Dispatch from Germany | August ‘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'. ***
28 Aug 2026, 11:00
Sören Amelang, Carolina Kyllmann, Benjamin Wehrmann, Julian Wettengel
Stories to watch in the weeks ahead
- Low gas storage levels - The US- and Israel-led attack on Iran has thrown global fossil fuel markets into turmoil and quickly led to warnings from the likes of the International Energy Agency (IEA) against possible gas and oil shortages and price hikes in the event of a prolonged conflict in the Persian Gulf. But, contrary to 2022, when Russia’s attack on Ukraine triggered a rush to find alternative sources of energy, the response in Germany has been much more muted this time. The country’s gas storage filling levels stood at about 50 percent in August, well below their average in previous years. As household gas prices climbed to a three-year-high, storage operators are holding back on purchases in the hope that prices eventually go down again. The economy ministry, which is responsible for monitoring gas supply, said that storage levels alone are not decisive, as imports via pipeline or LNG shipping, joint European reserves and demand flexibility all determine availability. However, gas market experts have voiced concerns about Germany’s ability to contribute to European supply security in the coming winter, given that its planned national strategic reserve won’t be ready. Gas grid operator association FNB Gas said the storage target of 80 percent by 1 November "is now virtually unachievable". While Germany’s grid agency (BNetzA) warned against interventions, as traders may bet on the state to ultimately buy gas at high prices, market analysts said that a particularly cold winter could necessitate government action to ensure supply security.
- State elections galore - Three of Germany’s 16 states – Saxony-Anhalt (6 September), Berlin, and Mecklenburg-Western Pomerania (both 20 September) – will elect their governments next month. The far-right party Alternative for Germany (AfD) is polling strong in all three states and also ranks first in polls at the national level, raising questions among other parties, and especially in chancellor Merz’s conservative CDU, about which coalitions could keep the AfD out of power – or whether the far-right’s success requires more openness for cooperation. In Saxony-Anhalt, the party that rejects the energy transition and the scientific consensus on human-made global warming could even win an outright majority, causing concerns among climate activists and the renewable energy industry about the state’s future course on decarbonisation and the roll-out of new wind and solar power projects. While the country’s wider energy transition and emissions reduction efforts are mainly decided at the federal level and therefore unlikely to be directly affected by the state elections, a strong showing by the AfD could still provide climate action opponents with a stronger political base to exert influence on national policy. It could also further shake the authority of chancellor Merz, who once promised to “halve” the far-right’s support, but has instead seen the party ascend to record polling levels under his leadership.
The latest from Germany – last month in recap
- “This is climate change” - The summer of 2026 has become a forceful reminder for Germany of the perils of global warming. Like in many other parts of Europe, recurring heatwaves and a persistent drought brought severe consequences for the environment, public health, infrastructure and the wider economy. With record temperatures beyond 40 degrees Celsius and prolonged periods of exceptionally warm weather, Germany’s Meteorological Service (DWD) concluded that the country had crossed a threshold regarding its climate and now faced heat stress risks that had previously been far more common in Mediterranean countries. The extreme heat and drought led to thousands of heat-related deaths, extensive harvest losses, large forest fires, low river levels, as well as a spike in cooling demand, and is estimated to cost the country tens of billions of euros. It also spurred a debate within the coalition government about state and federal responsibilities for climate adaptation, as citizens increasingly regard better preparation for rising global temperatures as a priority. Easier access to air conditioning, better water management, more resilient infrastructure and natural habitats, as well as regulation that accounts for the increase in extreme weather conditions, are among the measures many experts consider necessary to ensure that the country becomes more capable of handling future heat waves. “The regrettable reality is that we must expect the number of such events to rise,” Merz said in late August during a visit to a region devastated by a forest fire. “This is climate change.”
- Renewable rollercoaster - Wind power and solar PV are both seeing dynamic growth rates in Germany, and renewables accounted for a record 58 percent of electricity consumption between January and June. Reforms implemented in recent years are beginning to bear fruit and allow faster planning and licensing, which the country urgently needs to meet its 2030 renewable capacity targets. Solar capacity surpassed the mark of 128 gigawatts (GW) in August, while new onshore wind turbine approvals reached a record capacity of 9 GW in the first half of the year. But despite this string of success stories, the renewables industry looks to the future with great concern: Planned changes to grid regulations and feed-in rules could “massively worsen funding conditions” for new renewable energy projects, said wind power industry lobbyist Bärbel Heidebroek. The government plans to end support for certain renewable energy categories and to reduce compensation for curbing new installations' electricity generation in areas with limited grid capacity. The renewables industry says these steps will pull the rug from under many projects, especially from smaller investors. Carsten Körnig, chief lobbyist of the solar industry, warned that “anyone who concludes from this that solar expansion will now run on autopilot is mistaken”. He urged lawmakers to amend both laws before giving the green light in parliament.
- Unmonitored coal phase-out - Five years after Germany adopted its law on ending coal-fired power generation no later than 2038, the government planned to publish a first stock take of the phase-out’s impact on energy supply security, power prices, greenhouse gas emissions, and coal mining regions in August. Previous reports were all cancelled without replacement due to the energy crisis caused by the Ukraine war and the previous government’s collapse. But the deadline passed without the highly anticipated report. The economy ministry said it will wait for the results of this year’s auctions for new gas-fired power plants and incorporate them into a monitoring report now planned for mid-2027. The new gas plants are seen as a prerequisite for shuttering coal plants to ensure the country has sufficient backup capacity to supplement its intermittent renewable power output. The report is meant to assess whether the national coal exit can be pulled forward to 2035, and whether a regional 2030 exit deadline in the western part of the country can be kept. However, rising prices for CO2 emissions could mean that coal-fired electricity production becomes economically unviable well before the 2038 end date, with some researchers estimating 2032 to be a likely end date for coal in Germany.
- Botched cabinet reshuffle - Germany’s then-transport minister, Patrick Schnieder, found himself without a job after chancellor Merz opted for an overhaul of his government cabinet right at the beginning of parliament’s summer recess. The reshuffle became necessary after Jens Spahn, the parliamentary group leader of Merz’s conservative Christian Democrat Union (CDU), resigned amid a surrogacy controversy, which in a string of moves also brought the country a new health minister and a new chief of the chancellery. However, the firing of Schnieder had no apparent connection to the other staffing decisions and brought Merz heavy criticism from the former transport minister’s allies within the CDU, with one senior party member reportedly telling the chancellor to bear in mind that he is “running a political party, not a business”. While Merz quickly found a replacement for Schnieder in Steffen Bilger, his authority within the CDU took a hit – just when the chancellor’s individual approval ratings fell to the lowest level ever recorded by pollster Forsa for a head of government in Germany.
Benjamin’s picks - highlights from upcoming events and top reads
- Frozen archives - The 2025 book “Ends of the Earth” recently gave me some time to cool off during Germany’s summer heatwaves, as the author Neil Shubin took me on a journey to the North Pole and the South Pole. Far from being mere icy caps that only see polar bears, penguins and the occasional researcher, the remote lands and waters of the Arctic and Antarctic have a fascinating story to tell, stretching from aeons in the past to our immediate present. Shubin shows us how global warming brings disruption at a pace that these still frozen wildernesses are not accustomed to, but manages to do so without veering into hopelessness. Instead, he reminds us how scientific curiosity, professional determination and a love for life and nature can turn big ideas into reality.
- Happy tree friends - The website “Giess den Kiez” (water the neighbourhood) has been one of the more fascinating internet discoveries I made in the past months. Supported by the City of Berlin, the site that is also available in English has mapped every single tree on public land in Germany’s capital (or so it seems), providing readers with information on their species, age, and watering needs. The idea is to encourage citizens to “adopt” trees in their neighbourhood and help ensure that the city’s greenery is kept in shape and good health amid ever hotter and drier summers. Knowing more about the trees around you makes this adoption easier, I believe, especially after finding out that the European plane tree in front of my house is already more than 150 years old. Wow.
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