Germany’s green energy shift may get a financial shot in the arm when the impact of the coronavirus ebbs, according to a senior member of Chancellor
When the virus’ acute phase is over, the government plans a stimulus package that advances the nation technologically and helps the economy’s move toward climate neutrality, Finance Minister
Such a move would allow Germany, Europe’s biggest emitter of greenhouse gases, to exploit a positive environmental quirk of Covid-19’s affect on the economy: plummeting CO2 emissions, said Patrick Graichen, executive director of the Agora Energiewende think tank in Berlin.
“What counts for the climate is sustainable reduction in emissions, not a one-time drop,” Graichen said by phone. “We need a green growth and investment program fast. For sure, once the crisis is over, emissions will soar again.”
To make an impact, a green stimulus program should be of the order of 100 billion euros ($108 billion), said Graichen.
Europe’s biggest economy may slump by 5% this year, according to the government. That’s an ironic boon to the output of pollution and will allow Germany to over-achieve its goal of cutting carbon emission 40% from 1990 levels by the end of the year, according to Agora.
Germany was set to miss the target after pushing down emissions by about 35% in 2019. Agora estimates that it may reduce emissions by as much as 45% by December.
The drop in CO2 has a negative side. Prices for pollution certificates in the European Union’s emissions trading system have fallen almost a fifth this year as measures to deal with the coronavirus cripple the region’s economies. Emissions in the European market are seen dropping another 15% this year after falling almost 10% last year.
Scholz, the finance minister,
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