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Germany unveils climate plan to cut emissions and fossil fuels

  • Germany at risk of missing climate targets
  • Iran war highlights risks, costs of reliance on fossil fuels
  • 67-point plan includes wind capacity expansion, support for EVs
  • Environmental groups, climate experts say plans fall short

Germany set out plans on Wednesday to help it meet 2030 climate targets and reduce its dependence on volatile fossil fuel imports, making €8 B ($9.28 B) available to fund measures such as expanding wind power capacity and boosting EV sales.

While the long-awaited 67-point program addresses concerns that Berlin's climate goals are at risk, it comes amid growing fears about soaring energy prices and oil and gas flow disruption due to the Iran war.

GERMANY AT RISK OF MISSING CLIMATE TARGETS. Europe's biggest economy aims to reduce greenhouse gas emissions by at least 65% from 1990 levels by 2030 and to be climate neutral by 2045. So far, however, the reduction is only about 48% and experts say existing policies are insufficient.

The plans, approved by Chancellor Friedrich Merz's cabinet, include a 12-gigawatt (GW) expansion of onshore wind turbine capacity, schemes to boost electric vehicle (EV) sales and steps to help forests and soil.

The result will be savings of more than 25 MM tonnes of CO2 by the end of the decade, said the Environment Ministry, and reductions of nearly 7 Bm3 in natural gas and 4 B liters of petrol use by 2030.

"We are modernizing the economy, making society more resilient to crises, and helping nature so it can help us," said Environment Minister Carsten Schneider.

CRITICS SAY PLANS FALL SHORT. However, the program drew criticism from environmental groups, and the independent Expert Council on Climate Issues said in an initial assessment that "it is highly likely that the measures will not be sufficient to ensure the climate protection targets are met".

To support the transport and housing sectors - consistent laggards - the government said it had devised a socially tiered €3-B subsidy scheme to make EVs more affordable.

This should cover 800,000 electric cars, saving more than 800 MM liters of petrol. Germany's charging infrastructure will also be extended.

After last month ditching the previous government's contentious heating law, Schneider said funding for improving building efficiency and heating replacements would continue.

An extra €2.9 B will also be available to help industry shift to low-carbon technology, such as electrification processes and boosting carbon capture and storage (CCS).

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