The shift in German green energy might get a financial injection when the effects of coronavirus recede, according to senior Chancellor members
When the acute phase of the virus ends, the government plans a stimulus package that advances the nation technologically and helps the economy move towards climate neutrality, the Minister of Finance
Such a move would allow Germany, Europe’s largest greenhouse gas emitter, to exploit the positive environmental characteristics of Covid-19’s influence on the economy: a drop in CO2 emissions, said Patrick Graichen, executive director of the Agora Energiewende think tank in Berlin.
“What’s important for climate is sustainable emissions reductions, not one-time reductions,” Graichen said by telephone. “We need a green growth and investment program quickly. To be sure, once the crisis ends, emissions will soar again. “
To make an impact, the green stimulus program must be of the order of 100 billion euros ($ 108 billion), Graichen said.
Europe’s biggest economy may plummet 5% this year, according to the government. That is an ironic gift for pollution results and will enable Germany to achieve more than its goal of cutting carbon emissions by 40% from 1990 levels by the end of this year, according to Agora.
Germany is set to miss its target after reducing emissions by around 35% in 2019. Agora estimates that it can reduce emissions by as much as 45% in December.
CO2 reduction has a negative side. The price of pollution certificates in the EU’s emission trading system has fallen by almost a fifth this year due to measures to deal with the corona virus to cripple the region’s economy. Emissions in European markets are seen to have dropped by another 15% this year after falling by almost 10% last year.
Scholz, minister of finance,
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