“Climate Action Law has the right aim but relies on inadequate instruments” – op-ed

In an op-ed in Handelsblatt, Klaus Stratmann argues that the draft Climate Action Law’s rigid sector targets don’t allow for innovation that could make future emissions cuts more practical and more affordable in some sectors compared to others. “The draft defines climate targets but, in many cases, leaves questions about feasibility and profitability unanswered,” Stratmann writes. He says the law is excessively restrictive on some areas of the national economy, while potentially giving businesses too much leeway in others. “It would be of greater benefit to climate action if the coalition government came round to introducing a price on CO2 – as the environment minister has been calling for for months,” Stratmann writes. Putting a price on emissions across all sectors while cutting taxes, levies and charges in the energy sector, would discourage fossil fuels use and divert investment, he argues.

German Environment Minister Svenja Schulze (SPD) presented a first draft of the framework Climate Action Law last week for “early coordination” with Angela Merkel’s chancellery. First reactions to the draft showed a divide between SPD politicians and the renewable industry, who welcomed the proposal, and conservative and pro-business parties, who criticised the design of the law.