emissions will only fall in 2025 due to a decline in production

08.01.2026

Source: E & M powernews

According to Agora Energiewende, Germany emitted fewer greenhouse gases in 2025, but missed EU targets for transport and buildings. The think tank and associations are calling for reforms.

Germany's greenhouse gas emissions fell only slightly in 2025. According to calculations by Agora Energiewende, Germany emitted around 640 million tons of CO2 last year. This corresponds to a decrease of 9 million tons or 1.5 percent compared to 2024. The reduction was therefore less than half that of the previous year. Nevertheless, Germany met the national annual emissions target of 662 million tons set out in the Climate Protection Act.

The reduction in emissions was primarily due to the continued weakness of energy-intensive industry and a high level of electricity generation from renewable energies, particularly photovoltaics. Due to weather conditions, however, the energy industry achieved lower savings than in previous years. Greenhouse gas emissions in industry fell by around 11 million tons of CO2 or 7.2 percent. According to Agora Energiewende, this was due to a decline in production as a result of weak demand and difficult global market conditions.

Buildings and transport increase emissions

The think tank for energy and climate policy criticizes the slow progress in the transition to renewable energies in the buildings and transport sectors. This is preventing the reduction in emissions that would be necessary to achieve Germany's climate protection targets. "Although emissions overall were around 49 percent below the 1990 level, climate protection lost momentum compared to previous years," Julia Bläsius, Director Germany at Agora Energiewende, told journalists.

According to the think tank, sales of heat pumps and electric cars in particular developed positively, increasing slightly again in 2025. Nevertheless, emissions in the buildings and transport sectors increased. According to Agora, the German government should take advantage of the upward trend and boost domestic demand for climate-friendly technologies in order to promote industry and climate protection at the same time.

In buildings, the consumption of oil and natural gas for heating increased due to a cold start to the year. This increased emissions by around 3 million tons of CO2 or 3.2 percent. In the transport sector, higher fuel consumption and the continued slow ramp-up of electromobility led to an increase of around 2 million tons of CO2 or 1.4 percent.

According to Agora Energiewende, Germany once again missed the European climate protection targets for buildings and transport under the Effort Sharing Regulation by around 30 million tons of CO2. Additional certificate purchases of up to 34 billion euros could be necessary by 2030.

"The electricity sector cannot permanently compensate for the deficits in the transition to climate technologies in transport and buildings," explained Bläsius. Agora Energiewende sees several key areas of action for 2026.

These include an investment agenda for electrification, an amendment to the Renewable Energy Sources Act (EEG) with reliable grid access for wind and solar plants and a reform of the Building Energy Act (GEG). New heating systems should continue to be predominantly powered by renewable energies. The think tank is also calling for a reliable CO2 price path in European emissions trading and incentives for the expansion of distribution grids.

Associations call for rapid change of course

The balance sheet was also criticized by environmental associations. The Federal Managing Director of Deutsche Umwelthilfe (DUH), Jürgen Resch, explained that the figures demonstrate a political failure, as effective measures have been lacking for years. The World Wide Fund For Nature (WWF) Germany also called for more consistent action and referred to the importance of an effective climate protection program, which the federal government is required by law to present by March. "None of this will work without the financial means. When decisions are made about budgets, sustainability must be the benchmark," demanded WWF Climate Director Viviane Raddatz.

According to Agora Energiewende, the pressure to act remains high. In order to achieve the climate protection target for 2030, Germany would have to save an average of around 36 million tons of CO2 per year from 2026 - around four times as much as in 2025. The recently published study "The energy transition in Germany: state of play 2025" provides an initial qualified estimate and is intended to serve as a basis for further political decisions.

The complete Agora study "State of the Energy Transition 2025" is available for download as a PDF.

Author: Susanne Harmsen