RWE CEO Markus Krebber is calling for Germany’s climate targets to be spread out over a longer timeframe and for the target date for climate neutrality to be pushed back from 2045 to 2050. He considers Germany’s previous go-it-alone approach—which diverged from the EU’s 2050 target—to be economically damaging and ineffective in terms of climate policy. IGBCE leader Michael Vassiliadis supports the proposal, as high energy costs, a sluggish economy, and short investment horizons place a heavy burden on energy-intensive industries in particular. However, the statutory target remains in place unless the Bundestag amends the Climate Action Act.
Krebber warns against a costly German go-it-alone approach
Germany aims to achieve climate neutrality five years earlier than the European Union. However, Krebber sees no added benefit for climate protection in this. “The German go-it-alone approach of aiming for climate neutrality five years early merely makes Germany a more expensive location for industry, without yielding any climate policy benefits.”
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Krebber bases his position on the European emissions trading system. If German emissions fall more rapidly, companies in other member states can simply utilize the certificates that remain available. “After all, the CO2 emissions saved in Germany are then simply released in other EU countries.” For this reason, the RWE CEO is calling for at least ten years of planning certainty for industrial investments.
Emissions trading becomes a key point of contention
The IGBCE union is also demanding that the timeline for the annual reduction of emission allowances be extended. Under its proposal, the reduction trajectory would not conclude until 2050. This would give new technologies more time for development, scaling up, and commercial operation. However, changing the German target year would not automatically adjust the European trajectory for certificates.
Support also comes from IW President Michael Hüther and MIT head Gitta Connemann. She advocates for an emissions trading system that facilitates investment and keeps industrial production in Germany. Mathematically, the current ETS trajectory leads to a certificate supply of zero by 2039. Consequently, the EU is already discussing reform and potential emissions beyond that date.
Projections indicate Germany will miss key climate targets
Germany’s Climate Action Act mandates a reduction in greenhouse gas emissions of at least 65 percent by 2030 compared to 1990 levels. Furthermore, emissions must fall by at least 88 percent by 2040. Finally, the law prescribes net-zero greenhouse gas emissions by 2045. By 2025, emissions were already 48 percent below 1990 levels. Nevertheless, the CDU, CSU, and SPD are sticking to the 2045 target year.
However, projections by the German Environment Agency anticipate a reduction of only 62.6 percent by 2030. Moreover, the outlook for 2040 suggests a decline of just 80 percent. The Expert Council on Climate Matters also expects a significant shortfall in meeting the 2030 target. While allowing more time could ease pressure on investment cycles, it would not resolve issues such as high energy prices or the lack of grid capacity and hydrogen infrastructure.
Author: Blackout News
Sources: Welt (11.07.26) – Handelsblatt (11.07.26) – Tagesschau (11.07.26) – Merkur (11.07.26)