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CLIMATE CRISIS

Germany angers EU after putting brakes on fossil fuel car ban

Berlin has upset EU partners by blocking a milestone agreement to ban new sales of fossil fuel cars from 2035, as German domestic politics take the bloc hostage.

Exhaust pipes of a Volkswagen, photographed with the brand skyscraper at the VW plant in Wolfsburg.
Exhaust pipes of a Volkswagen, photographed with the brand skyscraper at the VW plant in Wolfsburg. Photo: picture alliance/dpa | Julian Stratenschulte

The planned ban is key to Brussels’ push to make the bloc climate-neutral by 2050, with net-zero greenhouse gas emissions. Now, the German chancellor’s scramble to keep his coalition together has enraged many in the EU, since the deal had already passed through each stage of the Brussels legislative process — including approval by member states.

The bloc was due to formally nod it into law on Tuesday but, in an unprecedented manoeuvre, Berlin now says it can not give its agreement.

The European Parliament has already voted to formally approve the text of the bill, which will de facto mean that all new cars sold after 2035 will have to have electric motors.

This means the text can no longer be altered, despite Germany now insisting on further assurances from Brussels that synthetic fuels could still be used in engines after 2035.

The fuel Germany wants an exemption for is still under development and produced using low-carbon electricity. Some of the world’s biggest car manufacturers are based in Germany and synthetic fuels would make it possible to extend the use of combustion engines.

Faced with the unexpected roadblock, the European Commission, the EU’s executive arm, said it would “work constructively” with Berlin to get the bill adopted “quickly”.

The commission did not say, however, exactly what commitment it could give, since the text already paves the way for the use of synthetic fuels if they are deemed to help achieve the aim of zero carbon emissions.

German ‘navel-gazing’

French MEP Pascal Canfin, who oversaw the bill’s passage though scrutiny in parliament, slammed Berlin’s “blackmail”.

He warned that if other member states follow suit on issues important for their domestic agenda it could threaten other texts that form part of the EU’s Green Deal, an ambitious push to achieve carbon neutrality by 2050.

READ ALSO: OPINION: The Franco-German ‘couple’ is crucial to the EU but the relationship is in trouble

“The very spirit of European construction is in danger through this incoherent position,” he told AFP.

Separately an EU diplomat, speaking on condition of anonymity, said Germany was exploiting its outsize influence in Brussels. “Only a large EU country can afford to act in such a way,” he said.

Germany is not alone in its concerns. Italy, another major car maker, already said it was opposed, and Poland and Bulgaria had been expected not to vote in favour.

Unlike Germany, however, their opposition was clear from the start, and their opposition was not enough to block the bill’s passage through the Brussels committees.

“Germany is going back on months of negotiations … this is a challenge to the EU’s decision-making process that we rarely see,” said Eric Maurice, of the Robert Schuman Foundation, a European think tank. Maurice said the situation arose from the German government’s “navel-gazing” and the dysfunction on display in the coalition of the Social Democrats, the Greens and the Liberals.

The situation hurts other countries and the EU’s “proper” functioning, he added.

Chancellor bowed to pressure

Behind the block is Germany’s liberal Free Democratic Party (FDP), which is courting votes among the large part of the German population that it suspects opposes the ban on combustion engines.

The FDP wants to assert itself against the Greens by acting as the automobile sector’s defender.

In a bid to keep the coalition together, Chancellor Olaf Scholz bowed to pressure and pushed for the exemption for synthetic fuels.

Environmental groups oppose such fuels and argue they are expensive, require huge amounts of electricity to produce and are polluting since they emit nitrogen oxide, another greenhouse gas.

READ ALSO: How climate change could cost Germany almost one trillion euros by 2050

The automobile industry had largely expected European regulations and invested massively in electric vehicles.

Even if they prove to be helpful in the green transition, synthetic fuels “will not play an important role in the medium-term future of passenger cars”, Markus Duesmann, the boss of Audi, said in the weekly Der Spiegel.

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POLITICS

Has Germany avoided ‘driving bans’ by loosening its climate rules?

Amid threats of a weekend driving ban to hit emissions targets, Germany's governing coalition has reached a last-minute agreement on reforms to climate protection rules. Here's what you need to know.

Has Germany avoided 'driving bans' by loosening its climate rules?

In a car-loving country like Germany, it seemed like an impossible scenario: motorists being forced to leave their cars at home on the weekend and rely on bikes or public transport instead. 

This, however, was exactly the prospect raised by Transport Minister Volker Wissing on Friday. In a letter to leaders of the governing Social Democrats (SDP), the Greens and Free Democrats (FDP), the FDP politician piled more pressure on the government to ease the climate protection rules.

READ ALSO: German minister threatens to introduce weekend ‘driving ban’

If they didn’t do it soon, he said, drastic measures like a driving ban on Saturdays and Sundays would be needed. 

In just a matter of days – and after sending the media into a frenzy – Wissing got what he wanted. On Monday afternoon, the coalition government announced that they had reached an agreement on their climate protection reforms and would put the law to a vote in the coming weeks. 

Once the new rules come in, government ministers like Wissing will be under far less pressure to hit annual climate targets and can instead rely on other sectors to reduce their emissions instead. 

How are the rules being relaxed?

Under the current Climate Protection Act, damaging emissions like CO2 and methane gas in energy-intensive sectors are measured on an annual basis. The sectors that are monitored include energy, housing, transport, industry, waste-disposal and agriculture.

These sectors are all given an annual emissions ‘budget’ with the ultimate aim of cutting Germany’s emissions 65 percent by 2030 compared to 1990 levels. 

If a particular sector, like transport, fails to reduce its emissions in any given year, ministers are legally obliged to introduce what’s known in German as a Sofortprogramm – a package of emergency measures designed to rapidly cut emissions – the following year. They are given three months from the release of the emissions data to do so.   

Under the new law, the government will stick track emissions across different sectors, but the bar for introducing emergency measures will be much higher. That’s because the government will look at the full picture and allow different sectors to ‘pool’ their emissions savings, for example by relying on lower emissions in the housing sector to offset increases in agriculture. 

READ ALSO: Where (and when) is traffic the heaviest in Germany?

At the same time, sectors like transport will only face consequences after failing to hit climate targets for two years in a row, and this package of measures will be decided by the government as a whole rather than by individual ministries.

Why is this happening now? 

On Monday, just a few hours before the traffic-light coalition announced that they had signed off on the climate reforms, the Expert Council for Climate Protection Issues (ERK) released official data on the emissions produced by various sectors in Germany in 2023.

As expected, the transport sector drastically overshot the amount of emissions in its budget, pumping out 146 million tonnes of CO2 and other harmful emissions rather than the permitted 133 million tonnes. 

Aside from housing, which produced one million tonnes more than the allowed 101 million tonnes of emissions, transport was the only sector that missed its climate targets in 2023, and it did so for the third year running. 

Traffic jams on German motorway

Traffic jams build on the motorway between Hamburg and Flensburg. Photo: picture alliance/dpa | Axel Heimken

In total, Germany slashed its emissions by 10 percent last year, with most sectors comfortably within their respective budgets. According to the ERK, 674 million tonnes of climate-damaging emissions were produced in 2023, compared to 750 million tonnes back in 2022.

However, Wissing’s failure to reduce CO2 emissions in the transport sector for yet another year means he is legally obliged to set out his Sofortprogramm within three months. 

This has made the situation much more urgent for the FDP politician.

But if the climate protection reforms come into force before July, the minister will be spared from having to take drastic action to cut emissions within his sector. 

Wissing has repeatedly blocked climate protection measures such as the implementation of a speed limit on the Autobahn and is known, along with much of his party, for being a champion of car owners and a supporter of motorway expansion. 

How will Germany’s climate protection reforms affect me?

While German tabloids such as Bild have responded with relief that the government has averted a driving ban, most serious commentators agree that tough restrictions on motorists were never on the table.

During the oil crisis in the 1970s, Germany briefly introduced a driving ban on Sundays, but it’s highly unlikely that this would ever be repeated in modern times. 

A much more likely explanation is that Wissing wanted to use the threat as leverage to avoid emergency climate measures, while also painting the current climate protection laws as draconian and authoritarian.

That said, it’s true that the Transport Minister seems to have steered clear of having to impose mandatory climate measures, which could have included a short or long-term ‘Tempolimit’ on the Autobahn, or other rules affecting drivers. 

Instead, it seems it’ll be business as usual in the nation of car-lovers, with no clear path for cutting emissions in the transport sector. 

However, there is some good news for eco-friendly homeowners, as the government has coupled its reform of the climate protection law with a new law designed to promote solar energy. 

READ ALSO: How to install a solar panel on your balcony in Germany (even if you rent)

That means it should soon become easier and more affordable to erect solar panels on balconies and roofs, as well as in fields and on farmland.

For flat owners that are part of a homeowners’ association, it should also become easier to use the energy produced from solar panel installations in buildings with multiple apartments. 

What are people saying?

The response to the latest climate reforms has been mixed so far, with members of the government hailing it as a necessary modernisation of the law.

Greens politician Robert Habeck, who as Economics Minister is responsible for energy and climate policy, said the new rules made the Climate Protection Act “more forward-looking, more flexible and therefore more efficient.”

At the same time, climate protection groups responded with dismay at the watering down of emissions targets, with the Environmental Association (BUND) describing the law as a “blow to the climate protection architecture in Germany”.

Transport Minister Volker Wissing

Transport Minister Volker Wissing (FDP) speaks to Defence Minister Boris Pistorius (SPD) at a cabinet meeting in Berlin. Photo: picture alliance/dpa | Michael Kappeler

“Instead of commitment and responsibility, there is now shared irresponsibility,” BUND CEO Olaf Bandt said in a statement. “Crucial teeth have been pulled out of the law. Climate protection is to be put on the back burner with impunity.

“The traffic light government is thus underpinning its unambitious climate policy and postponing necessary climate protection until the next legislative period.”

Last year, BUND and Deutsche Umwelthilfe won a court case at the highest administrative court in Berlin-Brandenberg, with the court ordering the government to take immediate action to reduce climate emissions in the transport and housing sectors. 

READ ALSO: German government loses key climate court case

The environmental protection groups recommended a series of measures, such as the scrapping of climate-damaging subsidies, the end of motorway expansion and the rapid introduction of a speed limit on parts of the Autobahn. 

Their views were echoed by services union Verdi, which represents many transport-sector workers in Germany.

In a statement published ahead of the transport ministers’ conference on Wednesday, the union called for an end to subsidies for wealthy car owners, more investment in the public transport network and a guarantee for the future of the €49 Deutschlandticket

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