Germany legislates to cut greenhouse gas emissions by 40%

GERMANY: The German government has approved far-reaching laws which, by 2020, aim to cut greenhouse gas emissions by almost …

GERMANY:The German government has approved far-reaching laws which, by 2020, aim to cut greenhouse gas emissions by almost 40 per cent from 1990 levels.

Environmental groups have welcomed the proposals, which also aim to double renewable energy production and improve building insulation, but said they side-stepped tricky issues like luxury car emissions and nuclear energy.

"With this package we are making Germany fit for the future," said federal environment minister Sigmar Gabriel, ahead of his departure for the UN climate change conference in Bali. "Worldwide, this is the only concrete paper for environmental protection that puts scientific knowledge into practice."

Germany is the sixth-largest emitter of carbon dioxide (CO2), the main contributor to global warming. It has reduced its greenhouse gas emissions by 18 per cent since 1990, though reductions have slowed recently. The timing of these proposals shows Berlin is anxious to be seen as a leader on climate protection.

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The package, to be agreed in full by next May, include changes to car tax to reflect CO2 emissions rather than the "engine capacity".

Subsidies of up to €500 million will be made available for owners of older buildings to install environmentally friendly heating and insulation systems.

But the Green Party said the proposals fell short by making many proposals voluntary.

"It would have been better for this to be pushed through with laws obliging landlords to modernise buildings," said Reinhold Bütikofer, Green Party leader. "You can't just tempt people, you have to pressure them." Environment organisation BUND, said the moves were well intentioned but only a beginning.

"Chancellor Merkel and her ministers are avoiding conflict with industry," said BUND chairman Hubert Weiger. "If this remains the case, the 2020 goals will be missed and Germany will stand there as a climate liar."

BUND is calling for the government to bring in a motorway speed limit, abolish tax breaks for company cars and block 24 new coal-powered energy plants.

The government says the plants are needed to meet energy demands if the country phases out nuclear power, and will use CO2-capturing technology. A spokesman said the cost of the new measures would be about €31 billion, but that total energy savings by 2020 would amount to €36 billion.