Amendment to Climate Law: Bundestag Approved


A new revised climate action law was passed by the lower house of Parliament in Germany, calling for an overall reduction in greenhouse gas (GHG) emissions.

The law indicates that the government will only step in with action measures if the overall trend for two consecutive years indicates missing 2030’s reduction targets.

Additionally, the law mandates the government to produce yearly reports on climate action. Every two years, the report must include an assessment of carbon pricing within the EU, an analysis of technical advancements and international trends, and how they align with local carbon pricing and climate targets. The report will also assess the necessity of sector-specific targets beyond 2031, taking into consideration the anticipated effects of the EU emissions trading system (ETS).

The new legislation also requires the government to produce a report by June of the current year addressing the transition from current domestic carbon pricing scheme for heating and transport to the new EU ETS launching in 2027.

With the new law, the government is expected to take action to prevent purchasing emissions allowances to meet its obligations under the EU effort sharing regulation (ESR).