On Wednesday, 9 April, the upcoming German government coalition of CDU and SPD presented a joint political platform, a ‘coalition contract’ which will now have to be approved by SPD voters in an election due to take place shortly. The Bundestag vote to formally approve the new government is scheduled for 7 May.

From a carbon perspective, it is worth noting that climate and energy sit as part of the first chapter, “New Economic Growth, Good Work, Joint Effort”, in the 146-page document that covers a wide range of policy areas.

The document expresses clear support for a European interim climate target for 2040 of 90 percent emission reduction compared to 1990, but lists some conditions. First, that a limited amount of permanent and sustainable negative emissions may be counted (in addition to the primary goal of CO₂ reduction in Germany). Second, that “credible CO₂ reductions from highly qualified, certified, and permanent projects” (up to a maximum of three percentage points of the 2040 interim target) in non-European partner countries may also be counted in.

This call for a ‘flexible’ 2040 target will be important for the Commission to take into account when finalising its 2040 target proposal, which, according to the latest signals, will be presented before summer. The German position will carry weight, since Berlin can count on support from several other member states. Also, the call for flexibility aligns with recent comments from senior EPP lawmaker Peter Liese (Germany, CDU) in the European Parliament.

The two government partners stress their commitment to “advance emission trading internationally, while keeping a close eye on the competitiveness of our economy and social acceptance, and […] pursuing an economically sustainable price trajectory”. The latter point indicates concern about the future price trajectory and seems to indicate a willingness to intervene if necessary.

The coalition supports the introduction of EU ETS 2 for road transport and heating, to create equal conditions across Europe. This is unsurprising, since Germany already has a national ETS for sectors now becoming covered in ETS2 and shows that Berlin is keen to ensure a level playing field with other member states.

Furthermore, the document envisages a continued expansion of the “full spectrum of renewable energy (solar, wind, biomass, hydro, geothermal) and innovative technologies (e.g., wastewater heat, airborne wind turbines)”. Again, this is not surprising, but it will possibly reassure some who had suspected CDU would limit support to renewables.

Regarding heat pumps, another controversial topic in Germany, the text states that renovation and heating subsidies will be continued, and that the promotion of heat pumps, both in new construction and in existing buildings, will be designed to be “technology-neutral, simple, and investment-friendly”.