German Chancellor Friedrich Merz told delegates at the Petersberg Climate Dialogue in Berlin that measures to protect the climate must not slow economic or industrial progress. While he pledged that Germany will make “huge efforts” to tackle climate change, he argued policies must be multilateral, ambitious and effective to retain public support and foster growth.
Merz warned against a transition that undoes industrial capacity, saying, “A transition which leads to deindustrialization will not be accepted by the public and will ultimately hinder innovation.” At the same time, he emphasized Germany will “continue to be an important sponsor of public climate action.”
The Petersberg Climate Dialogue, which Germany has hosted alongside UN climate talks since 2010, was originally held near Bonn and now usually takes place in Berlin.
Pointing to economic opportunities, Merz said investment in clean energy is a growth engine. He cited forecasts that the global green-technology market is expected to nearly triple by 2035 to about $2 billion (€1.7 billion), and noted that Germany’s clean-tech sector has grown 50% faster than the overall economy since 2010.
Merz also expressed support for emissions trading, calling it “market-based and technology-neutral,” while urging an update to the EU’s emissions trading system (ETS). He said reforms should clearly prioritise competitiveness to make the system fit for the future. The ETS, established in 2005, caps greenhouse gas emissions and allows companies to buy and sell allowances, effectively requiring major emitters to purchase permits.
Germany is aiming for climate neutrality by 2045, and Merz insisted his government will meet that goal. However, environmental groups have criticized the administration for rolling back some green measures. His coalition has proposed easing the EU ban on combustion-engine vehicles and has supported plans to construct new gas-fired power plants.
Edited by: Karl Sexton