For years Germany was seen as a climate protection pioneer, repeatedly pledging steep CO2 cuts at international conferences and achieving reductions for many years. Since the conservative-led government of Chancellor Friedrich Merz took office in May 2025, however, climate action appears to have lost momentum: Economy Minister Katherina Reiche (CDU) favors building new gas-fired power plants, and a previous law promoting renewable home heating has been significantly watered down.
A year with little wind and a cold winter
Presenting the 2025 climate report, Environment Minister Carsten Schneider (SPD) said Germany is meeting its commitments, but only just. Greenhouse gas emissions fell by 0.1% last year; converted into CO2 equivalents, total emissions were 648.9 million tons — about 12.8 million tons below the limit. Schneider warned that progress has been too slow and cited a relatively windless year (forcing gas plants to fill in) and a colder winter (increasing heating demand).
Germany has pledged to cut greenhouse gases to 65% of 1990 levels by 2030; it is currently at a 48% reduction. Further targets include an 88% reduction by 2040. Dirk Messner, president of the Federal Environment Agency, said the priority remains a successful energy transition with rapid expansion of renewables, storage and grid infrastructure, electrification of transport and buildings, and a scaled-up hydrogen economy.
Transportation and building sectors
Transport and buildings remain the main problem areas. Electric vehicles made up about 19% of new registrations last year, meaning most cars still run on petrol or diesel and Germany lags some peers. The heating sector is another major issue. The previous center-left government had required that 65% of new heating systems use renewable energy, prompting record heat pump sales. The new government has reversed that rule under pressure from Reiche, a former gas-industry manager, and will again permit installation of new gas and oil heating systems.
Heavy criticism from the opposition
Schneider accepted the reform reluctantly, still calling heat pumps a “beacon of hope” and urging a move away from oil and gas as they are worse for the climate and costlier long-term. The Green Party, whose former economy minister Robert Habeck helped draft the earlier heating law, criticized the reversal. Party leader Felix Banaszak said Germany is losing momentum on climate protection and that the CDU-SPD coalition is prolonging dependence on fossil fuels.
The reported 3.8% drop in industrial emissions last year reflected primarily a weak economy and reduced production in energy-intensive sectors such as steel, driven by high energy costs, rather than structural decarbonization.
Schneider plans to consolidate measures into a new climate protection law by March 25, but is likely to clash with Economy Ministry colleagues over measures to cut emissions. Reiche and the chancellor seek to push the European Commission to relax rules phasing out internal combustion engines, potentially allowing new petrol and diesel car registrations after 2035 — a move that would complicate reaching Germany’s climate targets.
This article was originally written in German.
