German Energy Plan Faces Reality Check

A government plan to make Germany a global leader in fighting climate change must win the support of a reluctant finance minister to succeed.

Finance Minister Peer Steinbrueck’s drive to shore up Germany’s stretched public finances could be a stumbling block.
Steinbruck wants to spend more money on climate change only if tax revenues continue to surge and if extra money can be made from auctioning carbon emissions rights which polluters are forced to hold to cover their operations.

“In no case does he want to question the consolidation of his budget (by spending more on the climate),” Environment Minister Sigmar Gabriel said over the weekend.

The climate package requires hikes in the government’s annual climate protection budget to 2.6 billion euros (US$3.53 billion) compared with 800 million in 2005.

But the bulk of energy savings and outlays for more efficient technology will have to come from public and private buildings, households and transport. Laws stipulating targets, and financial incentives will aim to achieve this.

There are many examples of how this is already working.

Planet Ark