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Can Germany overcome speed bumps on road to fight climate change?

Germany was an early pioneer in renewable energy and has massively boosted wind and solar power, so why is it bound to miss its self-imposed climate goals for next year?

Can Germany overcome speed bumps on road to fight climate change?
Angela Merkel during the official launch of the Arkona offshore wind farm in Mecklenburg-Western Pomerania earlier this year. Photo: DPA

The “Energiewende”, or clean energy transition, sometimes described as the biggest national project since reunification three decades ago, has hit a number of speed bumps.

Problems have been linked to Germany's ongoing nuclear phase-out, its reliance on dirty coal, local opposition to new infrastructure, and the powerful, state-coddled auto sector.

These factors have derailed German efforts to bring down emissions by 40 percent from 1990 by next year, though it has pledged to meet the next goal of a 55 percent reduction by 2030.

It's a sweeping project that ranges from encouraging bicycle travel to making home heating more efficient, to the trade in so-called “polluter-pays” emission certificates.

As talks continued within Chancellor Angela Merkel's government on new climate measures, here are key elements in the energy shift – and key problems on the path to a carbon neutral economy by 2050.

READ ALSO: Sparks fly as Germany's climate plan hits rural landscapes

Not in my backyard

Export power Germany – Europe's biggest economy, responsible for two percent of the world's greenhouse emissions — plans to replace nuclear as well as coal, oil and gas power with wind and solar but also biomass, hydro
and geothermal energy.

The goal is to reduce the risk of a nuclear disaster while shifting from finite, dirty and mostly imported fossil fuels and uranium to infinite, clean and locally generated energy.

State incentives have massively boosted wind power, especially on the North and Baltic Sea coasts, where more than 20 off-shore wind farms now have an output equivalent to half a dozen nuclear plants.

READ ALSO: Germany pledges €100 billion in the fight against climate change

A wind farm in Brandenburg. Photo: DPA

Large-scale photovoltaic production is concentrated in the sunnier south, and Germany-wide well over one third of electricity demand is now met with renewables, with plans to raise the share to about two thirds by 2030.

However, Germany has lagged badly behind in building a new type of high-voltage transmission line – dubbed the energy “Autobahn” – several of which are to deliver electricity from the wind-swept north to the more
industrialized south.

Most delays have been due to not-in-my-backyard opposition against the hulking new power lines, meaning construction has slowed to a crawl and that they are now often laid below ground at far greater cost.

Given the fickle nature of weather-based energy, experts warn that smart grids and power networks, and more storage capacity, are essential to flexibly deliver clean energy to where it is needed.

Coal's long farewell

A milestone in Germany's energy revolution came in 2011 when Merkel decided, days after Japan's Fukushima disaster, to phase out nuclear power by 2022.

While many of the reactors have already gone off-line, Germany has increasingly relied on renewables — but also on cheap and abundant lignite and hard coal.

As world coal prices have fallen, along with the cost of emission certificates, Germany has seen its CO2 emissions rise in some years, making coal the new target of green protests and blockade of open-pit mines.

The Merkel government this year announced a coal phase-out by 2038, but faces local opposition from mining regions, especially in the ex-communist east, where the far-right AfD party has capitalized on fears over job losses.

READ ALSO: Six things to know about the upcoming climate strikes in Germany

Powerful auto sector

A major laggard in the climate mega project has been Germany's auto sector dominated by VW, Daimler and BMW, a politically powerful industry that brings huge export profits and employs 800,000 people.

Merkel – who has been dubbed both the “climate chancellor” and the “car chancellor” – has lobbied in Brussels against tougher emissions limits bitterly opposed by the German corporate giants.

While the auto makers have made SUVs and ever-bigger models that have eroded efficiency gains, Germany had to shelve its target of bringing one million electric cars onto the roads by 2020.

VW has since 2015 been caught up in the “dieselgate” emissions cheating scandal and car-makers now face diesel bans in some inner cities, pushing them to announce a major shift toward clean and green mobility.

Despite the changes, Germany has refused to follow the example of Britain and France, which have set cut-off dates to phase out the production of combustion engine vehicles.

READ ALSO: Protests against German car industry draw 25,000

By Frank Zeller

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TRAVEL NEWS

German train strike wave to end following new labour agreement

Germany's Deutsche Bahn rail operator and the GDL train drivers' union have reached a deal in a wage dispute that has caused months of crippling strikes in the country, the union said.

German train strike wave to end following new labour agreement

“The German Train Drivers’ Union (GDL) and Deutsche Bahn have reached a wage agreement,” GDL said in a statement.

Further details will be announced in a press conference on Tuesday, the union said. A spokesman for Deutsche Bahn also confirmed that an agreement had been reached.

Train drivers have walked out six times since November, causing disruption for huge numbers of passengers.

The strikes have often lasted for several days and have also caused disruption to freight traffic, with the most recent walkout in mid-March.

In late January, rail traffic was paralysed for five days on the national network in one of the longest strikes in Deutsche Bahn’s history.

READ ALSO: Why are German train drivers launching more strike action?

Europe’s largest economy has faced industrial action for months as workers and management across multiple sectors wrestle over terms amid high inflation and weak business activity.

The strikes have exacerbated an already gloomy economic picture, with the German economy shrinking 0.3 percent across the whole of last year.

What we know about the new offer so far

Through the new agreement, there will be optional reduction of a work week to 36 hours at the start of 2027, 35.5 hours from 2028 and then 35 hours from 2029. For the last three stages, employees must notify their employer themselves if they wish to take advantage of the reduction steps.

However, they can also opt to work the same or more hours – up to 40 hours per week are possible in under the new “optional model”.

“One thing is clear: if you work more, you get more money,” said Deutsche Bahn spokesperson Martin Seiler. Accordingly, employees will receive 2.7 percent more pay for each additional or unchanged working hour.

According to Deutsche Bahn, other parts of the agreement included a pay increase of 420 per month in two stages, a tax and duty-free inflation adjustment bonus of 2,850 and a term of 26 months.

Growing pressure

Last year’s walkouts cost Deutsche Bahn some 200 million, according to estimates by the operator, which overall recorded a net loss for 2023 of 2.35 billion.

Germany has historically been among the countries in Europe where workers went on strike the least.

But since the end of 2022, the country has seen growing labour unrest, while real wages have fallen by four percent since the start of the war in Ukraine.

German airline Lufthansa is also locked in wage disputes with ground staff and cabin crew.

Several strikes have severely disrupted the group’s business in recent weeks and will weigh on first-quarter results, according to the group’s management.

Airport security staff have also staged several walkouts since January.

Some politicians have called for Germany to put in place rules to restrict critical infrastructure like rail transport from industrial action.

But Chancellor Olaf Scholz has rejected the calls, arguing that “the right to strike is written in the constitution… and that is a democratic right for which unions and workers have fought”.

The strikes have piled growing pressure on the coalition government between Scholz’s Social Democrats, the Greens and the pro-business FDP, which has scored dismally in recent opinion polls.

The far-right AfD has been enjoying a boost in popularity amid the unrest with elections in three key former East German states due to take place later this year.

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