The transition to renewable energy is crucial for a sustainable, affordable, and resilient energy supply. Renewable energy sources offer numerous benefits, including domestic value creation, reduced dependence on energy politics, and lower power generation costs. In the context of Germany’s energy and climate policy, the current coalition government, led by Chancellor Friedrich Merz, has made some promising moves, such as the Economic Promotion Act and the Infrastructure of the Future Act. These initiatives aim to promote investments in renewable energy and streamline planning and licensing processes.
However, there are notable shortcomings in the government’s approach. A clear commitment to continuing the expansion of renewables is lacking, and the focus on protecting the status quo is hindering the necessary transformation of the auto industry. The mobility sector, in particular, requires a reliable political framework to facilitate decarbonization. The government’s emphasis on short-term cost reduction measures may also undermine the long-term viability of the energy transition.
In 2026, key topics will include the reform of the Renewable Energy Act (EEG) and the Building Modernisation Act (GMG). The government must provide clarity on the future course of the heating sector’s transition and take swift, long-term action to address the needs of the energy sector. This includes reducing bureaucracy, expanding grid capacity, and promoting digitalization. The emphasis should be on system-friendly investments rather than short-term cost-cutting measures. By prioritizing sustainability and investing in future-oriented structures, Germany can safeguard value creation, jobs, and technological leadership in the renewable energy sector.
The government’s approach to energy and climate policy will have significant implications for Germany’s economic resilience and ability to mitigate the impacts of climate change. A comprehensive and coordinated approach is essential to ensure a successful energy transition. This includes setting clear goals, streamlining regulatory frameworks, and promoting innovation and investment in renewable energy technologies. By taking a proactive and long-term approach, Germany can unlock the full potential of renewable energy and create a sustainable, affordable, and resilient energy supply for the future.