Robert Habeck has headed the newly created Federal Ministry for Economic Affairs and Climate Protection (BMWK for short) since December. On Tuesday (January 11), the green politician released his "climate protection balance sheet" and laid out plans for the coming months. "We are starting with a severe deficit. Previous climate protection measures were inadequate in all sectors, and the climate targets for 2022 and 2023 are foreseen to be missed," he told a news conference.

The new measures will be implemented through two separate legislative acts. First, what Habeck is calling an "Easter multiple plan" that will include provisions that can be implemented quickly, is expected to be introduced in the spring and will pass parliamentary processes in early summer. In addition, the two branches of the German parliament, the Bundestag and the Bundesrat, will decide on a "summer package" of further measures in the second half of the year. Habeck is targeting the state aid needed for the European Commission to ratify the two climate protection laws this year.

At the heart of the new German government coalition comprising the Social Democrats (SPD), the Greens and the Freedom Party (FDP) is to increase the share of renewable energy in total electricity consumption to 80% by 2030. This goes hand in hand with higher targets for photovoltaics and wind power. By 2030, PV installed capacity is expected to increase by around 140-200GW. In Habeck's opening balance, it is planned to gradually increase the annual expansion to 20GW by 2028. It should remain stable at 20GW per year through 2029 and 2030. For the current year, the ministry has only assumed a slight increase of around 7GW.

The minister wants to ensure strong growth in demand for photovoltaics through a new version of the German Renewable Energy Act, the so-called EEG. In a legal amendment due in the spring, a route will be set for larger tender volumes. "Starting at a very ambitious level from the outset, the technology-specific capabilities will continue to increase," the minister said.

But higher bid volumes alone will not be enough, solar should be unlocked through "broad single measures" that include raising current acreage limits in bids to provide more ground for solar parks while adhering to conservation standards. The government has also agreed to make PV systems mandatory in new commercial buildings, while in new residential buildings, the coalition wants PV systems to become the rule.

Lowering electricity prices is also critical for the new federal government, especially to more forcefully electrify the heating and transport sectors. Therefore, in the coming year, the EEG surcharge should be financed through the federal budget and no longer through electricity bills paid by consumers. The government hopes heat pumps and electric cars will become more attractive, which should also be sparked by the Easter multiple plan.