Dispatch from Germany | April ‘26
*** Our weekly Dispatches provide an overview of the most relevant recent and upcoming developments for the shift to climate neutrality in selected European countries, from policy and diplomacy to society and industry. For a bird's-eye view of the country's climate-friendly transition, read the respective 'Guide to'. ***
17 Apr 2026, 11:45
Sören Amelang, Carolina Kyllmann, Benjamin Wehrmann, Julian Wettengel
Stories to watch in the weeks ahead
- Impact of Iran war continues to unfold – The complex and uncertain effects of soaring oil and gas prices on Europe’s and Germany’s energy transition will continue to unfold in the coming weeks and months. On the one hand, more expensive petrol and diesel meant that electric vehicles currently have the highest-ever cost advantage over conventional cars, boosting sales of climate-friendly models. The fossil fuel price shock has also stoked industry interest in green investments such as solar power, electrification and energy efficiency. On the other hand, increasing energy costs have intensified business calls for slowing down decarbonisation to take pressure off companies and households. The gas price hike has also revived a debate over the country’s schedule for phasing out coal, as it has triggered new calls to increase reliance on domestic energy resources. Many of these trends echo developments at the start of Russia's war against Ukraine in 2022, when gas prices also spiked and households and companies scrambled to cope. Commitments to lower fossil fuel dependency were aplenty at the time, but many proved temporary when gas prices retreated. The European Commission is set to unveil measures to combat the fallout of the crisis on 22 April.
- Heating conundrum – The coalition government has once more delayed a final decision on its strategy to make heating more climate-friendly, which is now expected at the end of April. In a first informal agreement presented in February, the parties said they would continue to allow households to install new gas or oil boilers, instead of a climate-friendly alternative such as a heat pump, as previously required. The proposal included a continuation of heat pump subsidies, but think tank calculations suggested the reform will “significantly widen” the existing gap between climate targets and emissions in the sector. The coalition promised to “abolish” the previous government’s law, which caused a huge controversy when it was introduced. The ongoing uncertainty is already weighing on heat pump sales.
- Implementation gap – The heating law is not the only important government energy policy project awaiting delivery. Economy minister Katherina Reiche, a member of chancellor Friedrich Merz’s Christian Democrats (CDU), has announced a break from existing policies – which she described as “self-delusional” in an op-ed – with a focus on costs and competitiveness. But so far, Reiche's ministry has largely failed to deliver on these promises. A concrete timeline for auctions to build gas power plants as a backup for renewables – the power plant strategy eagerly awaited by energy companies – is still outstanding. An overhaul of the legal framework governing renewables hasn’t seen the light of day either. Many experts and journalists have expressed frustration over the lack of progress, while the renewables industry described energy policy as “incoherent”.
- Climate diplomacy intensifies – Against the backdrop of the energy crisis and rising geopolitical tensions, diplomatic efforts to get climate change under control will intensify. High-level representatives from around 40 countries will convene in Germany at the Petersberg climate dialogue from 21-22 April to prepare for November’s UN Climate Change Conference in Turkey (COP 31). This month will also see an international conference on phasing out fossil fuels, a joint initiative by Colombia and the Netherlands, as global efforts to transition away from climate-damaging fuels continue to stall in formal UN climate negotiations [Clean Energy Wire is organising a newsroom at the conference]. NGO Germanwatch called on chancellor Merz to use both conferences to bring clarity to his government’s climate policy uncertainty.
The latest from Germany – last month in recap
- Fuel tax cut controversy – Following a failed attempt to rein in soaring prices at the pump by limiting price rises to one per day, the government agreed on a two-month tax cut for petrol and diesel as relief for motorists and businesses. Echoing complaints by environmentalists, a member of the government’s economic advisory council called the policy “the worst option” of all measures on the menu, as it will boost demand for scarce oil, lessen incentives to switch to low-carbon alternatives, and doesn’t focus on those in need. But the government felt intense pressure to act, as petrol prices have dominated news coverage – and many private conversations – for weeks. The events provided a timely reminder of how deeply the country remains wedded to conventional automobiles. The government also approved a previously announced air traffic tax cut to help the struggling aviation sector.
- Price relief for industry – The EU has approved an electricity price subsidy for energy-intensive industries in Germany, freeing up to 3.8 billion euros in state support until 2028. An industry electricity price - offering the sector a rate of five cents per kilowatt-hour - has been debated in Germany for years, and the current government promised the subsidy at the end of 2025. Companies will be required to reinvest at least half of their savings into decarbonisation measures within four years. Industry and labour associations said that existing EU regulation means most companies will see limited benefit, with economists adding that the scheme risks hampering efficiency improvements and disproportionately benefiting large companies.
- New climate action programme won’t meet objectives – The government presented its eagerly anticipated comprehensive programme detailing how it plans to put the country on track to meeting its climate targets for 2030 and beyond. Even though the programme laid out 67 additional measures with a focus on industry and transport subsidies to reduce emissions, it will be insufficient to reach emissions objectives, according to the government’s key climate advisors. With reference to the Iran war, researchers, NGOs and associations also warned that the programme falls short of driving deeper climate action and cutting fossil fuel dependency.
- Green triumph in state election – The Greens scored a surprise election win in the state of Baden-Württemberg, home to car industry giants Mercedes-Benz, Porsche and Bosch. The state will thus remain Germany’s only region with a government led by the Greens, who are set to continue their coalition with the local branch of chancellor Friedrich Merz’s CDU. The state aims to reach climate neutrality by 2040, five years ahead of the national target. Jobs and the economy dominated the campaign, making the shift to electric mobility a central issue.
Sören’s picks - highlights from upcoming events and top reads
- Bad news for Direct Air Capture – Last year, I researched the fledgling sector of direct air capture (DAC), as part of a package on frontier climate technologies. In a nutshell: the technology is urgently needed at massive scale to keep climate change in check – but it must not become an excuse to delay emission reductions. This is why this New York Times report is pretty bad news: Microsoft, practically the only serious business sponsor of the technology, is pausing its DAC programme.
- Journalism in the AI age – If you keep a watchful eye on the impact of AI on journalism, you should read this thoughtful and relatively hopeful essay by Harvard media expert Shuwei Fang. Some of his predictions really stuck with me – for example, the idea that machines are becoming our primary audience given their editorial agency. But they might also allow billions of people to better comprehend the world, and offer entirely new opportunities for journalists.
- An early heads-up – I’m planning to attend this year’s summit by European electricity industry association Eurelectric in Helsinki at the start of June, as part of a Clean Energy Wire media partnership. The conference will cover many urgent issues such as electrification, security of supply, as well as competitiveness, and I’m very curious about how geopolitics will reshape the conversation. I will host a networking event for accredited journalists at the end of the first conference day. Are you going too? Get in touch.
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