Cabinet report accepts missed target

11.08.2025

Source: E & M powernews

The German government has adopted the Climate Action Report 2025. It shows falling emissions, but deficits in transport and buildings. Effective measures up to 2045 are lacking, according to critics.

On August 6, the Federal Cabinet approved the Climate Action Report 2025 and submitted it to the German Bundestag. The annual report in accordance with Section 10 of the Federal Climate Protection Act documents the development of greenhouse gas emissions in Germany, ongoing climate protection measures and the status of previous programs. According to the report, emissions fell again in 2024. With the existing measures, Germany could just about reach its climate target for 2030, but not for the following years.

Federal Environment Minister Carsten Schneider (SPD) emphasized that Germany is on the right track in climate protection, but called for more decisive action, especially in the transport and building sectors. Climate protection is not only an obligation, but also a driver for innovation and economic renewal. The German government intends to present a comprehensive climate protection program before the end of this year.

Building and transport sector still above the limit

In 2024, total greenhouse gas emissions fell by 3.4 percent to 649 million tons of CO2 equivalents. The energy sector recorded the sharpest decline and remained well below its targets. In contrast, the transport and buildings sectors once again fell short of their annual emission levels, which has consequences for compliance with EU obligations under the Effort Sharing Regulation (ESR). Germany could be forced to buy emissions allowances from other countries, the price and availability of which are uncertain.

According to the 2025 projection data, the target of reducing emissions by at least 65% by 2030 compared to 1990 is achievable. However, the long-term target of greenhouse gas neutrality by 2045 would not be achieved without additional measures. In its May report, the Expert Council on Climate Change therefore called for further steps to be taken, particularly in the transport and buildings sectors.
Innovation through climate protection

According to the report, climate protection measures provide economic impetus in all sectors: the energy sector benefits from the expansion of renewable energies, new storage technologies and the digitalization of grids. In the building sector, markets for climate-friendly heating systems such as heat pumps and geothermal energy are emerging. In industry, hydrogen technologies and electrification are driving sustainable production processes. In the transport sector, the expansion of electromobility is leading to changes in infrastructure, technology and logistics.

Controversy over 65% rule for new heating systems

The final version of the report lacks wording that describes the Building Energy Act (GEG) and its 65% target for renewable energies in heating as a "central instrument" for the heating transition. The Deputy CEO of Thermondo, Richard Lucht, interprets this on Linked in as an indication that the rule could be abolished. German Chancellor Friedrich Merz (CDU) rejected the requirement during the election campaign and is in favor of pure CO2 pricing. Critics from politics and environmental associations warn that this could increase the proportion of gas heating and jeopardize climate protection targets.

If the targets continue to be missed, Germany would have to purchase certificates amounting to 224 million tons of CO2 equivalent, according to the report. At the current price of around 70 euros per tonne, this would correspond to around 12.3 billion euros. Such a purchase could increase the price of emission certificates across Europe and place a burden on low-income households.

Criticism of climate protection policy

Hans-Martin Henning, Chairman of the Expert Council for Climate Issues, attributes compliance with the annual emission levels by 2030 to a buffer from the crisis years 2021 to 2024. Without this buffer, overruns would be likely. Deputy Director Brigitte Knopf also criticizes the fact that the current coalition agreement makes no additional contribution to achieving the target.

Environmental Action Germany accuses the German government of failing to take the necessary immediate measures. Managing Director Jürgen Resch particularly criticizes the high exceedances in the transport and building sectors as well as the development in the agricultural and forestry sectors, which release considerable amounts of CO2 instead of binding it. Instead, he calls for a speed limit, the reduction of climate-damaging subsidies and investment in moorland and forest protection.

Author: Susanne Harmsen