All eyes were on Washington, D.C. yesterday. From a climate perspective at least, the day was reminiscent of “Groundhog Day,” because for the USA it brought another withdrawal from the Paris Agreement – and global attention, the elixir of life for the avowed climate denier, enemy of renewables and demolition contractor of US democracy, Donald Trump. We can’t escape it either. Today, we’ll look at the details and background, and shed light on what the announced withdrawal of the USA from global responsibility means – for the USA, but also for global climate policy.
In Germany, the problems are one size smaller but still crucial: On the occasion of the Green Week, we write about the competition for good soil between farmers, nature conservation and climate action – and show ways in which these demands can be reconciled. And because everyone here is eagerly awaiting the Bundestag elections, we continue with our fact check on energy and climate policy. Today we have the hot topic of recent years for you: The use of heat pumps and the idea of heating with supposedly “green oil.” We analyze how realistic the proposal is.
Don’t forget: Global emissions must fall rapidly by 2030 if global warming is not to get completely out of hand. Despite the headwinds in Washington and Berlin, the climate issue needs as much attention as possible over the next four years.
US President Donald Trump is once again directing the USA towards largely turning its back on national and international climate action. Immediately after his inauguration as the 47th POTUS on Monday afternoon local time in Washington, D.C., the White House declared, among many other “first” priorities, “President Trump will withdraw from the Paris Climate Agreement.” This means that the USA is once again changing from a country that is seriously striving for climate action and a climate-neutral restructuring of the economy to a state that favors fossil fuels and industries.
This new US position weakens the climate protection camp internationally and strengthens the front of petro-states such as Russia, Venezuela, Saudi Arabia, and other oil and gas producers. According to the White House, Trump wants to put an end to the “climate extremism” of his predecessor and
The announcement was widely expected. It means that the USA will no longer be part of the agreement one year after the official announcement of its withdrawal from the agreement at the UN Climate Change Secretariat – which has not yet taken place. At the next COP30 in Belém, Brazil, however, it will still be a full member of the conference.
The head of UN Climate Change, Simon Stiell, told Table.Briefings: “The global clean energy boom, which was worth two trillion dollars last year alone and is rising fast, is the economic growth deal of the decade.” Those who participate in it can expect “massive profits, millions of industrial jobs, and clean air.” Those who ignore it are “sending these vast riches to economic competitors, while climate disasters such as droughts, wildfires, and superstorms only get worse”. For the USA, says Stiell, “the door to the Paris Agreement remains open.”
It is unclear what the announcement means for US climate and energy policy in concrete terms. Many Democrat-governed US states and cities want to stick to their climate plans, as does a large part of the industry. Whether there will be new gas and oil drilling is just as unclear as the fate of the multi-billion investment program IRA, which benefits many rural areas. Just like the climate plans of the Obama and Biden administrations, Trump’s U-turn in many areas will be challenged and delayed by court cases. Government agencies such as the Environmental Protection Agency (EPA) are also said to be prepared to slow down the reversal of their work.
There was no talk of the USA withdrawing from the UN Framework Convention on Climate Change, which the Trump camp had also considered, on the first day in office. Such a withdrawal would have far greater consequences, and would also release the USA from all financial obligations, but would potentially be difficult to implement legally. It is unclear among legal experts in the USA whether a majority in the US Congress would be required for this.
In the US, Trump’s departure from climate policy is meeting a prepared counter-front. An alliance of 5,000 stakeholders from companies, states, cities, universities, and institutions wants to continue to drive forward US climate action with the “America is all in” alliance, as it did during Trump’s first term in office. States such as California want to maintain their progressive laws on CO2 standards for cars, for example, and a large proportion of the funds from the IRA infrastructure program have already been spent and three-quarters of them have been planned in Republican-governed states. Even without help from the US federal government, the USA can achieve a 48 percent reduction in emissions by 2035. However, this is a far cry from the 61 to 66 percent reduction that the Biden administration’s NDC had just announced.
By withdrawing from the agreement, the Trump administration is putting its country in the same league as Iran, Libya, and Yemen, which are also not part of the Paris Agreement. Unlike the USA, even North Korea is now one of the 194 countries and the EU that have committed to climate plans, emissions reductions, and financial solidarity as parties to the agreement. At the COP29 in Baku, even Russia, as one of the brakemen in the process, had advised the USA to remain in the agreement. And the CEO of the oil company Exxon also campaigned for the USA to remain in the Paris Agreement.
The USA’s departure from “Paris” is also exacerbating the UN Climate Change Secretariat’s financial problems. To date, the USA has accounted for around a quarter of the UN Climate Change budget – around USD 20 million a year. The UN statistics show that the Biden administration quickly paid off the US’s historic arrears before the end of its term of office. In any case, the Climate Change Secretariat is suffering from being assigned more and more tasks by the UN states, but not a correspondingly higher budget. In the draft budget for 2026/27, which will be debated this summer, either the other states would have to compensate for the USA’s share – or the work of the UN agency would be reduced. Even if private donors were to step in, they would not be able to contribute to UN Climate Change’s 74 million “core budget.”
It may even be more rational for a US government that wants to slow down the climate process to remain in the agreement and disrupt it “from within” – as Saudi Arabia or Russia, for example, have been doing for decades, sometimes very effectively. After the withdrawal, the USA will lose its right to vote in the UN negotiations under the Paris Agreement in a year’s time – i.e. on all important issues at a COP. According to the UN, the country will then be given “observer” status – it can then comment on certain issues like other observers (environmental groups, representatives of civil society), but will no longer have an official say in setting the agenda. US representatives are also no longer allowed to succeed US representatives on international climate committees, such as the Green Climate Fund or the Loss and Damage Fund, once their term of office has ended. Overall, the USA’s influence on international climate policy is dwindling – and the relative weight of its rival China is increasing, according to many experts.
However, the Trump administration is hardly pursuing a rational policy on this issue. While the accusation that the Paris Agreement puts the USA at a disadvantage is hardly tenable, the propagated “energy dominance” through increased oil and gas drilling is just as questionable. The USA is already the world’s largest oil and gas producer and global demand is stagnating rather than increasing. The US energy industry is threatening to create expensive fossil fuel overcapacity: An oil auction round in Alaska last year yielded no bids. Demand for gas in Europe will fall in the medium term. The new LNG terminals planned to date on the south coast of the USA will already double export capacities in the next few years. Biden’s ban on the construction of new LNG terminals in the USA, which Trump now wants to lift, could, like his ban on new drilling on public land, protect the industry from expensive bad investments.
The USA is the only country so far to have joined the Paris Agreement twice and withdrawn twice. Similar to the Kyoto Protocol, the historically biggest polluter is thus leaving a treaty that it itself helped to shape through diplomatic lobbying and strongly influenced in its favor. Many of the rules on transparency, as well as the exclusion of liability for climate damage, are the result of pressure from the USA. Many emerging and developing countries criticize the dominance of the USA in these negotiations – exactly contrary to the view of Trump and the US Republicans that the Paris Agreement is “unfair to the USA” and favors China.
Both the CDU/CSU and the FDP want to reverse the most recent amendment to the Building Energy Act (also known to the public as the “Heating Act”). They criticize the fact that it focuses primarily on heat pumps and district heating and discriminates against other types of heating.
Instead of defining exactly which new heating systems may be installed in the future, the decarbonization of the building sector is to take place primarily via the CO2 price, which will gradually make heating with fossil fuels more expensive. Even oil heating systems, which should only be permitted in exceptional cases from 2026 under the grand coalition’s old Heating Act, should have a future if the CDU/CSU have their way: They could become climate-friendly via a quota for “green heating oil,” according to the CDU/CSU’s joint election manifesto. Jens Spahn, a member of the CDU/CSU parliamentary group, recently promoted this demand at the Heat Pump Forum, much to the annoyance of the heat pump industry.
In fact, the Heating Act would not even have to be amended to implement the Union’s demand, because at least in theory, the installation of new oil heating systems is also possible under the current rules. “The compliance options provided for by the current act also provide for solutions for heating oil customers,” says Ernst-Moritz Bellingen, Head of the Heating Market at En2X, the former mineral oil association that is now called the Fuels and Energy trade association. This is possible by combining an oil heating system with a heat pump or by “using a fuel with a corresponding renewable share” – in other words, what the Union calls “green oil.”
However, it is questionable whether this will happen in practice under the current law: When the law comes into full force after the completion of municipal heating planning from mid-2026 (in large cities) or mid-2028 (in smaller towns), new oil and gas heating systems will have to be at least 65% climate-neutral after a transitional period of five years. And climate-friendly heating oil, which would meet this requirement, is currently hardly available and significantly more expensive than fossil fuels. It is therefore also conceivable that the Union could set a lower quota than the one previously envisaged or set longer deadlines.
The impact of an amendment to the act and the introduction of a quota for “green heating oil” would depend heavily on how high this would be and what exactly the Union understands by this. This is because there are various products that can replace fossil heating oil and have very different properties:
No matter which technology is used: Climate-friendly fuels are likely to be more expensive for customers than fossil heating oil in any case. More importantly, however, they would be of little benefit to the climate, at least for the foreseeable future. The reason for this is their limited availability: Both biodiesel from energy crops and HVO from old cooking oils and fat waste require raw materials that are not available in unlimited quantities.
And even if an expansion were to succeed – for example through an even greater use of waste materials and the increased cultivation of energy crops – there is likely to be strong competition. This is because the transport sector is also currently relying primarily on HVO and, in the future, PtL fuels for decarbonization. This not only applies to road transport, where HVO is to be used to achieve the GHG quota. In aviation, the EU stipulates that six percent of kerosene must be produced sustainably by 2030; the majority of this is to be covered by HVO, which will greatly increase the demand for this scarce commodity. Last year, the Bundestag’s scientific services warned that the available quantity “will not be sufficient in the long term to comprehensively decarbonize the transport sector.”
Electricity-based PtL fuels, on the other hand, can theoretically be produced in larger quantities. However, according to the aviation association BDL, they are not an alternative to meeting the EU quotas, at least not in the foreseeable future: Their availability is “effectively non-existent,” the association writes. And: “A timely market ramp-up is also not foreseeable at present.”
Because the total quantity of climate-friendly fuels is limited, the UBA believes that it only makes sense to use them where there is currently no alternative – such as in air and sea transport. Burning them in oil heating systems, on the other hand, does nothing for the climate. “Everything that is used for heating would be missing in the transport sector,” says efficiency expert Schubert.
This would not only be a problem for Germany’s climate footprint but also for the national budget. Even though the sector targets in the German Climate Protection Act are no longer binding since the recent amendment, the EU continues to set its member states specific climate targets for the individual sectors. Germany has recently failed to meet these targets in both the building and transport sectors. If this remains the case, the German government will either have to pay fines or buy emission allowances from other member states that exceed their targets. This would be “a budget risk worth billions,” warns Agora Director Müller.
Reversing the amendment to the Building Energy Act is likely to be difficult to implement in reality. Of the CDU/CSU’s potential coalition partners, only the FDP shares this demand. But even if the FDP were to re-enter the Bundestag, all the polls suggest that the CDU/CSU and FDP would not have a majority. And the SPD or the Greens, with whom the CDU/CSU could achieve a government majority, want to stick to the amended GEG in principle – also because there is hardly any other way of achieving the climate targets in the building sector, at least to some extent.
The Union’s call to rely more on “green oil” for heating is not very realistic. Because more climate-friendly fuels will only be available to a very limited extent in the foreseeable future and are also more urgently needed in the transport sector, the prices for them are likely to be so high that oil-only heating systems are hardly attractive compared to other climate-friendly heating systems.
In addition, it would hardly benefit the climate as a whole because the quantities of more climate-friendly fuels used for heating would be lacking in other sectors such as aviation. This would not only jeopardize the achievement of climate targets but would also pose a high risk to the national budget due to the possibility of missing EU targets.
In the debates about the climate crisis, species extinction, and sustainable agriculture, which are once again taking place at the Green Week, one factor is often overlooked: competition for land. Fields and pastures are the basis of every agricultural business. At the same time, land is the basis of existence for all citizens: a common good.
This non-renewable resource is hotly contested. It is needed for the expansion of renewable energies, for nature conservation and agriculture, for residential and transportation areas, and for urban and rural development. More and more often, green is pitted against green when it comes to the old questions: Who owns the land, and who is allowed to use it for what? But there are also ideas to defuse the conflicts.
What‘s more, the soil is not healthy either, but compacted in many places, damaged by agricultural poisons, depleted, and dried out. Yet the diversity of organisms in the soil is important for a healthy diet, biodiversity on the surface and also for more climate action. The livelier the soil is, the better it builds up humus, stores carbon, cools, cleans and seeps away water, and mitigates flood disasters.
Competition is causing land prices to rise continuously. Over the past twelve years, prices for agricultural land have doubled in western Germany and in some cases more than quadrupled in eastern Germany. In 2021 alone, they rose by an average of 10.3 percent to EUR 29,545 per hectare. In 2023, it was already EUR 33,400.
Many factors determine how high land prices climb, but in some regions, the energy transition plays a central role. In the case of ground-mounted photovoltaic systems, for example, investors are expecting such high returns that they are putting exorbitant purchase or lease prices on the table. Family farms are often no longer able to keep up. The demise of farms is accelerating.
However, investors “often do not see it as a priority” to promote biodiversity and soil fertility, according to a 2021 report by the Federal Agency for Nature Conservation (BfN), “as these long-term investments do not promise short-term returns.” In addition, the increase in short leases easily promotes a “focus on maximum yields” and thus “highly intensive land management” – also to the detriment of the climate.
There are many political levers available to solve the complex land problem.
Above all, however, citizens and experts from the various sectors must talk to each other more at the regional level, learn from each other, and find multifunctional solutions together: This became clear at the Federal Environment Ministry’s agricultural congress a few days ago. New committees could be created for this purpose, but spatial planning could also be strengthened financially and in terms of personnel.
Species conservation, climate action, the agricultural turnaround, and climate-friendly cities would all have to be taken into account: “If you don’t forget the idea, you can make the right decisions,” said Claudia Bönnighausen, nature conservation expert for the state government of Schleswig-Holstein. And she spoke of “great work.”
Editor’s note: In an earlier version of the text, it was mistakenly stated that moors need to be “drained to store CO2.” Of course, the opposite is true – moors need to be re-wetted. We have corrected the error.
The global economy could shrink by half between 2070 and 2090 “unless immediate political action is taken to address the risks posed by the climate crisis.” This is the conclusion of the new report “Planetary Solvency,” produced by the Institute and Faculty of Actuaries in collaboration with Exeter University. For the report, a framework for better assessment of climate-related risks was developed to help people in positions of responsibility make better decisions.
The new Global Risk Report, which is published every year to coincide with the World Economic Forum in Davos, also classifies environment-related risks as particularly serious. Over the next two years, the Risk Report sees extreme weather events and environmental pollution among the ten greatest risks for the world. It places extreme weather in second place after misinformation and disinformation, and environmental pollution in sixth place.
In the longer term of ten years, environmental risks will continue to grow: According to the report, they will account for five of the ten biggest global risks. Extreme weather is in first place, followed by species extinction and the collapse of entire ecosystems, critical changes to earth systems, and the scarcity of natural resources. Misinformation and disinformation follow in fifth place. Environmental pollution is in 10th place. ae
In a study published on Tuesday, the Center for European Policy (CEP) warns that the EU’s automotive strategy could fail. The researchers conducted the study on behalf of the European manufacturers’ association ACEA, which Table.Briefings was able to view in advance.
The de facto end of combustion engines for cars and light commercial vehicles in 2035 and the lack of prospects for operating heavy commercial vehicles with alternative fuels could mean the end of the affected industries in the EU, it says. The strategy of relying solely on electric drive systems for cars and light commercial vehicles and on electric and hydrogen drive systems for trucks after 2035 is threatening to fail, as demand will not materialize due to unsatisfactory framework conditions. Consumers still do not see electric vehicles as a superior technology compared to combustion engines when it comes to total cost of ownership (TCO), range, and charging and refueling options.
In no other relevant automotive market in the world is automotive regulation so one-sidedly focused on battery-electric solutions and as strict as in the EU. As a result, EU regulation impairs the competitiveness of the domestic industry. “Many countries with a significant demand and/or automotive industry are pursuing medium and long-term multi-technology strategies, which are also reflected in their CO2 emission regulations.”
It should be questioned whether EU legislation should actually restrict the ability of EU car manufacturers to adapt to the conditions of the global automotive market by “imposing a de facto ban on combustion engines for cars and vans on their domestic market,” the researchers appeal.
The authors analyzed the Commission’s impact assessment of the CO2 fleet legislation as part of the Fit for 55 package. In its legislative proposal, the Commission selected the strictest of three scenarios. The EU climate targets (minus 55 percent in 2030 and net zero in 2050) could also be achieved in the other two scenarios with less stringent interventions in CO2 fleet legislation. The ETS 2 provides for this. The researchers conclude: “The long-term goal of complete decarbonization of road transport can also be achieved with more flexibility in the CO2 emission standards for cars and vans as well as for trucks.”
The authors present three options for the review of CO2 fleet legislation, which is due by 2026 at the latest according to EU legislation:
1. A change in CO2 fleet legislation with the following options:
2. More flexibility for manufacturers with regard to the CO2 fleet limits:
3. Use of e-fuels in new vehicles after the end of combustion engines in 2035. mgr
The US Federal Reserve (Fed) is withdrawing from the global central bank climate initiative NGFS shortly before Donald Trump takes office. The reason is that its increasingly expanded remit lies outside the Fed’s legal mandate, the central bank announced on Friday.
Founded in 2017, the NGFS (Network for Greening the Financial System) is a global network of central banks and supervisory authorities committed to a more sustainable financial system. The Fed joined the group in 2020 and has since taken some steps to incorporate climate change into its work through preliminary analyses and reports. However, Fed Chairman Jerome Powell has repeatedly emphasized that the Fed’s role is limited. He stated that the Fed was not responsible for setting climate policy and that the matter was in the hands of Congress.
Before the start of Trump’s second term in office, the major US banks were already pulling out of the industry’s largest climate alliance in droves. J.P. Morgan was the latest to leave the Net Zero Banking Alliance (NZBA). Republicans had previously accused the companies of violating antitrust law and driving up the price of CO2.
Meanwhile, four of Canada’s largest banks – Toronto-Dominion Bank, Bank of Montreal, National Bank of Canada, and Canadian Imperial Bank of Commerce (CIBC) – announced on Friday that they would withdraw from the NZBA and join the six major US banks. European banks are also threatening to leave the alliance unless it “softens its rules,” as reported by the Financial Times. They cited “concerns about the future of net-zero cooperation” under a US President Trump as the reason.
This is precisely why the world’s largest asset manager BlackRock recently withdrew from the investor alliance “Net Zero Asset Managers Initiative” (NZAMI), which could lead to a further wave of withdrawals. rtr/lb
The EU Commission plans to examine whether permanent carbon removals should be integrated into the European Emissions Trading System (ETS) by the middle of next year. This is according to a response from EU Climate Action Commissioner Wopke Hoekstra to Members of the European Parliament. The Commission is currently developing methods for certifying carbon emissions. It aims to “facilitate investment in innovative carbon removal technologies in the EU and at the same time combat greenwashing,” said the Dutchman.
If the assessment for integration into the ETS is positive, the Commission will present a corresponding legislative proposal, including an impact assessment. Over the course of the year, the Commission will also consult with stakeholders on how the financing for carbon removals can be boosted, writes Hoekstra. luk
Climate Home News: NZBA withdrawals offer opportunities for European banks. Lucie Pinson, founder of the NGO Reclaim Finance, sees the sudden withdrawal of the six largest US banks from the UN-initiated Net Zero Banking Alliance (NZBA) as an alarming sign of these banks’ superficial commitment to climate protection. In contrast, some of the largest European banks have shown that an alternative approach is possible, she writes in the guest commentary. Read the article
New York Times: Industry should pay. The fires in Los Angeles have reignited calls for a “climate superfund” in California. Although a bill to this effect was introduced last year, there has been no progress to date. However, Kassie Siegel, Director of the Climate Law Institute at the Center for Biological Diversity, expects the bill to be reintroduced soon. The aim of the bill is to make companies pay for the consequences of climate change. Read the article
Deutsche Welle: Study: Thawing permafrost threatens millions of people. According to the latest findings, the melting of permafrost in Arctic regions poses a threat to the way of life of up to three million people. The main causes of this are the destruction of infrastructure and problems with transportation and supply lines, according to a study carried out by experts from Austria, Denmark, and Sweden, among others. Read the article
FAZ: How can the energy transition break the deadlock? Although the share of renewable energies in electricity production in Germany is increasing, there is no comprehensive plan for the success of the energy transition. Simply installing solar panels is not enough. There is also the question of what role the energy-intensive industry in particular will play in the national economy in the future. Read the article
WELT: Saving CO2 in the construction industry. The construction industry could play a key role in the fight against climate change in the future. Various techniques aim to remove CO2 from the atmosphere and store it in buildings. According to a study, additives in concrete and asphalt alone – such as certain minerals or processed industrial waste – could bind almost 11.5 billion tons of CO2 worldwide every year. Read the article
All eyes were on Washington, D.C. yesterday. From a climate perspective at least, the day was reminiscent of “Groundhog Day,” because for the USA it brought another withdrawal from the Paris Agreement – and global attention, the elixir of life for the avowed climate denier, enemy of renewables and demolition contractor of US democracy, Donald Trump. We can’t escape it either. Today, we’ll look at the details and background, and shed light on what the announced withdrawal of the USA from global responsibility means – for the USA, but also for global climate policy.
In Germany, the problems are one size smaller but still crucial: On the occasion of the Green Week, we write about the competition for good soil between farmers, nature conservation and climate action – and show ways in which these demands can be reconciled. And because everyone here is eagerly awaiting the Bundestag elections, we continue with our fact check on energy and climate policy. Today we have the hot topic of recent years for you: The use of heat pumps and the idea of heating with supposedly “green oil.” We analyze how realistic the proposal is.
Don’t forget: Global emissions must fall rapidly by 2030 if global warming is not to get completely out of hand. Despite the headwinds in Washington and Berlin, the climate issue needs as much attention as possible over the next four years.
US President Donald Trump is once again directing the USA towards largely turning its back on national and international climate action. Immediately after his inauguration as the 47th POTUS on Monday afternoon local time in Washington, D.C., the White House declared, among many other “first” priorities, “President Trump will withdraw from the Paris Climate Agreement.” This means that the USA is once again changing from a country that is seriously striving for climate action and a climate-neutral restructuring of the economy to a state that favors fossil fuels and industries.
This new US position weakens the climate protection camp internationally and strengthens the front of petro-states such as Russia, Venezuela, Saudi Arabia, and other oil and gas producers. According to the White House, Trump wants to put an end to the “climate extremism” of his predecessor and
The announcement was widely expected. It means that the USA will no longer be part of the agreement one year after the official announcement of its withdrawal from the agreement at the UN Climate Change Secretariat – which has not yet taken place. At the next COP30 in Belém, Brazil, however, it will still be a full member of the conference.
The head of UN Climate Change, Simon Stiell, told Table.Briefings: “The global clean energy boom, which was worth two trillion dollars last year alone and is rising fast, is the economic growth deal of the decade.” Those who participate in it can expect “massive profits, millions of industrial jobs, and clean air.” Those who ignore it are “sending these vast riches to economic competitors, while climate disasters such as droughts, wildfires, and superstorms only get worse”. For the USA, says Stiell, “the door to the Paris Agreement remains open.”
It is unclear what the announcement means for US climate and energy policy in concrete terms. Many Democrat-governed US states and cities want to stick to their climate plans, as does a large part of the industry. Whether there will be new gas and oil drilling is just as unclear as the fate of the multi-billion investment program IRA, which benefits many rural areas. Just like the climate plans of the Obama and Biden administrations, Trump’s U-turn in many areas will be challenged and delayed by court cases. Government agencies such as the Environmental Protection Agency (EPA) are also said to be prepared to slow down the reversal of their work.
There was no talk of the USA withdrawing from the UN Framework Convention on Climate Change, which the Trump camp had also considered, on the first day in office. Such a withdrawal would have far greater consequences, and would also release the USA from all financial obligations, but would potentially be difficult to implement legally. It is unclear among legal experts in the USA whether a majority in the US Congress would be required for this.
In the US, Trump’s departure from climate policy is meeting a prepared counter-front. An alliance of 5,000 stakeholders from companies, states, cities, universities, and institutions wants to continue to drive forward US climate action with the “America is all in” alliance, as it did during Trump’s first term in office. States such as California want to maintain their progressive laws on CO2 standards for cars, for example, and a large proportion of the funds from the IRA infrastructure program have already been spent and three-quarters of them have been planned in Republican-governed states. Even without help from the US federal government, the USA can achieve a 48 percent reduction in emissions by 2035. However, this is a far cry from the 61 to 66 percent reduction that the Biden administration’s NDC had just announced.
By withdrawing from the agreement, the Trump administration is putting its country in the same league as Iran, Libya, and Yemen, which are also not part of the Paris Agreement. Unlike the USA, even North Korea is now one of the 194 countries and the EU that have committed to climate plans, emissions reductions, and financial solidarity as parties to the agreement. At the COP29 in Baku, even Russia, as one of the brakemen in the process, had advised the USA to remain in the agreement. And the CEO of the oil company Exxon also campaigned for the USA to remain in the Paris Agreement.
The USA’s departure from “Paris” is also exacerbating the UN Climate Change Secretariat’s financial problems. To date, the USA has accounted for around a quarter of the UN Climate Change budget – around USD 20 million a year. The UN statistics show that the Biden administration quickly paid off the US’s historic arrears before the end of its term of office. In any case, the Climate Change Secretariat is suffering from being assigned more and more tasks by the UN states, but not a correspondingly higher budget. In the draft budget for 2026/27, which will be debated this summer, either the other states would have to compensate for the USA’s share – or the work of the UN agency would be reduced. Even if private donors were to step in, they would not be able to contribute to UN Climate Change’s 74 million “core budget.”
It may even be more rational for a US government that wants to slow down the climate process to remain in the agreement and disrupt it “from within” – as Saudi Arabia or Russia, for example, have been doing for decades, sometimes very effectively. After the withdrawal, the USA will lose its right to vote in the UN negotiations under the Paris Agreement in a year’s time – i.e. on all important issues at a COP. According to the UN, the country will then be given “observer” status – it can then comment on certain issues like other observers (environmental groups, representatives of civil society), but will no longer have an official say in setting the agenda. US representatives are also no longer allowed to succeed US representatives on international climate committees, such as the Green Climate Fund or the Loss and Damage Fund, once their term of office has ended. Overall, the USA’s influence on international climate policy is dwindling – and the relative weight of its rival China is increasing, according to many experts.
However, the Trump administration is hardly pursuing a rational policy on this issue. While the accusation that the Paris Agreement puts the USA at a disadvantage is hardly tenable, the propagated “energy dominance” through increased oil and gas drilling is just as questionable. The USA is already the world’s largest oil and gas producer and global demand is stagnating rather than increasing. The US energy industry is threatening to create expensive fossil fuel overcapacity: An oil auction round in Alaska last year yielded no bids. Demand for gas in Europe will fall in the medium term. The new LNG terminals planned to date on the south coast of the USA will already double export capacities in the next few years. Biden’s ban on the construction of new LNG terminals in the USA, which Trump now wants to lift, could, like his ban on new drilling on public land, protect the industry from expensive bad investments.
The USA is the only country so far to have joined the Paris Agreement twice and withdrawn twice. Similar to the Kyoto Protocol, the historically biggest polluter is thus leaving a treaty that it itself helped to shape through diplomatic lobbying and strongly influenced in its favor. Many of the rules on transparency, as well as the exclusion of liability for climate damage, are the result of pressure from the USA. Many emerging and developing countries criticize the dominance of the USA in these negotiations – exactly contrary to the view of Trump and the US Republicans that the Paris Agreement is “unfair to the USA” and favors China.
Both the CDU/CSU and the FDP want to reverse the most recent amendment to the Building Energy Act (also known to the public as the “Heating Act”). They criticize the fact that it focuses primarily on heat pumps and district heating and discriminates against other types of heating.
Instead of defining exactly which new heating systems may be installed in the future, the decarbonization of the building sector is to take place primarily via the CO2 price, which will gradually make heating with fossil fuels more expensive. Even oil heating systems, which should only be permitted in exceptional cases from 2026 under the grand coalition’s old Heating Act, should have a future if the CDU/CSU have their way: They could become climate-friendly via a quota for “green heating oil,” according to the CDU/CSU’s joint election manifesto. Jens Spahn, a member of the CDU/CSU parliamentary group, recently promoted this demand at the Heat Pump Forum, much to the annoyance of the heat pump industry.
In fact, the Heating Act would not even have to be amended to implement the Union’s demand, because at least in theory, the installation of new oil heating systems is also possible under the current rules. “The compliance options provided for by the current act also provide for solutions for heating oil customers,” says Ernst-Moritz Bellingen, Head of the Heating Market at En2X, the former mineral oil association that is now called the Fuels and Energy trade association. This is possible by combining an oil heating system with a heat pump or by “using a fuel with a corresponding renewable share” – in other words, what the Union calls “green oil.”
However, it is questionable whether this will happen in practice under the current law: When the law comes into full force after the completion of municipal heating planning from mid-2026 (in large cities) or mid-2028 (in smaller towns), new oil and gas heating systems will have to be at least 65% climate-neutral after a transitional period of five years. And climate-friendly heating oil, which would meet this requirement, is currently hardly available and significantly more expensive than fossil fuels. It is therefore also conceivable that the Union could set a lower quota than the one previously envisaged or set longer deadlines.
The impact of an amendment to the act and the introduction of a quota for “green heating oil” would depend heavily on how high this would be and what exactly the Union understands by this. This is because there are various products that can replace fossil heating oil and have very different properties:
No matter which technology is used: Climate-friendly fuels are likely to be more expensive for customers than fossil heating oil in any case. More importantly, however, they would be of little benefit to the climate, at least for the foreseeable future. The reason for this is their limited availability: Both biodiesel from energy crops and HVO from old cooking oils and fat waste require raw materials that are not available in unlimited quantities.
And even if an expansion were to succeed – for example through an even greater use of waste materials and the increased cultivation of energy crops – there is likely to be strong competition. This is because the transport sector is also currently relying primarily on HVO and, in the future, PtL fuels for decarbonization. This not only applies to road transport, where HVO is to be used to achieve the GHG quota. In aviation, the EU stipulates that six percent of kerosene must be produced sustainably by 2030; the majority of this is to be covered by HVO, which will greatly increase the demand for this scarce commodity. Last year, the Bundestag’s scientific services warned that the available quantity “will not be sufficient in the long term to comprehensively decarbonize the transport sector.”
Electricity-based PtL fuels, on the other hand, can theoretically be produced in larger quantities. However, according to the aviation association BDL, they are not an alternative to meeting the EU quotas, at least not in the foreseeable future: Their availability is “effectively non-existent,” the association writes. And: “A timely market ramp-up is also not foreseeable at present.”
Because the total quantity of climate-friendly fuels is limited, the UBA believes that it only makes sense to use them where there is currently no alternative – such as in air and sea transport. Burning them in oil heating systems, on the other hand, does nothing for the climate. “Everything that is used for heating would be missing in the transport sector,” says efficiency expert Schubert.
This would not only be a problem for Germany’s climate footprint but also for the national budget. Even though the sector targets in the German Climate Protection Act are no longer binding since the recent amendment, the EU continues to set its member states specific climate targets for the individual sectors. Germany has recently failed to meet these targets in both the building and transport sectors. If this remains the case, the German government will either have to pay fines or buy emission allowances from other member states that exceed their targets. This would be “a budget risk worth billions,” warns Agora Director Müller.
Reversing the amendment to the Building Energy Act is likely to be difficult to implement in reality. Of the CDU/CSU’s potential coalition partners, only the FDP shares this demand. But even if the FDP were to re-enter the Bundestag, all the polls suggest that the CDU/CSU and FDP would not have a majority. And the SPD or the Greens, with whom the CDU/CSU could achieve a government majority, want to stick to the amended GEG in principle – also because there is hardly any other way of achieving the climate targets in the building sector, at least to some extent.
The Union’s call to rely more on “green oil” for heating is not very realistic. Because more climate-friendly fuels will only be available to a very limited extent in the foreseeable future and are also more urgently needed in the transport sector, the prices for them are likely to be so high that oil-only heating systems are hardly attractive compared to other climate-friendly heating systems.
In addition, it would hardly benefit the climate as a whole because the quantities of more climate-friendly fuels used for heating would be lacking in other sectors such as aviation. This would not only jeopardize the achievement of climate targets but would also pose a high risk to the national budget due to the possibility of missing EU targets.
In the debates about the climate crisis, species extinction, and sustainable agriculture, which are once again taking place at the Green Week, one factor is often overlooked: competition for land. Fields and pastures are the basis of every agricultural business. At the same time, land is the basis of existence for all citizens: a common good.
This non-renewable resource is hotly contested. It is needed for the expansion of renewable energies, for nature conservation and agriculture, for residential and transportation areas, and for urban and rural development. More and more often, green is pitted against green when it comes to the old questions: Who owns the land, and who is allowed to use it for what? But there are also ideas to defuse the conflicts.
What‘s more, the soil is not healthy either, but compacted in many places, damaged by agricultural poisons, depleted, and dried out. Yet the diversity of organisms in the soil is important for a healthy diet, biodiversity on the surface and also for more climate action. The livelier the soil is, the better it builds up humus, stores carbon, cools, cleans and seeps away water, and mitigates flood disasters.
Competition is causing land prices to rise continuously. Over the past twelve years, prices for agricultural land have doubled in western Germany and in some cases more than quadrupled in eastern Germany. In 2021 alone, they rose by an average of 10.3 percent to EUR 29,545 per hectare. In 2023, it was already EUR 33,400.
Many factors determine how high land prices climb, but in some regions, the energy transition plays a central role. In the case of ground-mounted photovoltaic systems, for example, investors are expecting such high returns that they are putting exorbitant purchase or lease prices on the table. Family farms are often no longer able to keep up. The demise of farms is accelerating.
However, investors “often do not see it as a priority” to promote biodiversity and soil fertility, according to a 2021 report by the Federal Agency for Nature Conservation (BfN), “as these long-term investments do not promise short-term returns.” In addition, the increase in short leases easily promotes a “focus on maximum yields” and thus “highly intensive land management” – also to the detriment of the climate.
There are many political levers available to solve the complex land problem.
Above all, however, citizens and experts from the various sectors must talk to each other more at the regional level, learn from each other, and find multifunctional solutions together: This became clear at the Federal Environment Ministry’s agricultural congress a few days ago. New committees could be created for this purpose, but spatial planning could also be strengthened financially and in terms of personnel.
Species conservation, climate action, the agricultural turnaround, and climate-friendly cities would all have to be taken into account: “If you don’t forget the idea, you can make the right decisions,” said Claudia Bönnighausen, nature conservation expert for the state government of Schleswig-Holstein. And she spoke of “great work.”
Editor’s note: In an earlier version of the text, it was mistakenly stated that moors need to be “drained to store CO2.” Of course, the opposite is true – moors need to be re-wetted. We have corrected the error.
The global economy could shrink by half between 2070 and 2090 “unless immediate political action is taken to address the risks posed by the climate crisis.” This is the conclusion of the new report “Planetary Solvency,” produced by the Institute and Faculty of Actuaries in collaboration with Exeter University. For the report, a framework for better assessment of climate-related risks was developed to help people in positions of responsibility make better decisions.
The new Global Risk Report, which is published every year to coincide with the World Economic Forum in Davos, also classifies environment-related risks as particularly serious. Over the next two years, the Risk Report sees extreme weather events and environmental pollution among the ten greatest risks for the world. It places extreme weather in second place after misinformation and disinformation, and environmental pollution in sixth place.
In the longer term of ten years, environmental risks will continue to grow: According to the report, they will account for five of the ten biggest global risks. Extreme weather is in first place, followed by species extinction and the collapse of entire ecosystems, critical changes to earth systems, and the scarcity of natural resources. Misinformation and disinformation follow in fifth place. Environmental pollution is in 10th place. ae
In a study published on Tuesday, the Center for European Policy (CEP) warns that the EU’s automotive strategy could fail. The researchers conducted the study on behalf of the European manufacturers’ association ACEA, which Table.Briefings was able to view in advance.
The de facto end of combustion engines for cars and light commercial vehicles in 2035 and the lack of prospects for operating heavy commercial vehicles with alternative fuels could mean the end of the affected industries in the EU, it says. The strategy of relying solely on electric drive systems for cars and light commercial vehicles and on electric and hydrogen drive systems for trucks after 2035 is threatening to fail, as demand will not materialize due to unsatisfactory framework conditions. Consumers still do not see electric vehicles as a superior technology compared to combustion engines when it comes to total cost of ownership (TCO), range, and charging and refueling options.
In no other relevant automotive market in the world is automotive regulation so one-sidedly focused on battery-electric solutions and as strict as in the EU. As a result, EU regulation impairs the competitiveness of the domestic industry. “Many countries with a significant demand and/or automotive industry are pursuing medium and long-term multi-technology strategies, which are also reflected in their CO2 emission regulations.”
It should be questioned whether EU legislation should actually restrict the ability of EU car manufacturers to adapt to the conditions of the global automotive market by “imposing a de facto ban on combustion engines for cars and vans on their domestic market,” the researchers appeal.
The authors analyzed the Commission’s impact assessment of the CO2 fleet legislation as part of the Fit for 55 package. In its legislative proposal, the Commission selected the strictest of three scenarios. The EU climate targets (minus 55 percent in 2030 and net zero in 2050) could also be achieved in the other two scenarios with less stringent interventions in CO2 fleet legislation. The ETS 2 provides for this. The researchers conclude: “The long-term goal of complete decarbonization of road transport can also be achieved with more flexibility in the CO2 emission standards for cars and vans as well as for trucks.”
The authors present three options for the review of CO2 fleet legislation, which is due by 2026 at the latest according to EU legislation:
1. A change in CO2 fleet legislation with the following options:
2. More flexibility for manufacturers with regard to the CO2 fleet limits:
3. Use of e-fuels in new vehicles after the end of combustion engines in 2035. mgr
The US Federal Reserve (Fed) is withdrawing from the global central bank climate initiative NGFS shortly before Donald Trump takes office. The reason is that its increasingly expanded remit lies outside the Fed’s legal mandate, the central bank announced on Friday.
Founded in 2017, the NGFS (Network for Greening the Financial System) is a global network of central banks and supervisory authorities committed to a more sustainable financial system. The Fed joined the group in 2020 and has since taken some steps to incorporate climate change into its work through preliminary analyses and reports. However, Fed Chairman Jerome Powell has repeatedly emphasized that the Fed’s role is limited. He stated that the Fed was not responsible for setting climate policy and that the matter was in the hands of Congress.
Before the start of Trump’s second term in office, the major US banks were already pulling out of the industry’s largest climate alliance in droves. J.P. Morgan was the latest to leave the Net Zero Banking Alliance (NZBA). Republicans had previously accused the companies of violating antitrust law and driving up the price of CO2.
Meanwhile, four of Canada’s largest banks – Toronto-Dominion Bank, Bank of Montreal, National Bank of Canada, and Canadian Imperial Bank of Commerce (CIBC) – announced on Friday that they would withdraw from the NZBA and join the six major US banks. European banks are also threatening to leave the alliance unless it “softens its rules,” as reported by the Financial Times. They cited “concerns about the future of net-zero cooperation” under a US President Trump as the reason.
This is precisely why the world’s largest asset manager BlackRock recently withdrew from the investor alliance “Net Zero Asset Managers Initiative” (NZAMI), which could lead to a further wave of withdrawals. rtr/lb
The EU Commission plans to examine whether permanent carbon removals should be integrated into the European Emissions Trading System (ETS) by the middle of next year. This is according to a response from EU Climate Action Commissioner Wopke Hoekstra to Members of the European Parliament. The Commission is currently developing methods for certifying carbon emissions. It aims to “facilitate investment in innovative carbon removal technologies in the EU and at the same time combat greenwashing,” said the Dutchman.
If the assessment for integration into the ETS is positive, the Commission will present a corresponding legislative proposal, including an impact assessment. Over the course of the year, the Commission will also consult with stakeholders on how the financing for carbon removals can be boosted, writes Hoekstra. luk
Climate Home News: NZBA withdrawals offer opportunities for European banks. Lucie Pinson, founder of the NGO Reclaim Finance, sees the sudden withdrawal of the six largest US banks from the UN-initiated Net Zero Banking Alliance (NZBA) as an alarming sign of these banks’ superficial commitment to climate protection. In contrast, some of the largest European banks have shown that an alternative approach is possible, she writes in the guest commentary. Read the article
New York Times: Industry should pay. The fires in Los Angeles have reignited calls for a “climate superfund” in California. Although a bill to this effect was introduced last year, there has been no progress to date. However, Kassie Siegel, Director of the Climate Law Institute at the Center for Biological Diversity, expects the bill to be reintroduced soon. The aim of the bill is to make companies pay for the consequences of climate change. Read the article
Deutsche Welle: Study: Thawing permafrost threatens millions of people. According to the latest findings, the melting of permafrost in Arctic regions poses a threat to the way of life of up to three million people. The main causes of this are the destruction of infrastructure and problems with transportation and supply lines, according to a study carried out by experts from Austria, Denmark, and Sweden, among others. Read the article
FAZ: How can the energy transition break the deadlock? Although the share of renewable energies in electricity production in Germany is increasing, there is no comprehensive plan for the success of the energy transition. Simply installing solar panels is not enough. There is also the question of what role the energy-intensive industry in particular will play in the national economy in the future. Read the article
WELT: Saving CO2 in the construction industry. The construction industry could play a key role in the fight against climate change in the future. Various techniques aim to remove CO2 from the atmosphere and store it in buildings. According to a study, additives in concrete and asphalt alone – such as certain minerals or processed industrial waste – could bind almost 11.5 billion tons of CO2 worldwide every year. Read the article