CO2 is released through the burning of fossil fuels such as gas, coal, and oil. The reduction in carbon gas emissions is partly due to increased use of solar and wind energy in Germany. Germany now obtains more than half of its required electricity from solar and wind energy.

In 2022, Germany resorted to coal following the Russian invasion of Ukraine, when Moscow cut off gas supplies. Since then, Germany has significantly reduced its use of fossil fuels. Demand for energy also fell last year as a result of the energy crisis, leading to less coal being burned at German coal power plants.

The decrease is also due to the fact that Germany imports more electricity from other countries, including nuclear energy. Agora Energiewende assumes that only 15 percent of the decrease is a result of climate measures.

If the German economy recovers, CO2 emissions will logically increase again due to higher energy use, but German economists are pessimistic about this. New economic quarterly figures expected this week will reveal whether the German economy has indeed entered a recession.

According to economists from Deutsche Bank, the quarterly figures are negative for the fifth consecutive time. This does not apply to German agriculture, which last year again saw higher incomes, especially in dairy.

The faltering German economy also has major consequences for the multi-year budget of the center-left coalition of SPD, FDP, and the Greens. In recent months, they have had to drastically reduce their planned investments and budgets for the energy transition and climate and environmental measures, much to the displeasure of the Greens’ and Liberals’ grassroots supporters. Upon returning from the Christmas recess on January 15, the Bundestag must approve the revised multi-year forecast.

The announced road blockades by German truck drivers and farmers (this week) and looming strikes by train drivers (next week) have already led to the use of the word 'government crisis' several times in Berlin in recent months. However, just last week, the FDP party congress (by a narrow majority) decided not to leave the red-yellow-green coalition.

Ukraine in EU Affairs and Trade Developments

Stuttering German Economy on the Brink of Recession

German agriculture becomes slightly smaller again

Stuttering German Economy on the Brink of Recession

German agriculture becomes slightly smaller again