The incoming German government has announced plans to phase out coal by 2030 – eight years earlier than planned.
Germany’s Social Democrats, Greens and Free Democrats, who are to form a new government, agreed on plans this week, as well as a plan for bringing the country’s renewable power to 80% by 2030. Plans also include installing 30gw of offshore wind by 2030.
“We will align our climate, energy and economic policies nationally, in Europe and internationally with the 1.5 degree path and activate the potential at all levels of government,” the coalition agreement said.
The Principles for Responsible Investment has welcomed the announcement. Dustin Neuneyer, head of Germany and Austria, said: “Electricity tax cuts and additional social support will help ensure a socially just and economically competitive transition. At the same time, the government takes on the important task of transforming its energy infrastructure into a ‘climate neutrality grid’ and supports ambitious carbon pricing, next to circular economy and nature-based solutions.
“It also strives to become a leading hub for sustainable finance as a means to financial market stability and supports unified European standards on ESG ratings and sustainability risk reporting, including greenhouse gas emissions. It also creates planning security and provides massive sustainable investment opportunities, across industry, buildings, infrastructure, transport, and others. It is now the private sector’s turn to take up the baton and accelerate this agenda in their investment decisions.”
