Political turmoil casts uncertainty on the Energy Transition • Installation of heat pumps falls short on national targets • District heating remains predominately fossil-fuelled • Read more about the developments in sustainable heating and cooling in this month's news update from Germany
Germany’s coalition government, led by Chancellor Olaf Scholz, collapsed in early November 2024 due to unresolved disputes over economic policies. The three-party coalition, consisting of the Social Democratic Party (SPD), the Greens, and the Free Democratic Party (FDP), was unable to reconcile its differing approaches to economic recovery. With the government now in a challenging phase, it faces limited capacity to implement major reforms or address urgent economic challenges, including inflation, growth, and energy policy disputes.
The breakdown of the coalition also has implications for Germany’s energy policies, particularly regarding the country’s energy transition (Energiewende). Disagreements among coalition members over key energy issues has caused tensions over the pace of renewable energy expansion, with the Greens pushing for more ambitious climate goals while the FDP emphasized cost efficiency. The issue of energy subsidies also divided the coalition, as the FDP opposed increased government spending on energy-efficient renovations and support for households struggling with rising energy costs, which the SPD and Greens supported as part of a broader economic stimulus.
While Germany faces concerns about its energy security and climate targets, these areas remain pivotal for the nation’s future. Reflecting its commitments at the EU level, Germany is still in a state of flux, requiring further development, collaboration, and progress to meet ambitious goals and transform key parts of its energy systems. This ongoing transformation is crucial to balancing energy security with sustainable energy sources.
Despite increased spending, Germany’s traffic light coalition remains challenged to significantly advance the heating transition. Federal Economics Minister Robert Habeck (Greens) set an ambitious target of 500,000 new heat pumps per year, aiming for six million by 2030. However, only 200,000 heat pumps will be installed this year. The slow refurbishment rate, especially for public buildings, has left the country lagging behind on its climate goals.
Still, the building sector remain among the most important areas for climate protection. Motivating millions of consumers to abandon old habits, embrace new technologies, and accept potential sacrifices in comfort will be essential for any progress. Contribution to this progress is a key opportunity to foster and accelerate the transition.
Read more in article from Handelsblatt
The majority of district heating in Germany still relies on fossil fuels, with coal and gas being the primary sources. A WWF study from 2024 highlighted that alternatives like large heat pumps, geothermal energy, and waste heat from industrial processes have played a minimal role in Germany’s district heating systems.
The study highlights that district heating in Germany generates 39 million tons of CO2 equivalents annually. By comparison, the entire building sector was responsible for around 102 million tons of CO2 equivalents last year, according to the Federal Environment Agency.
WWF argues that municipalities must urgently transition to more sustainable and emission-free energy sources in district heating networks. Climate Director Viviane Raddatz emphasized the need to eliminate harmful energy sources and ensure that district heating becomes a key pillar of sustainable heat supply. The study also revealed significant regional variations in CO2 emissions, with North Rhine-Westphalia having the highest absolute emissions, and Bremen leading in CO2 emissions per kilowatt hour.
Read more in article from Handelsblatt
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