1 Climate Policy in Germany A brief overview Manfred Treber, Christoph Bals and Gerold Kier

2 History of German Climate Policy 1987Warning of German Meteorological Society and German Physical Society on the foreseeable dangerous climate change 1990Report of Federal Parliamentary Commission on preventing climate change, demanding a reduction of the CO 2 emissions of Germany by 30 % until % until % until 2050 compared to 1987 levels (unanimously) 1990German government decision to reduce CO 2 emissions of Germany by 25 % until German Kyoto target as part of EU burden sharing: -21 % (until , on the basis of 1990)

3 Overview of German CO 2 Emissions Source: Germany (total) Germany (West) Germany (East)

4 Effective Policies and Measures in Germany Renewable energy act (EEG) Ecological tax reform (in 1999) Energy Saving Ordinance (effective instrument mainly for new buildings) Reform of the (regional) rail transport system  will also have effects on future emissions

5 CO 2 emissions by sector in Germany Service Sector Households Transport Industry Power supply Source: DIW

6 Changes in CO 2 emissions by sector Power supply Industry Transport Households Service Sector Total Emissions Source: DIW => Marked increase in transport sector

7 Weak points of German Climate Policy General >Successes are not sufficient to fulfill the "minus 25% target" for 2005 of the German government >Unclear whether the German "minus 21% target" (until , according to EU burden sharing agreement) can be reached after the weak targets for industry and energy sector in the NAP >Germany is no longer the main driving force in European climate policy (also due to weak NAP) Necessities Need for more investment in energy efficient buildings by private households Freight transport on the road (64% projected increase of road freight traffic until 2015, mainly due to eastward enlargement of EU) Increase in cogeneration (combined heat and power production) disappointing (due to influence of coal lobby)

8 Future Steps of German Climate Policy Emissions trading system starting in 2005 as implementation of a directive of the European Union  will be a major step to regulate emissions from large point sources such as refineries or power plants  This cap-and-trade mechanism restricts nearly half of the overall emissions of the European Union (EU) and is essential to reach the Kyoto target. Recent development: German National Allocation Plan was submitted to EU in due time (31 March 2004) New National Climate Strategy of the German Government expected to be adopted after decision on law on emissions trading Still official position: Germany intends to reduce its absolute emissions by 40% until 2020 if the EU agrees on a 30% target

9 National Allocation Plan (NAP) for the EU emissions trading system First plan covers , second Targets for German sectors were agreed on 30 March 2004: –Industry was granted 15 million tons of additional yearly CO 2 emissions until compared to its own "volontary target" => these 15 M t are an additional burden upon private households and transportation sector, questionable if this target can be reached with current policies

10 Aviation sector... is one of the weakeast points in German climate policy... is the mode of transport with highest impacts on global warming On the international arena there are no limitations of these emissions, and none are in sight Car traffic Air traffic Figure: Past and projected impact of worldwide car and air traffic on global warming (source: OECD)

11 For further information, please visit our website: or contact: Dr. Manfred Treber Germanwatch, Bonn office Kaiserstr Bonn, GERMANY phone +49 (0) Funded by the Federal Ministry for Environment, Nature Protection and Nuclear Safety and the Federal Environmental Agency. The sponsors neither guarantee the correctness and accuracy nor the completeness of the information presented here, nor the compliance with third parties' private rights. The opinions and views expressed here need not necessarily agree with those of the sponsors.