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Germany brings forward the deadline to reach climate neutrality to 2045

The German parliament has passed a bill that amends the country’s Climate Action Law to brings forward the deadline for achieving climate neutrality to 2045 and to tighten the target for greenhouse gas emission (GHG) reduction from 55 to 65% by 2030 compared to 1990. In addition, the country aims to reduce GHG emissions in 2040 by 88% compared to 1990 level. Most of the additional reduction will come from the energy sector and industry. The text also takes into account natural carbon sinks, such as forests and peatlands, and strengthens the role of the Expert Council on Climate Change by extending its responsibilities.

In addition, the German cabined has approved a climate emergency program that includes an additional €8.1bn for climate protection measure over the next five years. The country has allocated €4.5bn for energy-efficient buildings and €650m for the decarbonisation of industry, including to fund Carbon Carbon Contracts for Difference (CCfD).

In April 2021, the Federal Constitutional Court ruled that Germany’s 2019 climate law was partly unconstitutional, as the regulation irreversibly offloads major greenhouse gas (GHG) emissions reduction burdens onto periods after 2030. Consequently, Germany had to update its climate law by the end of 2022 to set up clearer reduction targets for GHG emissions for the period after 2030.

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