Germany maps path to ‘net zero’ emissions

BERLIN—The German government adopted an ambitious plan Wednesday to reduce the country’s greenhouse gas emissions to ‘net zero’ by 2045, five years earlier and with deeper cuts than previously planned.

The road map approved by Chancellor Angela Merkel’s Cabinet sets out a number of measures for achieving the new target, including spending more to expand renewable energy sources and tougher financial penalties for polluters.

The measures come with a hefty price tag.

Raising the target for cutting emissions over the next decade from 55 per cent to 65 per cent, compared with 1990 levels, is expected to cost the German economy 12 billion euros ($17.6 billion). But Environment Minister Svenja Schulze said the costs should be viewed as an investment in future growth markets, noting that Germany is a global leader in some sectors of the green economy.

“If we make further progress there, then those will be the jobs of the future,” Schulze said. Her arguments echoed those expressed last month by U.S. President Joe Biden.

Schulze said the new goals are “targets with teeth,” specifying how much each sector of the economy has to contribute.

The new measures including requiring landlords to shoulder half of the emissions-related surcharge on oil or gas used for heating homes, penalizing those who don’t invest in insulating their property.