German Chancellor Olaf Scholz answers questions from lawmakers next to German Economy and Climate Minister Robert Habeck and German Finance Minister Christian Lindner during a session of the lower house of parliament Bundestag, in Berlin, Germany, March 29, 2023. REUTERS/Christian Mang
BERLIN (Reuters) - Germany's governing coalition on Tuesday presented the results of 30 hours of negotiations aimed at resolving a dispute that has threatened to hold up major policy initiatives in Europe's largest economy. Here are the main conclusions:
EASING CLIMATE PROTECTION LAW TARGETS
On the insistence of the transport ministry, which is led by the FDP liberal party, industry as a whole will be now measured towards CO2 reduction targets, rather than individual sectors. It will also be measured on a multi-annual rather than annual basis.
This should ease pressure on the transport sector, which has failed to meet its targets in the past two years, as some sectors could now make up for emissions reduction failings in other fields.
PUSH FOR RENEWABLE ENERGY EXPANSION
The parties agreed to give municipalities more leeway for identifying areas suitable for renewable energy expansion. This should make more space available for solar installations and wind turbines, including utilizing along railway lines and highways.
This would help Germany to reach its target of 80% electricity generation from renewables by 2030, a key policy aim for the Greens party.
ACCELERATING ROAD PLANNING, RAILWAY FINANCING
This has been a contentious issue between the two junior coalition partners, the FDP and the Greens. With the new agreement, some highways would be included in quick planning procedures previously only available for railway expansion.
The government will offer 45 billion euros ($49 billion) for investment in rail operator Deutsche Bahn by 2027. The funds will come partly from road tolls on trucks that would be expanded to include smaller trucks and consider CO2 emissions.
E-FUELS AND ELECTRIC VEHICLE CHARGERS
The parties agreed to support a ramp-up of synthetic and climate-neutral fuels by aiming to offer e-fuels at every gas station and expanding research on the topic.
The coalition wants to speed up installation of electric vehicle charging stations by legally obliging gas station operators to offer at least one fast charging point per station within five years.
CLIMATE-FRIENDLY HEATING
The Economy Ministry, led by the Greens, wants to effectively ban almost all new oil and gas heating systems in the country from 2024. This has been resisted by other coalition partners as too costly and a burden on low- and medium-income households and tenants.
The new agreement sticks to the plan that heating systems should run on 65% renewable energy from 2024 but says gas heating would still be allowed if systems can subsequently run on hydrogen.
The parties agreed that switching heating systems should be done under a law that is designed "pragmatically, avoiding unreasonable hardship and taking social aspects into consideration".
($1 = 0.9208 euros)
(Reporting by Riham Alkousaa; Editing by Giles Elgood)
