Navigating Climate Policy Challenges in Germany

Germany's climate policy faces significant challenges despite a strong societal consensus on the facts of climate change and support for the Paris climate goals. The ambitious climate fund of 60 billion euros was rejected by the constitutional court, leaving a void in climate initiatives and hindering legislative progress compared to the United States. While Germany's political landscape lacks major opposition to climate change policies, its legislative achievements in climate action have not matched the scale of the US's Inflation Reduction Act (IRA). The disparity partly stems from the size and structure of the economies, as Germany's economy is roughly a quarter the size of America's, making its climate fund notably less impactful. Furthermore, the original vision for Germany's climate policies was intended to parallel the IRA's multifaceted approach over a decade, yet progress remains limited, highlighting a gap between public perception and the realities of implementing the energy transition.