Germany’s Climate Action Law: Sectoral Emission Reductions and Progress Towards Carbon Neutrality
Germany’s ambitious climate action law sets annual emissions budgets for each sector until 2030, aiming to achieve significant reductions in greenhouse gas emissions. As of 2023, all sectors have made progress in reducing emissions compared to 1990 levels, although the volumes of reduction vary widely across different industries.
The energy industry, responsible for the largest share of the country’s greenhouse gas emissions at 30.5 percent in 2023, has seen a substantial decrease of about 57 percent since 1990. This significant reduction can be attributed to the decommissioning of emission-intensive lignite-fired power plants in the 1990s, which were replaced by more efficient power plants. In recent years, the transition from coal-fired power generation to renewable energies has further contributed to lowering emissions in the energy sector.
Heavy industry, the second largest emitter in Germany, accounts for 23 percent of emissions and has achieved a 44 percent reduction since 1990. This reduction is primarily due to improvements in production processes and increased energy efficiency. The rising price of carbon allowances since 2019 has incentivized further efficiency efforts, leading to a decrease in CO2 output. Additionally, the recent energy crisis with high fuel prices has also played a role in reducing emissions in the industrial sector.
The building sector has achieved the third largest emission reductions at 51.3 percent since 1990, accounting for 15.2 percent of total emissions in 2023. However, emissions from buildings have stagnated since 2011, posing a challenge to Germany’s goal of achieving a “nearly” climate-neutral building stock by mid-century.
Transport, responsible for 21.6 percent of total emissions in 2023, has faced difficulties in reducing emissions, with levels remaining largely unchanged until the COVID-19 pandemic in 2020. Despite advancements in vehicle technology, the increase in road traffic with larger and heavier vehicles has offset emission reductions. Accelerated measures are needed in the transport sector to align with Germany’s target of carbon neutrality by 2045.
Agricultural emissions, excluding Land Use, Land-Use Change, and Forestry (LULUCF), have decreased by 27.5 percent since 1990, accounting for about nine percent of total emissions in 2023. Reductions in livestock numbers following German reunification have contributed to this decrease in emissions from agriculture.
Waste and other miscellaneous sectors, responsible for less than one percent of total emissions, have achieved an impressive 87 percent reduction since 1990. Through reorganization and improved waste sorting practices, these sectors have successfully avoided harmful emissions.
In conclusion, Germany’s climate action law has spurred significant progress in reducing emissions across various sectors. While some industries have made substantial strides towards carbon neutrality, others face challenges that require urgent action to meet the country’s ambitious climate goals. Continued efforts and investments in sustainable practices will be crucial for Germany to achieve its target of becoming carbon neutral by 2045.