Factbox-New German climate targets due on Wednesday By Reuters

FRANKFURT (Reuters) – The German cabinet is due to agree on tighter sector targets for carbon emission curbs on Wednesday and probably bring forward an exit date for ending coal generation currently set at 2038.

A draft law, seen by Reuters https://www.reuters.com/business/energy/energy-sector-bear-brunt-stepped-up-german-climate-law-draft-2021-05-06, showed the energy sector was identified as a key CO2 emissions cutter via electrification. It must curb carbon pollution by nearly two thirds.

This is far ahead of only slightly higher targets for industry and a lower target for agriculture in the revised draft vis-à-vis the original.

The moves follow a court ruling last month https://www.reuters.com/business/environment/germany-must-further-tighten-climate-change-law-top-court-rules-2021-04-29 that a 2019 law did not go far enough to ensure climate protection. It may well become a blueprint for stricter environment action by governments elsewhere.

Germany is also seeking to gain an edge in low-carbon technologies.

The draft law will affect this year’s general election campaign when Chancellor Angela Merkel’s conservatives must hone their green profile, with Greens currently leading in the polls.

HIGHER OVERALL EMISSION TARGETS

Germany will now aim for a 65% cut in carbon emissions by 2030 and net zero by 2045, up from a previous 55% for 2030 and net zero by 2050.

Germany’s actual CO2 emissions are currently 40% below the 1990 level and the new targets will mean further reductions in the 2020s. The law stopped short of making detailed recommendations for post-2030.

The most important tool to implement the law will be a levy on carbon pollution charged to suppliers of heating and transport fuels since Jan. 1.

By collecting an initial 25 euros per tonne CO2 equivalent, due to rise to 55 euros a tonne, it enforces emission cuts while raising money for the government to help consumers with rising heat, electricity and travel bills.

The draft law expressly allows a “different pricing structure” in order to drive a departure from old oil and gas heating systems and purchases of battery-powered cars.