Germany on the road to a lowcarbon economy

Germany is making good progress in climate protection, with greenhouse gas reduction currently at 18 per cent, largely meeting the Kyoto target for 20082012. The privatization of East German energy supply and its consequent modernization in the 1990s, the Ecological Tax Reform in 1999 (German Government, 2002a), the Renewable Energy Sources Act in 2000 (German Government, 2000), the Combined Heat and Power Act in 2002 (German Government, 2002b) and the launching of emissions trading in 2005 have been important milestones in German climate policy.

Now, reflecting the urgent need for action, the German government has adopted a comprehensive 29-point future-oriented package of measures on energy and climate policy. Federal funding for climate protection is being increased drastically to 2.6 billion Euros, up by 1.8 billion Euros compared to 2005. Never before has Germany had such an extensive programme for climate and environmental protection. The new package of measures will tackle carbon dioxide in all relevant areas and, thus, integrate climate protection into all sectors of society. The package contains 21 acts and ordinances and 10 support programmes and is calculated to bring down German greenhouse gas emissions by more than 30 per cent compared to 1990.

03 03

tn 13

O 03

1000 900 800 700 600 500 400 300 200 100 0

Decarbonising Germany: -40 per cent carbon dioxide by 2020

89

129

162

154

2005

2020

□ Private households

■ Commerce/trade/service

Source: German Federal Environment Agency, 2007

Figure 2.2 Sector-wide reduction in carbon

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