Germany unveils CO₂ reduction emergency plans after missed 2021 targets

The German ministries of economy (BMWK) , transport (BMVI) and housing (BMWSB) presented two emergency programmes on 13 July 2022, destined to cut emissions in the transport and construction sectors, after those two sectors missed their CO₂ reduction targets for 2021.

The transport programme plans to expand charging infrastructure for electric vehicles, funding for innovation and the use of more efficient heavy commercial vehicles. It also requires an additional €250m for expanding cycle pathways for 2030 and supporting a digitalisation push meant to promote working from home. The measures could save about 13 MtCO₂eq by 2030 in the transport sector, compensating for the 2021 underperformance.

For the building sector, the emergency programme adjusts the federal funding for efficient buildings (BEG) policy with the aim to ensure that the building stock will be climate-neutral by 2045. Among other things, the new measures would force all newly installed heating systems in Germany to be operated with 65% renewable energy starting 2024. The government also plans renovations to make public and residential buildings more energy efficient. It also provides incentives for switching fossil heating to renewable energy and for new heating networks that produce at least 75% of heat from renewables and waste heat. 

In March 2022, Germany’s Environment Agency revealed that the transport sector's CO₂ emissions were at 148 MtCO₂eq last year, missing its target of 145 MtCO₂eq. The building sector emitted 115 MtCO₂eq in 2021, missing its target of 112 MtCO₂eq. These shortfalls, coupled with a 4.5% rise in GHG emissions in 2021 compared to 2020, threaten Germany’s overall 2030 climate goal of reducing GHG emissions by 65% in 2030 and reach carbon neutrality by 2045.