German Chancellor Friedrich Merz said climate protection measures must not impede economic and industrial progress. Speaking at the international Petersberg Climate Dialogue (PCD) in Berlin, he stressed Germany will make “huge efforts” to combat climate change but warned policies must be multilateral, ambitious and effective to keep public backing and support growth.
“A transition which leads to deindustrialization will not be accepted by the public and will ultimately hinder innovation,” Merz said, while adding that Germany will “continue to be an important sponsor of public climate action.”
The Petersberg Climate Dialogue, hosted by Germany since 2010 alongside UN climate talks, was originally held near Bonn but now usually takes place in Berlin.
Clean energy as driver of growth
Merz highlighted the growth potential of clean-energy investment, noting the global green-technology market is expected to nearly triple by 2035 to about $2 billion (€1.7 billion). “Clean energy has become a driver of growth,” he said, adding that Germany’s clean-tech sector has expanded 50% faster than the overall economy since 2010.
He also voiced support for emissions trading, describing it as “market-based and technology-neutral,” but said the EU’s emissions trading system (ETS) needs updating with a clear focus on maintaining competitiveness to be fit for the future. The ETS, set up in 2005, caps greenhouse gas emissions and lets companies trade allowances, forcing heavy emitters to buy permits.
Germany aims for climate neutrality by 2045. Merz insists the country will meet its targets, but environmental groups have accused his government of rolling back green policies. His coalition has advocated loosening the EU ban on combustion engines and has pushed for building gas-fired power plants.
Edited by: Karl Sexton