At first glance, the year 2023 holds positive news: emissions are falling surprisingly sharply and renewable energies are generating more electricity than ever before.
But our analysis shows: The reduction in emissions is largely not a climate policy success.
It is true that the expansion of renewable energies is making better progress. However, the main reason for the reduction in emissions is lower industrial production as a result of the fossil fuel crisis combined with an improved situation on the European electricity market. The problem sectors of buildings and transport are still not delivering any significant reductions in emissions.
With the European emissions trading system strengthened in 2023, it is clear that only a climate-neutral industry can survive in Europe in the long term; fossil technologies will also become more expensive in buildings and transport from 2027. An effective energy and climate policy is therefore more important than ever to secure the industrial location and affordable energy.
Following the Karlsruhe budget ruling, the German government now faces the task of reorganizing its climate and energy policy in 2024 and ensuring it is financially sustainable. Only then will Germany be able to reduce its emissions permanently and promote prosperity.
