Dispatch from Germany | August '25
*** 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'. ***
Stories to watch in the weeks ahead
Stories to watch in the weeks ahead
- Auctions for new gas power plants – The energy industry is eagerly awaiting a deal in the negotiations between the European Commission and the German government regarding its plans to provide state support for the construction of new gas power plants. The Commission must agree to the support based on state aid rules. Germany’s leadership wants to incentivise the construction of 20 gigawatts (GW) of new gas power plants as much-needed backup for intermittent renewables as the country exits coal, but it is unclear whether a deal would cover such a large volume. Economy minister Katherina Reiche said a first auction by the end of the year (“if possible”) would cover at least 5 GW. The new plants are intended to provide backup capacity to complement intermittent renewable electricity amid the country’s coal phase-out.
- Reality check – The wait for the economy and energy ministry’s highly anticipated energy transition monitoring report goes on. The report, which has been labelled as a “reality check” for the energy transition, will form the basis of the government’s energy policy going forward. But a growing number of critics have warned that it could slow the move to renewables. The final version is scheduled to be completed by the end of August.
- Getting Germany back on track – Environment and climate minister Carsten Schneider promised to present a programme of measures by the end of the year to get Germany back on track towards meeting its national 2030 and 2040 climate targets. The government is legally required to present a programme by March 2026 at the latest. The document should detail how it plans to reduce emissions across all sectors, including transport and buildings, which are as laggard of the energy transition and decarbonisation efforts. Schneider said he wants “political clarity” sooner because Germany has several regional elections scheduled for 2026, so an earlier adoption would guarantee “full political support.”
- Carbon removals – The government is finalising a long-term strategy on negative emissions and plans to present it by the end of September at the latest. Negative emissions, also known as carbon removals, will be necessary to balance out unavoidable residual emissions, such as methane from livestock farming. In addition, as limiting the global temperature rise to 1.5°C looks increasingly unlikely, a temperature overshoot would have to be brought back down by removing more CO2 from the atmosphere than greenhouse gas emissions are being released.
- Solution for railway woes? – Transport minister Patrick Schnieder aims to announce a package of structural reforms to the country’s national railway system and state-owned operator Deutsche Bahn on 22 September. This is sorely needed, as the system is in an increasingly bad state (even causing an identity crisis?). Much of the new 500-billion-euro fund for infrastructure in climate is set to be going to investments in the railway system over the coming years. In a first step towards reforming the railway company, Richard Lutz, Deutsche Bahn head since 2017, was dismissed from his position in mid-August.
The latest from Germany – last month in recap
The latest from Germany – last month in recap
- Green light for CCS on the horizon – Germany’s government cabinet on 6 August adopted a draft law to allow and promote the large-scale build-up of carbon storage and transport infrastructure in Germany. The legal changes would mean that relevant projects are “of overriding public interest”, simplifying planning, permitting and construction. Industry welcomed Germany’s second attempt at the reform, which would allow underground storage under the seabed, and open the door to a broad application of carbon capture and storage (CCS) or utilisation (CCU) as part of climate action efforts – including on gas-fired power plants. The draft must be approved by parliament.
- High-tech – The German government has fleshed out how it intends to build the world’s first nuclear fusion reactor in a “High-Tech Agenda”, which also sets ambitious targets for other technologies it considers key for the energy transition, such as batteries, synthetic fuels, and industrial carbon capture. “Technologies and innovations ‘Made in Germany’ should once again become Germany's trademark and thus a magnet for top talent, investors, and innovative companies,” said the government.
- Phasing out solar support? – Economy minister Katherina Reiche sparked an outcry when she said that new small PV installations no longer required state support. A ministry spokesperson said there were no plans to fully abolish the feed-in tariffs for private solar installations.
- Money, money, money – The federal budget has been in disarray since a landmark constitutional court ruling on German debt rules almost two years ago led to large gaps and worries that the country’s decarbonisation drive could be hit. Despite a reform of debt rules to introduce a 500-billion-euro fund for infrastructure and climate investments, the new government’s draft budgets for 2025 and 2026 include cuts and a reshuffling of priorities. NGOs have criticised a lack of focus on the shift to climate neutrality, while industry welcomed a focus on investments, but said more structural reforms were missing.
Julian’s picks – Highlights from upcoming events and top reads
Julian’s picks – Highlights from upcoming events and top reads
- Green tanks? – Do not get your hopes up too high that Germany’s military build-up will be used to boost sustainable technologies like green steel. My colleague Benjamin Wehrmann wrote this analysis, which finds that, while there is potential, the government shows little sign of wanting to introduce climate requirements for the procurement of arms and equipment, despite plans for other sectors.
- AI updates – I have been listening to the NYTimes’ Hard Fork podcast hosted by journalists Kevin Roose and Casey Newton. It is highly recommended if you want to stay updated on AI news and what the technology could mean for our work as journalists and beyond. Admittedly, quite Bay Area-focused.
- Warming the heart and sparking the mind – We at CLEW continue to have such enriching and lovely experiences hosting journalist fellows from all over the world who come to Berlin with the support of the International Journalists’ Programmes (IJP). The Times’ Ben Cooke from London was with us in early summer (and wrote this blog post about his experiences; also check out his piece on gas grid phase-out plans), and now we have the fabulous Steve Mokaya from Nairobi in our midst. I highly recommend the experience!
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