Unlocking the Future: What Germany’s CDU Energy & Climate Policy Means for You

What the Recent German Election Means for Climate Action

The German election results indicated that the CDU, led by Friedrich Merz, is set to form a coalition government, likely partnering with the SDP. This raises questions about the future of the country’s climate policies. Let’s break it down into five key points.

1. Little Change in Climate Action

Germany’s previous government struggled to agree on climate measures to meet its 2030 targets. In this election, climate issues took a backseat, with only 13% of voters prioritizing them, down from 22% in 2021. This shift might explain the Greens’ disappointing performance. The election results suggest a continuation of current climate policies, with the CDU committing to achieving climate neutrality by 2045 and a 65% reduction in emissions by 2030.

However, the Climate Policy Council warns that Germany is on track to miss both its national and EU climate goals, signaling a need for new policies. The CDU plans to raise carbon taxes, while the SDP aims to boost the heating and transport sectors, likely resulting in a blend of both approaches.

2. Focus on Transport, but Limited Industry Support

The CDU is under pressure regarding the struggling car industry, blaming previous policies. Merz hasn’t committed to providing the support the industry seeks for its transition to greener technologies. Instead of reinstating the electric car bonus, the CDU prefers to stimulate market solutions like e-fuels.

There is support for investing in railways and making the popular Deutschland Ticket permanent. However, the high costs and budget constraints might hinder these plans.

3. Energy Market: Lower Prices Promised

High energy prices have been a hot topic. The CDU promises that some climate funding will go towards reducing electricity costs, aiming to lower prices to 0.05 euros per kWh. They might also ditch some renewable energy requirements for new heating systems to allow for cheaper alternatives.

This broad approach raises concerns for companies like Thyssenkrupp, which aims to develop fossil-free steel by 2027, but now faces delays due to political uncertainty.

4. Climate Adaptation: Funding Challenges

Germany has faced severe climate-related flooding, prompting the government to introduce climate adaptation laws. However, the new government must address funding and accountability issues. These discussions will likely be complex due to Germany’s federal structure and varying regional interests.

5. EU and Global Leadership Opportunities

On the EU stage, the CDU plans to better align climate and industrial policies, aiming to revise some existing regulations. With smaller countries presiding over the EU Councils, Germany has a chance to enhance its leadership role, especially at upcoming international climate meetings like COP30 in Brazil.

Looking Ahead

The new government must be formed by March 24, which could pressure the CDU and SDP to solidify their plans. Overall, it seems Germany’s climate and energy policies will largely continue as before, prioritizing cost-effectiveness over specific incentives.

In summary, while the recent election may not lead to drastic changes in climate policy, it signals a shift towards a more pragmatic approach to climate action in Germany.