental protection regimes?
10
9
9
The government actively contributes to international efforts to design and advance global environmental protection regimes. In most cases, it demonstrates commitment to existing regimes, contributes to their being advanced and has introduced appropriate reforms.
8
7
6
7
6
The government contributes to international efforts to strengthen global environmental protection regimes. It demonstrates commitment to existing regimes and occasionally contributes to their being advanced and/or has introduced some appropriate reforms.
5
4
3
4
3
The government demonstrates commitment to existing regimes, but does not contribute to their being advanced and has not introduced appropriate reforms.
2
1
1
The government does not contribute to international efforts to strengthen global environmental protection regimes.
Germany is a driving force in international climate policy, in the development of renewable energies, and in efforts to improve energy and resource efficiency. The German government actively promotes strategies fostering environment- and climate-friendly development. The country is one of the countries that have consistently pushed for an ambitious climate policy both at the European level and in international climate negotiations. The country also played a crucial role in deciding on an increased EU climate target of a 55% reduction in CO2 emissions by 2030.
Concerning the climate conference in Glasgow in November 2021, however, Germany was limited in its statements, as the newly elected government had not yet formed a coalition, and the previous government was acting on a caretaker basis (Götze and Traufetter 2021).
In its landmark climate ruling from April 2021, the Federal Constitutional Court further emphasized the government’s responsibility “to involve the supranational level in seeking to resolve the climate problem” (Federal Constitutional Court 2021) which follows from the state’s obligation to protect future generations and their natural source of life as enshrined in Article 20a of the Basic Law.
However, the country’s credibility in international negotiations has suffered in recent years because it has struggled to comply with its own national emission reduction plans. The new government’s ambition to speed up the energy transition (see “Environmental Policy”) is also crucial to maintaining Germany’s leadership in the pursuit of international climate policies.
Citations:
Federal Constitutional Court (2021): Constitutional complaints against the Federal Climate Change Act partially successful, Press Release No. 31/2021 of 29 April 2021.
Götze, Susanne and Gerald Traufetter (2021): Deutschlands überraschend lahme Rolle in Glasgow, Spiegel Online 12.11.2021, https://www.spiegel.de/wissenschaft/mensch/uno-klimakonferenz-deutschlands-ueberraschend-lahme-rolle-in-glasgow-a-bc4647df-1aa8-420d-821b-a094c3c98512 (accessed 19 February 2022)
Concerning the climate conference in Glasgow in November 2021, however, Germany was limited in its statements, as the newly elected government had not yet formed a coalition, and the previous government was acting on a caretaker basis (Götze and Traufetter 2021).
In its landmark climate ruling from April 2021, the Federal Constitutional Court further emphasized the government’s responsibility “to involve the supranational level in seeking to resolve the climate problem” (Federal Constitutional Court 2021) which follows from the state’s obligation to protect future generations and their natural source of life as enshrined in Article 20a of the Basic Law.
However, the country’s credibility in international negotiations has suffered in recent years because it has struggled to comply with its own national emission reduction plans. The new government’s ambition to speed up the energy transition (see “Environmental Policy”) is also crucial to maintaining Germany’s leadership in the pursuit of international climate policies.
Citations:
Federal Constitutional Court (2021): Constitutional complaints against the Federal Climate Change Act partially successful, Press Release No. 31/2021 of 29 April 2021.
Götze, Susanne and Gerald Traufetter (2021): Deutschlands überraschend lahme Rolle in Glasgow, Spiegel Online 12.11.2021, https://www.spiegel.de/wissenschaft/mensch/uno-klimakonferenz-deutschlands-ueberraschend-lahme-rolle-in-glasgow-a-bc4647df-1aa8-420d-821b-a094c3c98512 (accessed 19 February 2022)