Germany has announced its plan to invest 54 billion euros or $60 billion over the next four years to combat climate change.
The government's climate change program is aimed at accelerating the transition of Germany to renewable energy and reducing its carbon emissions. According to the country's coalition government, the $60 billion package will not only involve policies that address the call for urgent action to the climate crisis, it could also help boost the nation's economy.
Speaking at a news conference, Chancellor Angela Merkel admitted that Germany has fallen short of its original goal of reducing carbon emissions by 40% from 1990 levels by 2020 but the country is now aiming to reduce it by 55% by 2030.
Merkel said "We must say with a high degree of probability that the target we set ourselves in 2007 will unfortunately not be met. And that's what's bothering me, that's bothering many others."
The plan involve providing subsidies for replacing oil-fired central heating systems, as well as lowering sales tax on rail tickets to encourage more Germans to travel by train. On the other hand, it will increase taxes on flights and introduce a carbon emissions pricing system that will increase the cost of gas and diesel for drivers.
German finance minister Olaf Scholz added "I think that this is a very powerful package that gives us many opportunities to be able to stop climate change. And because we have set ourselves the goal to keep reviewing where we stand this time, it will easier to hit the targets." No additional borrowing will be involved in the program, which means Germany will be able to continue its policy of balancing its budget.
However, Annalena Baerbock, leader of Germany's opposition Green Party, tweeted "I am deeply disappointed. What the climate needed was fast, forceful, binding. What we got was slow, feeble and non-binding."
Ottmar Edenhofer, director of the Potsdam Institute for Climate Impact Research, criticized the plan saying "With this decision, the German government will not achieve the climate targets it has set itself for 2030."
