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Germany's new chancellor faces coalition challenges affecting climate goals

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CDU/CSU leader Friedrich Merz is set to become Germany's new Chancellor. (Photo: Friedrich Merz's Facebook)

Germany's election results nearly settled, with the Christian Democratic Union / Christian Social Union (CDU/CSU), leading the race, as expected. However, despite winning, they did not secure an absolute majority and will need to form a coalition government.

While the new administration’s focus is not primarily on climate and energy issues, experts are urging for the swift formation of a new cabinet to ensure that policies can move forward, and Germany can maintain its influence on the international stage.

CDU/CSU leading by a wide margin in polls

The CDU/CSU bloc garnered a substantial lead with 28.5% of the vote, well ahead of other parties. The Alternative for Germany (AfD) followed with 20.8%, while outgoing Chancellor Olaf Scholz's Social Democratic Party (SPD) came in third with just 16.4%, marking the SPD's worst result since World War II.

CSU/CSU leader Friedrich Merz is set to become the new Chancellor, and he has committed to forming a coalition government within two months. If Merz keeps his pre-election promise not to cooperate with the far-right AfD, the likelihood of an alliance with the SPD increases. He may even need to form a government with the Green Party, which could prolong the government formation process. Historically, cabinet reshuffles in Germany have taken anywhere from one month to as long as six months.

The new government is expected to uphold Germany's 2045 net-zero target and support the expansion of renewable energy. However, balancing climate action with economic stability will be a major test for the Merz administration. Key challenges include addressing the speed of carbon reduction, the energy transition, and the decarbonization plan, all of which will require careful negotiation among coalition partners.

The CDU/CSU bloc garnered a substantial lead with 28.5% of the vote, well ahead of other parties. (Chart: Clean Energy Wire)

The CDU/CSU garnered a substantial lead with 28.5% of the vote, well ahead of other parties. (Chart: Clean Energy Wire)

Expert presses for clear guidelines on carbon neutrality

Furthermore, the new government will need to find ways to balance the competitiveness of Germany’s manufacturing sector with decarbonization efforts. Addressing the transformation of the heating industry to make it more environmentally friendly, along with implementing transportation reforms and expanding climate adaptation investments, will be crucial. These issues will require coordination and careful decision-making by the new government.

Marc Weissgerber, the head of the Berlin office for environmental think tank E3G, has called for Merz to form a cabinet quickly and establish clear guidelines for achieving the country’s carbon-neutral goals.

On the international front, Weissgerber urges the government to strengthen the “Clean Industrial Deal” and take a leadership role at the upcoming COP30 summit in Brazil, especially as the U.S. under the Trump administration was less proactive on climate action. This would provide Germany an opportunity to assert its influence globally.

Source: CLEWDW

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