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Dispatch from Germany | February ‘26

An unusually cold winter in many parts of Germany is seeing heated debates around the country's energy transition continue without interruption, while many observers find themselves stuck in a constant state of waiting. Reforms to Germany’s clean heating law, leaked drafts on reducing support for new renewable energy projects, and measures aimed at putting the country on track to meet its 2030 climate targets have, so far, provided limited clarity and often pose more questions than give answers.

*** 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 Feb 2026, 15:45 Sören Amelang, Carolina Kyllmann, Benjamin Wehrmann, Julian Wettengel

Stories to watch in the weeks ahead

  • Renewables could lose grid priority – A leaked draft of the economy ministry’s “grid package” caused much uproar in the renewables industry and the opposition. The ministry suggested better aligning renewable and grid expansion by reducing grid privileges for new projects, especially in areas where bottlenecks prevent electricity from being used. The renewables industry said this could slow down the energy transition, while clean energy providers said the government should focus on boosting electricity demand flexibility instead. The ministry is still working on the proposal, and a spokesperson told CLEW it would present legislative changes publicly “in due course”. Power market analysts agree that more granular price signals at different times or locations are needed to better align renewable investment and generation with grid conditions, supporting both reliability and affordability during the transition.
  • Putting Germany’s emissions on track – The government has until 25 March to present a comprehensive programme detailing how it plans to put the country on track to meet its target of reducing emissions by 65 percent by 2030, compared to 1990 levels. A leaked draft of the Climate Action Programme 2026, however, failed to clearly show how the government plans to close emission reduction gaps by the end of the decade, especially in the transport and buildings sectors. Against the backdrop of a recent court ruling saying that the government’s previous climate programme requires additional measures to comply with climate targets, negotiations within chancellor Friedrich Merz’s government are still ongoing.
  • Clean heating left out in the cold – The reform to Germany’s law to transition to clean heating remains in limbo, despite government promises first to “abolish” the law, then to have key points ready by the end of January, and finally to adopt the reform by the end of February. No new details on changes to the law, which caused huge controversy when it was introduced by the previous government, have been disclosed. Meanwhile, utilities are advancing plans to decommission or transform their gas grids, and the June deadline for large cities to present plans detailing where district heating networks will be available, and when, looms large. Some utilities are pushing for the government to abolish heat pump subsidies for homes that could be connected to district heating in the future, arguing that investments to expand the networks make little sense if most households have already switched to heat pumps.
  • Car powerhouse state election – The state of Baden-Württemberg, home to car industry giants Mercedes-Benz, Porsche and Bosch, will head to the polls on 8 March. It is Germany’s only region with a government led by the Green Party, who rule in a coalition with chancellor Friedrich Merz’s conservative CDU party. After 15 years at the helm of the affluent state with a large but currently troubled auto industry, Green state premier Winfried Kretschmann is stepping down. Current polls suggest that the vote will likely produce the same coalition – but this time under CDU leadership. The state aims to reach climate neutrality by 2040, five years ahead of the national target. Jobs and the economy dominate the campaign, making the shift to electric mobility a central issue. While the Greens emphasise the economic opportunities of the transformation, the conservatives warn against “overburdening the economy with climate targets”. The election is the first in a string of five state elections this year.

The latest from Germany – last month in recap

  • Green light for Germany’s gas plants – Germany and the European Commission agreed in principle to allow state support for new backup gas-fired power plants that can later be converted to run on hydrogen, with the first units due to be operational by 2031. The plan aims to ensure electricity supply security as Germany exits coal and expands renewables, and the industry has been eagerly waiting for the auctions for years.
  • Turning North Sea into energy hub – Countries bordering the North Sea announced a major investment plan to boost offshore wind electricity production, aiming to turn the windy region into the “world’s largest energy hub”. The agreement comes against the backdrop of strained relations with the US, ongoing security concerns over potential attacks on European infrastructure, and a shifting mood over the industry’s outlook. Germany’s government postponed a round of auctions scheduled for February to next year, after the industry warned that bidders might shun the tender due to investment uncertainties.
  • Energy security in the spotlight – Energy security was put firmly back on the agenda after an arson attack caused a blackout that left tens of thousands of homes in south-western Berlin without power for days in January. Germany’s parliament adopted a law aimed at improving the protection of critical infrastructure against physical or cyber-attacks, as police recorded hundreds of sabotage incidents last year. Chancellor Merz, meanwhile, travelled to India and the Middle East to cooperate on clean energy.
  • Decelerating climate protection – Germany’s emissions fell only marginally in 2025, with higher pollution from buildings and transport dragging down overall climate progress, according to figures by think tank Agora Energiewende. The pace of reduction more than halved compared to the previous year, which was marked by an economic slump, slowing down Germany’s progress towards reaching its 2030 climate targets.

Caro’s picks - highlights from upcoming events and top reads

  • I’ve watched many hours of the Winter Olympic Games, constantly being amazed, inspired, and marvelling at human prowess. However, climate change is limiting where it is physically and financially possible to host the Games. This documentary by public broadcaster ARD (in German) on the host city’s sustainability pledges masterfully breaks down all perspectives. I’ll be travelling to Los Angeles on a research grant later this year to learn how a city so recently devastated by wildfires is preparing to host the Summer Olympic Games – scrutinising sustainability and resilience decisions as they are taken – and how these beloved events change as a result of global warming. You can look forward to that reporting too! 
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