Business, unions, and politicians call for postponement of Germany's climate neutrality to 2050

Krebber argues that Germany's previous solo path of aiming to become climate-neutral five years earlier than the EU makes the location more expensive without achieving any additional climate impact. "Die in Deutschland eingesparten CO2-Emissionen würden dann lediglich in anderen EU-Ländern freigesetzt," he said. Germany's climate target should therefore "dem europäischen Ziel angeglichen werden." In addition, industry needs a long-term perspective of at least ten years in order to be able to invest.

Connemann spoke out in favor of a "more realistic" timeline. "Wir wollen weniger CO2, nicht weniger Industrie, deshalb muss der Emissionshandel zur Wirklichkeit passen," she explained. At the same time, she warned: "Wer den Unternehmen 2039 die Brücke wegnehme, bevor das andere Ufer erreichbar sei, dürfe sich wundern, wenn niemand mehr investiere." Vassiliadis and Krebber see an adjustment of the target date as a way to relieve the German industry after years of recession and stagnation.

IG BCE's position on emissions trading

In an unpublished position paper, the IG BCE is demanding that the reduction pathway in the European Emissions Trading System be stretched out in time and only end in 2050. The union warns of rising costs and competitive disadvantages if the pathway is not adjusted. In the European Emissions Trading System, companies must hold emission certificates for their CO2 emissions; because the number of certificates gradually decreases, their value rises and creates an incentive — particularly for energy-intensive industries — to save greenhouse gases.

The EU Commission intends to present proposals for a reform of the Emissions Trading System in July. Germany has committed to reducing greenhouse gas emissions by at least 88 percent by 2040 compared to 1990 levels. The previous year, German greenhouse gas emissions were 48 percent below the 1990 level.

The Greens' counterposition

The Greens' parliamentary group in the Bundestag is opposed to the postponement. Deputy parliamentary group leader Julia Verlinden told the news agency AFP: "Das verbindliche Klimaziel 2045 gibt Planungs- und Zukunftssicherheit." The Greens are insisting on the legally enshrined target of greenhouse gas neutrality by 2045.

The coalition agreement of the governing parties CDU/CSU and SPD had explicitly retained the target year 2045 for climate neutrality. The demand from business and parts of the political landscape thus stands in contradiction to the line of the federal government. Berenberg Bank rated the RWE stock as "Buy" on July 3, 2026.

Background: Decarbonization and economic situation

Decarbonization refers to the transition to a carbon-free economy through the gradual replacement of fossil fuels such as coal, oil, and gas with renewable energies in order to reduce greenhouse gas emissions. Postponing the target year would formally slow down this process in Germany without changing the climate impact across the Union.

The debate is taking place amid a phase of economic weakness: Vassiliadis and Krebber point to years of recession and stagnation that have weighed on German industry. A postponement is intended to give companies breathing room to plan their investments on a longer-term basis and to avoid competitive disadvantages compared to locations outside the EU.

The battle lines are thus drawn: On one side stand RWE, IG BCE, IW, and parts of the CDU, demanding alignment with the EU target of 2050. On the other side, the Greens are insisting on the 2045 target and see it as a prerequisite for reliable planning. The EU Commission wants to present reform proposals in July that will set the framework for the coming years.