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Government reports show Germany on track to achieve major milestone in European energy sector — here's why it's important

To keep up the momentum, the government is rolling out innovative "climate protection contracts" that reward companies for the extra costs of greener production methods.

To keep up the momentum, the government is rolling out innovative "climate protection contracts" that reward companies for the extra costs of greener production methods.

Photo Credit: iStock

Germany, Europe's biggest economy, cut its heat-trapping pollution by a whopping 10% in 2023 — the largest drop since reunification in 1990.

This exciting progress comes even as the country's economy shrank by 0.3% last year due to high energy prices and weaker export demand.

So, what's the secret behind Germany's success? A significant factor has been the rise in green power production, which now accounts for nearly 52% of the country's electricity consumption. That's right — according to Reuters, more than half of Germany's power is coming from renewable sources.

This increase, combined with a 4% decline in overall energy use and more electricity imports from sources like French nuclear reactors, has helped reduce pollution from the energy sector.



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But it's not just the energy industry making strides. Germany's industrial sector also saw a notable 7.7% reduction in pollution last year despite only a 1.2% dip in output. Even energy-intensive industries like chemicals and metals managed to cut pollution while keeping production declines modest.

These improvements mean Germany is now on track to meet its ambitious 2030 climate targets, which aim to slash pollution by 65% compared to 1990 levels. The country is already around 46% of the way there.

To keep up the momentum, the government is rolling out innovative "climate protection contracts" that reward companies for the extra costs of greener production methods. Carbon pricing will also nudge the industry toward climate neutrality.

German citizens are doing their part, too. A milder winter in 2023 helped cut pollution from heating buildings by over 7%. Plus, a new law will phase out oil and gas heating systems, empowering people to make their homes greener.

Climate Action and Economy Minister Robert Habeck affirmed the government's commitment to a sustainable economic recovery, noting that 2023 was a good year while confirming there are more planned measures for the future. 

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