For the time being, the defining issue in German politics is the second economic stimulus package, agreed upon in principle, and to be passed by the coalition government soon. CDU and SPD have outlined their plans for what it should look like, and from an environmental point of view, it seems likely to disappoint.
It seems likely the emphasis will be on broad-ranging tax-cuts, while government investment will be focused on infrastructure, yet likely to encompass road construction as well as investment in energy savings. The SPD, specifically, suggests using part of a suggested state fund to invest in energy savings in public buildings, as well as a more efficient and environmentally friendly energy grid. Controversially, they also want to encourage consumers to buy more environmentally friendly cars through paying them a bonus for getting rid of their old car, a measure derided by Greenpeace and others as an expensive and environmentally harmful subsidy in disguise to the automotive industry.
The CDU puts a stronger focus than the SPD broad tax cuts, likely to not have a significant positive influence on the environment. Nevertheless, they propose to bring forward a change in car taxation, to make it dependant on a car’s CO² emissions, a measure with a potentially large positive impact on CO² emissions. Furthermore, they also want to invest in energy savings in buildings, yet have not yet specified how they would accomplish this. It’ll be worth watching the upcoming intra-coalition negotiations on the stimulus package to see what happens to these limited environmental measures.
Overall, in trying to stimulate consumption through broad tax cuts, the coming year might disappoint those who had been hoping for a more focused effort on renewable energy, CO² emissions reductions, and job creation in green industries.