Dispatch from Germany | November '25

Stories to watch in the weeks ahead

• Germany’s offer at COP30 – German chancellor Friedrich Merz, development minister Reem Alabali-Radovan and climate minister Carsten Schneider will attend the annual UN climate negotiations (COP30) in Brazil. Germany will go to Belém “with something to offer” on climate topics and sees climate foreign policy as a “door opener” for new strategic partnerships, according to Johann Wadephul, the country's chief diplomat.
• Raw material independence – We are expecting an “action plan” addressing strategic dependencies on critical raw materials by the end of the year. Materials such as lithium and copper are needed for electric cars or wind turbines. Germany’s newly appointed security council will draft the plan and include measures such as strengthening domestic mining and the circular economy.
• A cost-efficient energy transition – Germany’s energy transition can no longer be planned in silos: growing power demand, renewable capacity expansion, grid modernisation, and flexible capacities all need to be planned in sync, key stakeholders have said. In its 10-point plan published in September, the economy ministry echoed this sentiment, and is drafting legislation and reforms to future renewables support schemes, grid financing mechanisms, and large-scale battery connections.
• Energy industry grows impatient – Germany will not hold auctions for new backup gas power plants before the end of the year, and it could be months before the government comes to an agreement with the EU and finalises the respective law. “Given the need for electrons globally, we need to come to grips with this now and see the tenders come out,” said Markus Becker from gas turbine maker GE Vernova. The company has previously voiced concerns over Germany’s “very ambitious” plans for new backup electricity capacity – which were first announced in early 2023. “No one is investing in power plants, because everyone is waiting for the investment framework to come in,” Timon Groß, sustainable power system expert from energy industry association BDEW, told CLEW. A capacity market to further support these new plants is on the cards for 2027.
• Cleaner heating – A contested election promise to “abolish” Germany’s so-called heating law has been quietly swept under the rug. According to media reports, the buildings and economy ministries are still “preparing the amendment” to the law that stipulates the gradual phase out of oil and gas boilers and cannot give further details. The government has commissioned an expert opinion on implementing the Energy Performance of Buildings Directive (EPBD) – an EU law to make buildings more energy efficient – which is part of the ‘heating law’ revision. An update could come within weeks or months.

The latest from Germany – last month in recap

• Supporting industry – Heads of government just met with steel industry representatives to find ways to help the sector, which is struggling in the transition to clean production while it faces trade conflicts, overcapacity and international competition. Following the “steel summit”, the government pledged to reduce energy prices in Germany and push for changes to the EU’s carbon border tariff system. Support measures were earlier promised for the car sector too, which faces similar woes. Germany announced the introduction of a discounted electricity price for industry starting in January 2026.
• Expensive hydrogen – Supply and demand for hydrogen are forecast to remain well below targets by 2030 despite billions in subsidies to build up the sector, Germany’s Court of Auditors has said. Germany has not yet solved the hydrogen “chicken and egg” dilemma and should revise its strategy to focus more on cost-efficiency, the budget watchdog added.
• Plans to end gas heating – German local utilities should be able to refuse connection requests to gas grids and to disconnect users where businesses no longer see a future for the infrastructure, according to a draft law by the economy ministry. Local utilities had lamented that a lack of rules on phasing out or converting gas grids, as well as how costs would be allocated, remain major obstacles to transition planning. Industry association BDEW is reviewing the extensive bill but told CLEW it’s a good thing that a reform had been set in motion: “The provisions contained in the draft bill are essential” to meet climate neutrality targets, it said.
• CCS now allowed – Germany’s parliament approved a law to allow carbon storage under the seabed, enable the buildout of pipelines to transport CO2 and effectively rule out the use of carbon capture and storage (CCS) on coal-fired power plants, but allow it for gas infrastructure. Industry welcomed the move, while environmental groups called for stricter guardrails.
• Citizen initiatives push for change – Two citizen groups succeeded in turning their climate initiatives into regional law. Residents in the port city of Hamburg approved a referendum to bring forward the state’s climate neutrality deadline by five years, to 2040. Meanwhile, the city of Berlin adopted a law proposed by a citizen initiative to plant hundreds of thousands of trees in the capital by 2040.

Caro’s picks – Highlights from upcoming events and top reads

• I can only recommend this longform article by journalist Uchenna Igwe, delving into the threats facing Nigeria’s remaining tropical forest and the choices and realities local communities face. Key quote: “Look at this place, does it look like a place that produces all these resources? You saw the state of our roads on your way here.”
• This immersive Bloomberg article does a fantastic job of explaining what the boom in solar power means for Europe’s grids without becoming too technical.
• I also enjoyed this The Bureau of Investigative Journalism (TBIJ) series examining the major flaws in key COP30 negotiating issues and financing flows inside and outside of the event – do check it out.