Christian Lindner, leader of the German Free Democrats (FDP), Olaf Scholz, SPD member and likely next German chancellor, Annalene Baerbock and Robert Habeck, co-leaders of the Greens Party, Christian Lindner, leader of the German Free Democrats (FDP), arrive to present their mutually-agreed on coalition contract on November 24, 2021 in Berlin, Germany.
Michele Tantussi—Getty Images
November 26, 2021 11:44 AM EST

Among environmentalists, hopes have been running high for Germany’s new government. At elections this September, growing concern about climate change, boosted by the worst floods to hit the country in 500 years, helped the German Greens double their parliamentary seats.

Though the Greens’ performance wasn’t enough to win them the chancellorship, it gave them significant clout in coalition negotiations, which they promised to use to push through parts of their radical climate action program.

They have delivered—partly. On Wednesday the party unveiled a three-way coalition agreement with economic liberals the Free Democrats and the center-left Social Democrats, whose leader, Olaf Scholz, will succeed Angela Merkel as chancellor. The deal contains a raft of measures to slash Germany’s greenhouse emissions, which remain high compared to many European neighbours because of its heavily industrial economy and greater reliance on coal.

The measures include a commitment to massively expand renewable energies, turning over 2% of national territory to the cause; a target to phase out coal by 2030, eight years earlier than previously planned; and a plan to weaponize foreign policy to drive shifts on climate abroad.

The Greens won the right to appoint the foreign minister, which will be party co-leader and former chancellor candidate Annalena Baerbock, and the head of a “super ministry” for the economy and climate protection, which will be her co-leader Robert Habeck. They will also get to pick the ministers for agriculture and environmental conservation. “We are in charge of all key energy and climate ministries,” says Sven Giegold, a Green member of the European parliament, who was on the party’s core coalition negotiating team, “and we have a whole roadmap for a post-fossil future based on renewable energy.”

But some climate campaigners said they were frustrated by a lack of clarity on the timeline for Germany’s promised phase-out of fossil fuels. For example, many had hoped the agreement would set an end date for the use of natural gas, a fossil fuel that Germany and other European countries are increasingly using as a “bridge fuel” to reduce reliance on more-polluting coal and oil in the short-term. The European Environmental Bureau, a network of activist groups and NGOs, called the gas commitments “highly disappointing” and “a missed chance for Germany to give clear indications” to energy markets.

Gielgold says the new government is focused on ramping up renewables and their supporting technologies as fast as possible so that they can replace fossil fuels, rather than on the exact dates those fuels will leave the mix in Germany or elsewhere in Europe. “Honestly, it’s not the phasing out, but the phasing in, which will inspire others to act,” he said.

Here are the four key points in the German coalition’s plan on climate, and how they could affect the rest of the world:

Expanding renewable power

The coalition pledged to make the expansion of renewable energies “a central project” of its government. By 2030, the agreement says, 80% of Germany’s power generation will come from renewables—up from around 40% today. Experts say the target is comparable to the U.K.’s goal of reaching net zero on electricity generation by 2035, and the U.S.’ of hitting “100% carbon pollution-free electricity” by 2035.

To achieve it, the government plans to increase Germany’s solar capacity five-fold to 200GW, and off-shore wind more than four-fold to 40GW by 2030, with a mandate to accelerate designation of land for onshore wind power. The agreement also calls for a costly overhaul of Germany’s electricity grid geared towards solar, wind, and hydrogen.

Germany’s renewables push could be decisive for the rest of the E.U., restoring faltering cooperation on offshore wind and pressuring others to ramp up national spending in line with the bloc’s climate goals, according to Lisa Fischer, an energy transition expert at European climate think tank E3. “[The Greens] have sort of gone on the offensive: focusing on getting real ambition on renewables deployment, and perhaps they haven’t used their energy on putting in negative criteria on gas and coal as much,” Fischer says. “And the ambition level there is great. I do think it’s a game changer for Europe.”

Phasing out coal

Germany is the world’s fourth largest consumer of coal and has lagged far behind its western European neighbours on phasing it out, due to its large reserves of lignite coal, which it has historically relied upon to ensure its energy independence. Coal made up more than a quarter of German power production in the first half of 2021

The agreement says Germany will bring forward its coal exit from the 2038 date the previous government had set. “Ideally, this will be achieved by 2030,” it reads. Though some campaigners were frustrated by the lack of a firm commitment, energy experts say the worsening economic case for coal in Europe—due to E.U. regulations and market shifts— makes it likely the 2030 date will be met.

The accelerated timeline on coal will help pile pressure on Eastern and Central European countries who are aiming for later dates. Germany has historically wielded economic and political influence over those countries, but its message on coal has been muddled by its domestic reliance. “A 2030 German coal exit leaves nowhere to hide for Poland, Czechia and Bulgaria,” climate non-profit Ember said in a statement. “Those left behind will face high electricity prices, an uncompetitive economy, and increasing pressure to act.”

Cutting reliance on natural gas

Germany, like much of the rest of Europe, is highly reliant on natural gas for heating, a sector which makes up 12% of the E.U.’s carbon dioxide emissions. Countries face a costly drive to retrofit buildings to use renewable-powered electricity, or other renewable technologies, for heat.

The coalition agreement says that “all newly installed heating systems must be operated with 65% renewable energy by 2025”, but it is unclear how fast buildings will be expected to replace their systems. Meanwhile, an existing plan to build hydrogen-ready gas power plants, combined with the lack of an end date for natural gas use, leaves the door open to gas remaining part of electricity production for years to come.

Campaigners hope the German government will strengthen its gas targets next year, as part of a promised raft of new climate legislation, and as it participates in a long-awaited E.U. review of subsidies and taxes for the fuel.

Putting climate at the center of government

Some of the brightest lights in the coalition agreement come not from policies, but from the way that climate is positioned in the structure of the German government, with Green-leadership of “the traditionally important parts of German decision-making, like agriculture, foreign policy and the economy,” Fischer says.

In an interview with TIME before the September election, Baerbock said that her priority in coalition negotiations would be overhauling the current “totally stupid” situation where “every ministry does what they want and the environment ministry does the environment.” As foreign minister, Baerbock has pledged to align trade and aid with climate goals, and to use Germany’s leadership of the G7 in 2022 to encourage other wealthy countries to accelerate their investment in clean energy infrastructure.

But perhaps the most important ministry remains out of Green control. The Greens lost the battle to appoint the finance minister—one of the fiercest of the coalition negotiations—to the Free Democrats, whose leader Christian Linder will now take the post.

An influential industry lobby group said on Tuesday that the next government would need to spend some 860 billion euros by 2030 to trigger the emissions reductions it is calling for across the economy. It may be hard to extract that much from fiscal hawks the Free Democrats. Giegold, though, says that the consensus-based nature of German politics gives him confidence that the other two parties will stump up the money to meet their commitments. “Normally in Germany, we are dull, gray, and boring,” he says. “And that means we stick to what we have agreed.”

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Write to Ciara Nugent at [email protected].

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