Germany Plans Energy Saving Measures to Tackle Climate Change

The German government has reached broad agreement on a number of energy savings measures as it implements a drive by Chancellor Angela Merkel to battle climate change. Following are some of the highlights:


Some 30 savings and efficiency measures will be discussed at a cabinet retreat meeting on Aug. 23-24.

The full implementation is expected to take up to a year, as many national laws need changing to accommodate new rules.

An overall draft of measures is not available, but Reuters has obtained an internal economy ministry paper listing details.

The bulk of additional savings -- which will help reduce the emission of climate changing carbon dioxide (CO2) from fossil fuel burning -- will have to be made in public and private buildings, in transport and by households.

Industries and energy producers already have far-reaching mandatory energy conservation programmes.

During Germany's presidency of the European Union in first half 2007, Merkel pushed through ambitious and far-reaching goals on climate protection for the bloc and consequently aims to cut national greenhouse gas emissions by a third by 2020.

Her plans are controversial as they undermine consumer spending power and industry warns they could cost jobs.

Environmentalists say the plans are too watered down. They lobby for a speed limit on German motorways.

Germany also aims to increase the share of renewable power in its energy mix to nearly 30 percent from 12 percent now.


BUILDINGS

Buildings contribute 40 percent of CO2 emissions. The government wants those building new houses to save a third in the short term via environmentally friendly heating systems, better insulation and use of renewable energy such as solar panels. Older buildings will have to implement measures such as replacing boilers and windows.

This will affect the public sector, homeowners and tenants as landlords can roll over relevant costs.


TRANSPORT

Transport contributes 20 percent of CO2 emissions.

The government says newly registered cars must become more carbon efficient to attract lower taxes. Up to 2012, they must reduce CO2 emissions to an average 130 grams per kilometre from 164 grams now if the plans go ahead.

Consumer information will become far more precise.

Motorway and road toll fees for heavy vehicles will be adjusted according to individual pollution levels.

Germany wants shipping and air transport to be included in the EU emissions trading system. So far, the scheme applies to power producers and the energy-intensive industry.


INTERNATIONAL COOPERATION

Germany is exploring ways to cooperate with the United States on so-called clean coal technologies which reduce CO2 emissions from heavily polluting coal burning and on climate technology research.


UNRESOLVED ISSUES

Tax advantages for highly polluting company cars will be eliminated only if the environment ministry gets its way.

There are also disagreements over the approach to, and price levels to be set for subsidising highly efficient combined heat and power (CHP) production units, which capture and recycle heat produced during electricity generation.