Germany’s path to climate neutrality is laid out in the Climate Change Act. Following a ruling of the Federal Constitutional Court, and with a view to the new European climate target for 2030, the German Federal Government has now presented a Climate Change Act 2021. The court ruling obliges the state to take action to prevent any future disproportionate restrictions in the fundamental liberties of today’s young generation. With the new Climate Change Act the Cabinet has accepted the particular challenges posed by climate change.

Stricter climate target by 2030

The amendment provides for raising the carbon dioxide (CO2) emission reduction targets. The target for 2030 is to be increased by 10 percentage points, to at least 65 percent. This means that by the end of the decade, Germany is to reduce its greenhouse gas emissions by 65 per cent of the 1990 levels. This even more ambitious target will impact on the CO2 reduction targets in individual sectors including energy, transport and the building sector up to 2030.

Greenhouse gas neutrality by 2045

For 2040 the reduction target is a minimum of 88 per cent. Along the road to this goal, the Act lays down specific annual reduction targets during the 2030s. By 2045 Germany is to become greenhouse gas neutral. This means that there must be a balance between anthropogenic greenhouse gas emissions from sources and the removal of such gases. From 2050 onward, Germany aims to have a negative emissions balance, meaning that it would then remove more greenhouse gases using natural sinks than it emits.

Strengthening natural sinks

The draft legislation stresses the contributions to the climate made by natural ecosystems. Forests and moors act as carbon sinks; they are what is termed natural sinks. They are important in order to bind remaining unavoidable emissions of greenhouse gases. The Federal Government thus specifies concrete targets in order to improve the impact of natural sinks in binding carbon dioxide. 

Immediate action programme for more climate action

Parallel to the amended Climate Change Act, the Federal Government has adopted a declaration on the Climate Pact for Germany. A large number of supportive measures in the different sectors will be needed in order to achieve the goals set out in the Climate Change Act 2021. The Federal Government will be presenting an immediate action programme to this end. Measures will focus on industry, climate-friendly mobility, agriculture and the building sector. Additional funding of up to 8 billion euros has been earmarked.

Coordinating climate action at European level

At European level, the European Commission has still to make concrete proposals regarding measures for greater climate change mitigation. Logically, the amended Climate Change Act thus provides for an evaluation in 2022 in line with European regulations. The goal must be to have a well coordinated mix of instruments at European and national level.

The road to climate neutrality

With the amended Climate Change Act, the Federal Government not only intends to ensure greater intergenerational justice. It will also put in place a more secure basis on which to plan. The road to climate neutrality is now set out in even more detail. Here is an overview of the milestones:

• Cabinet decision on 12 May 2021: Increase in annual reduction targets per sector for the period 2023 to 2030 and enshrining the annual reduction targets for the period 2031 to 2040 in law
• 2024: Determination of the annual reduction targets by sector for the period 2031 to 2040
• No later than 2032: Determination of the annual reduction targets for the period 2041 to 2045
• 2034: Determination of the annual reduction goals by sector for the final phase leading up to greenhouse gas neutrality (2041 to 2045)