Delayed Coal Exit and CO2 Storage: Union and SPD Lack New Climate Initiatives

In recent discussions surrounding climate policy, the significance of climate protection appears to have taken a backseat, as indicated in the coalition papers between the Union and SPD. The opposition has expressed frustration over this development.

The preliminary proposal from the Union and SPD treated climate protection as a minor detail in the economic chapter, leading to discontent among the Greens, who subsequently negotiated a substantial allocation of EUR100 billion for climate and transformation funds as part of the constitutional amendments.

Recent negotiations have yielded a more comprehensive document from the CDU/CSU and SPD's climate and energy working group. The document emphasizes a commitment to Germany's and Europe's climate goals. However, significant disagreements remain between the conservative and social democratic factions.

While the SPD advocates for a 90% reduction in CO2 emissions by 2040 compared to 1990 levels, the Union proposes an alternative approach. They suggest relying on emissions reductions in "partner markets" to compensate for any remaining emissions in Germany after utilizing negative emissions technologies. Essentially, if Germany struggles to effectively reduce its CO2 emissions, other countries would need to step in to assist.

Regarding the coal phase-out, the Union and SPD have adopted a less ambitious stance, reverting to the previous goal set by the last grand coalition, aiming for a coal exit by 2038 instead of the initially desired deadline of 2030. The timeline for shutting down further coal-fired power plants will depend on the pace at which controllable gas power plants can be constructed.

Disagreement persists over the allocation of land for wind energy expansion. The SPD intends to maintain the previous resolution to reserve two percent of the land area for wind farms, fearing that any deviation from this could jeopardize progress in renewable energy expansion. Conversely, the Union seeks to relax this requirement, proposing that it could be adjusted if an "eco-power target" is met.

In other areas, there appears to be unexpected consensus between the Union and SPD, particularly in the energy sector. They plan to immediately reduce the electricity tax for businesses and consumers to the European minimum, with a further reduction of at least five cents per kilowatt-hour anticipated. Achieving this would require halving network charges alongside the electricity tax reduction.

Both parties are also aligned on the future approach to CO2 storage, intending to pursue both carbon capture and utilization (CCU) and carbon capture and storage (CCS). They plan to promptly propose a legislative framework to facilitate the establishment of these technologies in Germany, affirming a strong public interest in the construction of CCS/CCU facilities and pipelines.

However, the Union continues to push for domestic gas exploration, which contrasts with the SPD's position. Additionally, the Union maintains a desire for a more extensive discussion on nuclear energy, arguing that it could play a vital role in meeting climate targets while ensuring energy security. They advocate for halting the decommissioning of nuclear power plants.

On the heating transition front, the Union and SPD's views diverge. The Union aims to abolish the Building Energy Act (GEG), while the SPD supports a revision that would make the heating law more technology-neutral, flexible, and straightforward. The Union is advocating for new legislation that focuses more on reducing CO2 emissions rather than merely promoting energy savings through renovations.

Criticism of the negotiations has been vocal, particularly from Green Party representatives, who argue that the current discussions demonstrate a lack of urgency to combat the ongoing climate and biodiversity crises. They suggest that the coalition appears more focused on maintaining lower living costs for citizens than on implementing effective climate measures.

Similarly, climate policy spokespersons from the Left Party have criticized the emerging coalition, accusing the SPD and Union of regressing on climate issues and prioritizing the interests of the wealthy and corporations over genuine environmental progress.