Climate action report The German Government s Climate Action Programme 2020

Transcription

1 Climate action report 2015 The German Government s Climate Action Programme 2020

2 2 Climate action report 2015 Imprint Published by Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB) Public Relations Division Berlin Germany Website: Edited by BMUB, Division KI I 1 Design design.idee, Büro für Gestaltung, Erfurt Printed by BMUB in-house printing service Picture credits See Page 83. Date November 2015 First Print 1,000 copies Where to order this publication Publikationsversand der Bundesregierung Postfach Rostock Germany Tel.: / Fax: / publikationen@bundesregierung.de Website: Notice This publication is part of the public relations work of the Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety. It is distributed free of charge and is not intended for sale. Printed on recycled paper.

3 Climate action report The German Government s Climate Action Programme

4 4 Climate action report 2015 Content Foreword 6 1 Executive summary 8 2 Introduction 10 3 Cross-cutting climate action reporting Climate action reporting description of the reporting obligations Emission trends National Inventory Report on Greenhouse Gas Emissions Projected emission trends 16 4 Fields of action and emission trends sectoral analysis Energy industry Industry Commerce/trade/services Households Transport Agriculture Land use, land use change and forestry Other emissions 25 5 Implementation of the Climate Action Programme s key policy measures Financing the measures set out in the Climate Action Programme Measures within the Climate Action Programme Emissions trading, European and international climate policy International cooperation Cooperation within the EU Emissions trading Reducing the impact of electricity generation on the climate Renewable energy Other measures, especially in the electricity sector Combined heat and power generation LED lead market initiative National Action Plan on Energy Efficiency Energy saving as a business opportunity and way of generating returns on investment Individual responsibility for increasing energy efficiency Climate-friendly building and housing strategy Long-term goal: climate-neutral building stock Energy efficiency in the buildings sector Training initiative in building efficiency Climate-friendly housing for low-income households Rents maps Energy efficiency measures and climate action in local authorities Climate-friendly heat generation Competition for ideas: making climate-friendly building an attractive option 50

5 Climate action report Climate change mitigation in the transport sector Making freight transport climate-friendly Making passenger transport climate-friendly Increased use of electric drives in vehicles Cross-cutting measures in the transport sector Climate change mitigation measures in air transport Supporting climate change mitigation in international maritime transport Other measures in the transport sector Reducing non-energy-related emissions in industry and in the commerce/trade/services sector Strengthening waste avoidance, recycling and reuse Reducing F-Gas emissions Increasing resource efficiency Waste management and circular economy measures; other emissions Agriculture Amendment to the Fertiliser Application Ordinance Increasing the percentage of land that is organically farmed Land use, land use change and forestry Conserving permanent grassland Peatland conservation The government s role in demonstrating best practice Public procurement: strengthening the Competence Centre for Sustainable Procurement and the Alliance for Sustainable Procurement The German government s programme of sustainability measures Climate-damaging subsidies Drawing up energy-efficient refurbishment timetables for the public sector Implementation of sustainability assessment systems at Länder, local authority and federal government level Research and development Research for the energy transition Research into preventing climate change Socio-environmental research Strengthening applied research in the urban design and buildings sector Advice, public education and independent initiatives to step up climate action Climate change mitigation in business Consumer action on climate change (prioritising electricity saving) Climate action in schools and educational establishments 71 6 Activities undertaken by the Länder, local authorities and social stakeholders Climate action undertaken by the Länder and local authority associations Social innovation and climate action 73 7 Monitoring implementation of the Climate Action Programme examining the institutional capacity available for continuous reporting and reviewing 74 8 The economic impact of the measures under the Climate Action Programme Climate Action Alliance Climate Action Plan Abbreviations 79 Figures 81 Tables 81 Picture credits 83

6 6 Climate action report 2015 Foreword Dear reader, In adopting its Climate Action Programme 2020 on 3 December 2014, the German government took a major step towards meeting our target of cutting greenhouse gas emissions by at least 40 percent by 2020, compared with 1990 levels. The Action Programme has set us on the right course to achieve this. The important thing now is to ensure that all the measures adopted are systematically implemented. The Climate Action Report gives the first account of implementation of the measures set out in the Action Programme. Although it has only been just under a year since they were adopted, great progress has already been made in implementing many of these measures and some have even been fully implemented. The German government is demonstrating that it not only announces targets but takes verifiable action to meet them. We are close to achieving our 2020 interim

7 Climate action report goal and are already taking the key steps needed to meet our long-term target of cutting greenhouse gas emissions by 2050 by between 80 and 95 percent below 1990 levels. In this way, Germany is sending out a clear signal to the international community before the start of the Climate Conference in Paris. One of our aims is to encourage other countries to make significant contributions towards reaching an ambitious global climate agreement. Dr. Barbara Hendricks Federal Minister for the Environment, Nature Conservation, Building and Nuclear Safety

8 8 Climate action report Executive summary On 3 December 2014, the German government adopted its Climate Action Programme 2020 and National Action Plan on Energy Efficiency (NAPE), which makes a key contribution to the Action Programme and therefore to meeting the government s climate targets. The Action Programme contains over 100 individual measures designed to ensure that the target of cutting greenhouse gas emissions in Germany by at least 40 percent below 1990 levels by 2020 is met. At the same time, the government decided to monitor implementation of the measures listed in the Climate Action Programme 2020 in a continual process and publish an annual climate action report detailing the progress of implementation, the latest emission trends and anticipated reductions. The government is fulfilling its commitment in publishing this climate action report. The report is not intended to be a basis for justifying new measures. The government has also commissioned the Federal Ministry for Economic Affairs and Energy (BMWi) to carry out a monitoring process to review implementation of the Energy Concept and its targets so that adjustments can be made if necessary. Germany was able to achieve a marked 24.0-percent reduction in greenhouse gas emissions between 1990 and This reduction is particularly significant in that it meant that Germany more than fulfilled its pledges from the first commitment period of the Kyoto Protocol to cut greenhouse gas emissions by an average of 21 percent from 1990 levels between 2008 and However, emissions the next year 2013 were up 2.4 percent on In particular the cold winter caused more carbon dioxide emissions from households and from the commerce/trade/services sector. According to initial estimates by the Federal Environment Agency, emissions in 2014 were once more down on the previous year by 4.3 percent or approximately 41 million tonnes of Carbone dioxide ( CO 2 ) equivalents. This equates to a decrease of roughly 27 percent since In addition to weather-related influences (mild winter), lower emissions in the electricity industry can be cited as one of the reasons for this. The starting point for drawing up the Action Programme was that the German government identified a climate change mitigation gap for 2020 of between five and eight percentage points. In total, implementation

9 Climate action report implementation of the Climate Action Programme s measures and those of the National Action Plan on Energy Efficiency. Under the current budget, the German government has allocated a total of 1.19 billion euros for measures under the National Action Plan on Energy Efficiency, plus another 0.81 billion euros from the Future Investments Programme, along with funds for the transport sector and for the implementation of efficiency measures under the raft of measures directed at the electricity industry (see Section 5.4.2). With this it is sending out a clear signal that it intends to promote more climate action and underlining its importance for sustainable growth, investment and jobs in Germany. The participation of all stakeholders and target groups plays a crucial role in meeting the German government s climate targets. The government therefore sets great store by broad civil society participation in implementing the Action Programme and in preparing the first Climate Action Plan of the Action Programme s key policy measures will contribute between 62 and 78 million tonnes of CO 2 equivalents to closing that mitigation gap. Germany s 2015 Projection Report (the latest Projection Report) reaffirms this mitigation gap and therefore the necessity for ambitious and tightly focused implementation of the measures set out in the Action Programme in order to actually meet the 2020 target. Fundamentally, there is technical and economic potential for additional reductions in all sectors. The German government s Climate Action Programme 2020, which was adopted in 2014, aims to address that potential but it does not set any sector-specific targets. Implementation plans are already at an advanced stage for virtually all the measures adopted in the Climate Action Programme. Some measures have even been fully implemented. This climate action report gives a detailed account of implementation progress. To support implementation of the measures adopted and to identify further options for action, the German government established the National Climate Action Alliance (Aktionsbündnis Klimaschutz), which comprises representatives from all groups of society, with the Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB) as lead agency. The idea is for the action alliance to provide support in ensuring the target of reducing greenhouse gas emissions in Germany by at least 40 percent by 2020 will definitely be met. The action alliance has issued a statement on the draft of the German government s climate action report prepared by the BMUB and on progress in implementing the measures. Insights arising from this statement (available on the BMUB website at have been incorporated into the government s considerations. The process of broad dialogue and participation set out in the Action Programme with the aim of developing measures for inclusion in the Climate Action Plan 2050 has already begun with a kick-off conference and a first round of dialogue with all target groups involved (Länder, local authorities, interest groups/civil society, members of the public). The German government has made significant funds available from its Future Investments Programme for

10 10 Climate action report Introduction Climate change is one of the greatest challenges facing humankind. As a result of burning fossil fuels, the concentration of greenhouse gases in the atmosphere has risen sharply since industrialisation began and has caused the climate to change. We are already feeling the effects in the form of droughts, flooding, storms and heatwaves throughout the world. The German government is therefore advocating for the rise in the average global temperature to be limited to below 2 C above the pre-industrial level in order to minimise the effects of climate change as far as possible. This requires prompt action since delaying action on climate change now could restrict scope for action at a later date and rack up high additional costs. To address climate change, we need radical political, economic and technological change. Furthermore, 2015 is a decisive year for climate action. At the end of this year, a new global climate deal, which is in line with the internationally agreed two-degree limit, is set to be agreed at the international climate change conference in Paris. Achieving this will require severe cuts in greenhouse gas emissions, accompanied by a decarbonisation of the global economy over the course of the century. This was reaffirmed by the heads of state and government of the seven largest industrialised nations meeting under Germany s presidency in July. The aim is to cut greenhouse gas emissions in Germany and the European Union by percent below 1990 levels by the middle of the century. In adopting its Climate Action Programme 2020, the German government also passed a package of measures designed to achieve its interim target of cutting greenhouse gas emissions by at least 40 percent by 2020 compared with In doing this, Germany is making an ambitious contribution in the international context. The starting point for drawing up the Action Programme was that the German government identified a climate change mitigation gap for 2020 of between five and eight percentage points measured against the national climate target. Germany s 2015 Projection Report (the latest available) reaffirms this mitigation gap and therefore the

11 Climate action report necessity for ambitious and tightly focused implementation of the measures set out in the Action Programme in order to actually meet the existing 2020 target. In total, implementation of the Action Programme s key policy measures will contribute between 62 and 78 million tonnes of CO 2 equivalents to closing the mitigation gap. This presupposes that the measures adopted by the German government as part of the Climate Action Programme are implemented and that the quantified greenhouse gas reductions are achieved. The government will therefore monitor implementation of the Climate Action Programme in an ongoing process up to To that end, starting in 2015, it will produce an annual climate action report setting out the latest emission trends in the various areas for action, implementation status and a prediction of the reduction effects that can be expected by This report will first of all present an overview of the existing reporting obligations in the European and international context. This will be followed by an account of current emission trends in Germany and anticipated emission trends up to 2020 taking into account the progress of measures before the Action Programme was adopted, both in overall terms and broken down by individual sector. incorporated into the German government s considerations. Whereas the Climate Action Programme aims to meet the interim target for 2020, it is important not to lose sight of the long-term target for To this end, a process of dialogue and participation on the Climate Action Plan 2050 began in summer 2015, involving the Länder, local authorities, the private sector, interest groups and civil society. It is described in this climate action report. Statements on the effects of climate change in Germany and on measures to adapt to them are not the subject of this climate action report. The German government reports on this in its progress reports on the German Strategy for Adaptation to Climate Change. The next progress report is scheduled for the end of Furthermore, the German government has commissioned the Federal Ministry for Economic Affairs and Energy (BMWi) to carry out a monitoring process to review implementation of the Energy Concept and its targets, so that policy adjustments can be made if necessary. This is followed by a description of the implementation status of the individual measures within the Climate Action Programme 2020 (editorial deadline in mid- October 2015). An updated estimate of the reduction effects is planned for the next climate action report (2016). To support implementation of the measures adopted and to identify further options for action, the German government has involved the National Climate Action Alliance (Aktionsbündnis Klimaschutz), comprising representatives from all groups of society with the BMUB as lead agency. The idea is that the action alliance will provide support in ensuring the target of reducing greenhouse gas emissions in Germany by at least 40 percent by 2020 is definitely met. The action alliance has issued a statement on the draft of the German government s climate action report prepared by the BMUB and on progress in implementing the measures. Insights from this statement (available on BMUB s website at were

12 12 Climate action report Cross-cutting climate action reporting The Federal Republic of Germany is obliged to report at regular intervals on past emission trends and to submit an estimate of future trends. This ensures an ongoing, transparent review on the way to achieving the goal of reducing greenhouse gases and also identifies where there might be a need to adjust course. Reporting activities for 2013 the first year of the second commitment period of the Kyoto Protocol have incorporated comprehensive changes in the way greenhouse gas emissions are calculated and reported in compliance with the resolutions of the Conferences of the Parties to the UNFCCC (United Nation Framework Convention on Climate Change). Primarily, the changes result from the obligation to use the 2006 IPCC (Intergovernmental Panel on Climate Change) Guidelines on Greenhouse Gas Inventories. They consist not only of a revision of the methods that must be used to calculate greenhouse gas emissions but also include greenhouse gases that were not previously part of the inventory, along with additional source groups, so that the spectrum of the emissions to be reported has been expanded. To determine total emissions of all greenhouse gases, conversion factors known as Greenhouse Warming Potentials (GWPs) or global warming potentials are used. They are a measure of how much a given mass of greenhouse gas is estimated to contribute to global warming over a 100-year timescale. Each gas is compared to the same mass of CO 2 (with CO 2 having a GWP value of 1). Previous reports used the GWP values of the 2 nd IPCC Assessment Report published in 1995 (SAR). For the sake of standardisation, the calculations in this report use for the first time the GWP values given in the 4 th IPCC Assessment Report (4AR). The table below shows examples taken from these two data sets for comparison.

13 Climate action report Table 1: Overview of some of the GWPs used in the 2 nd and 4 th IPCC Assessment Reports (SAR and 4AR respectively) Greenhouse gas SAR (1995) 4AR (2007) Carbon dioxide (CO 2 ) 1 1 Methane (CH 4 ) Nitrous oxide (N 2 O) Nitrogen trifluoride (NF 3 ) 17,200 Sulphur hexafluoride (SF 6 ) 23,900 22,800 Hydrofluorocarbons HFC-23 Hydrofluorocarbons HFC-32 Source: GWPs, SAR und 4AR 11,700 14, As a result of the combination of all these effects, the emissions reported for 1990 to 2012 differ from those reported under the old regulations. This means that a direct comparison of the current information such as that presented in this climate action report with that in older reports or presentations is possible to only a limited extent. 3.1 Climate action reporting description of the reporting obligations Evaluating progress in reducing greenhouse gas emissions requires comprehensive and continual reporting. International agreements, such as the United Nations Framework Convention on Climate Change and the Kyoto Protocol, require the industrialised countries to report their national greenhouse gas emissions in a way that is transparent, complete, consistent and comparable. This reporting forms the basis for setting reduction commitments and also makes it possible to produce robust comparisons of the efforts being made by the Parties to the Convention. In addition to information about greenhouse gas emissions, details of climate change targets and strategies, climate change mitigation and adaptation measures, education and research and financial and technical development cooperation also plays an important role. The key reports at international and European level are: The National Inventory Report on greenhouse gas emissions throughout Germany since 1990 complies with the obligation to prepare and publish national greenhouse gas inventories under the United Nations Framework Convention on Climate Change and the Kyoto Protocol (annual). The Projection Report models in different scenarios the possible emission-reducing effect of climate change mitigation measures in the next 20 years; it is a reporting obligation for member states of the European Union (every two years). The National Communication to the United Nations Framework Convention on Climate Change provides comprehensive reporting on national circumstances, greenhouse gas emissions, climate change mitigation measures and projections, and also adaptation to climate change, research and financial and technical development cooperation (every four years). The Biennial Report updates at shorter intervals the main information in the National Communications, focusing on reduction effects and financing (every two years). These reporting obligations have been constantly developed over the last 20 years both at European and international level and are also gaining increasing importance for developing countries and emerging economies. The scientific and methodological basis for greenhouse gas reporting is also constantly updated on the basis of recommendations by the Intergovernmental Panel on Climate Change.

14 14 Climate action report 2015 greenhouse gases that dominate in terms of quantity (CO 2, N 2 O and CH 4 ) were reduced considerably, with the most significant reduction being in methane emissions. The main reasons for the trends since 1990 are: A change from the use of solid fuels to lower-emission liquid and gaseous fuels Increased use of renewable energy sources and the associated replacement of fossil fuels More efficient plants and facilities Changes in livestock raising conditions and reduction of livestock populations Compliance with statutory provisions on waste management The global economic crisis, which began to impact on Germany at the end of 2008, also had a major influence on emissions. Some of the annual variations were caused by economic fluctuations. 3.2 Emission trends National Inventory Report on Greenhouse Gas Emissions Germany was able to achieve a marked 24.0-percent reduction in greenhouse gas emissions between 1990 and It thus more than fulfilled its pledges from the first commitment period of the Kyoto Protocol to reduce greenhouse gas emissions by an average of 21 percent from 1990 levels between 2008 and Emissions the next year 2013 were up 2.4 percent on The cold winter in particular caused more carbon dioxide emissions from households and from the commerce/trade/ services sector. According to initial estimates by the Federal Environment Agency, emissions in 2014 were down once more on the previous year by 4.3 percent or approximately 41 million tonnes of CO 2 equivalents. This equates to a decrease of roughly 27 percent since In addition to weather-related influences (mild winter), lower emissions in the electricity industry can be cited as one of the reasons for this. The individual greenhouse gases contributed to these trends to differing degrees. Emissions of the direct As far as individual greenhouse gases are concerned, the release of carbon dioxide (CO 2 ) the vast majority of which was caused by stationary and mobile combustion processes dominates the overall picture regarding aggregate greenhouse gas emissions. Due to the above-average decrease in emissions of the other greenhouse gases, carbon dioxide s share in overall greenhouse gas emissions has risen by four percentage points since All other greenhouse gases together are responsible for only about one tenth of total greenhouse gas emissions. Methane (CH 4 ) emissions, most of which are caused by livestock raising, fuel distribution and landfills, accounted for a 6.2-percent share. Most emissions of nitrous oxide (N 2 O) came from agriculture, industrial processes, and the combustion of fossil fuels, contributing 4.0 percent to greenhouse gas emissions. Fluorinated greenhouse gases (known as F-gases) contributed about 1.5 percent to total emissions; NF 3, a greenhouse gas which has only recently been included in the reporting, contributes a negligible share of percent. The distribution of greenhouse gas emissions is typical for a highly industrialized country.

15 Climate action report Figure 1: Emission trends in Germany since 1990, by greenhouse gas * 1,400 Million tonnes of CO 2 equivalents 1,200 1, ,250 1,203 1,144 1,140 1,153 1,1251,122 1,1061,080 1,061 1,047 1,0401,0371,019 1, ,002 Kyoto budget: Year 2012 Estimate for 2014 CO 2 ** CH 4 N 2 O HFC PFC SF 6 NF 3 Kyoto budget * CO 2 emissions from and fixation in soil are reported under land-use changes and forestry. ** excluding CO 2 from land use, land-use change and forestry (LULUCF) Source: German Environment Agency: National Greenhouse Gas Inventory 2015, v 1.7 With regard to the individual groups of sources and sinks listed in the greenhouse gas inventories, energyrelated emissions dominate very clearly. Over time, these emissions have steadily decreased in absolute terms. The deviations from the trend are predominantly temperature-related. Differences in temperature trends especially in winter influence heating behaviour and thus the energy consumed to produce space heating and have a major impact on the annual trend in energy-related CO 2 emissions. A closer look at the individual components reaffirms this trend in its varying degrees. Emissions since the base year (1995 for F-gases and NF 3, otherwise 1990) of the greenhouse gases that dominate in terms of quantity were as follows: a 20.0-percent decrease for carbon dioxide (CO 2 ), 50.3-percent decrease for methane (CH 4 ) and 42.1-percent decrease for nitrous oxide (N 2 O). By contrast, the trend for the F-gases is not quite so uniform. As a result of the introduction of new technologies and the use of these substances as substitutes for ozone-depleting refrigerants, emissions of SF 6 fell by 49.6 percent and of Perlfluorcarbons (PFCs) by 87.7 percent compared with the 1995 base year, whereas emissions of HFCs (Hydrofluorocarbon) rose by 28.6 percent. Emissions of NF 3, a greenhouse gas which is included in the report for the first time, have risen very markedly since 1995 by percent but their contribution to overall emissions is extremely small.

16 16 Climate action report 2015 Figure 2: Trends in greenhouse gas emissions in Germany between 1990 and 2013 and an estimate for 2014, by source group* 1,400 Million tonnes of CO 2 equivalents 1,200 1, ,250 1,2031,153 1,125 1,1221,140 1,105 1,144 1,080 1,0471,046 1,061 1,040 1,037 1,019 1, Year Energy Industry processes Agriculture LULUCF** Waste and sewage Estimate for 2014 * CO 2 emissions from and fixation in soils are reported under land use change and forestry. ** excluding CO 2 from LULUCF/level of uncertainty-level (2013): 6.1 percent Source: German Environment Agency: National Greenhouse Gas Inventory 2015, v Projected emission trends The member states of the European Union are obliged to estimate every two years how their greenhouse gas emissions are likely to develop in the next 20 years or so. For Germany s 2015 Projection Report, a research consortium developed scenarios for the trends in greenhouse gas emissions in Germany from 2005 to The German government does not fully endorse the results of these scenarios. It will, however, take the research findings into account in its future considerations. Below is a description of the with-measures scenario (WMS 1 ), which comprises all new climate and energy measures launched by 31 August 2014 and existing ones that have been substantially modified by the 1 German Projection Report 2015, as required by Regulation 25/2013/EU. Online at: Report_2015_final.pdf

17 Climate action report same date 2. Figure 3 and table 2 provide an overview of emission trends under the with-measures scenario, broken down by source category. For total greenhouse gas emissions (not counting land use, land-use change and forestry), the with-measures scenario shows a reduction of 156 million tonnes of CO 2 equivalents or 16 percent for the period 2005 to By 2030, it shows a reduction since 2005 of about 282 million tonnes of CO 2 equivalents or 28 percent and by million tonnes of CO 2 equivalents or 35 percent. By comparison with 1990, this equates to a reduction of 33 percent or 408 million tonnes of CO 2 equivalents by 2020, 43 percent or 532 million tonnes of CO 2 equivalents by 2030, and 48 percent or 597 million tonnes of CO 2 equivalents by If the sensitivities analysed in the report are taken into consideration, the possible corridor for emissions reduction in 2020 would be between 31.9 percent (higher population growth accompanied by higher fuel prices) and 35.0 percent (lower economic growth accompanied by a lower electricity export balance) lower than However, it must be taken into account that the emission trends described do not include developments in international aviation (and to a lesser extent deep-sea shipping). The German Projection Report indicates that, based on the current measures, in particular the very dynamic trend in international aviation would cause corresponding greenhouse gas emissions from 2005 to 2020 to increase from 31.4 million tonnes of CO 2 equivalents to 39 million tonnes of CO 2 equivalents, which equates to 24 percent growth. According to the Projection Report, international maritime shipping accounts for 9.2 million tonnes of these 39 million tonnes of CO 2 equivalents in 2020 and international aviation for 29.8 million tonnes. Energy-related greenhouse gas emissions comprise CO 2 emissions from combustion of fossil fuels in the energy sector, the final consumption sectors, industry, the commerce/trade/services sector, households, transport and fugitive CH 4 emissions from the coal mining, oil and gas industries. Greenhouse gas emissions from combustion (energy sector, industry, the commerce/trade/services sector, households and transport) are projected to fall by 120 million tonnes of CO 2 equivalents between 2005 and 2020 (a reduction of roughly 15 percent). About 42 percent of this emissions reduction would come 2 The scenario that contains not only the measures in place before the Climate Action Programme 2020 but also those that were adopted as part of the Climate Action Programme 2020 has not been described because the results were not available at the time of going to press (15 October 2015). 3 Differences in emission figures in Section 3.2 for 1990 to 2014 are due to different methods having been used: to calculate the reduction effect of the instruments under the different scenarios, the Projection Report uses the methods set out in the Revised IPCC Guidelines 1996 and the global warming potentials (GWP) given in the IPCC s Second Assessment Report (SAR). The greenhouse gas inventories from 2015 onwards (for with an estimate for 2014) comply with the statutory requirement to use the methods set out in the 2006 IPCC Guidelines and the GWP values given in the 4 th IPCC Assessment Report. The emission figures in the scenarios depicted here are therefore no longer fully comparable with current inventories.

18 18 Climate action report 2015 from the final consumption sectors. Whereas significant reductions are predicted in the household, commerce/trade/services and transport sectors (together about 95 million tonnes of CO 2 equivalents), only minimal changes in emissions levels from industry are predicted (a decrease of approximately 1 million tonnes of CO 2 equivalents). The overall contribution from the energy industry to reducing greenhouse gas emissions from combustion (not counting industrial power plants) is projected to be about 58 percent for the entire period. In total, a reduction in energy-related greenhouse gas emissions (combustion-related and fugitive emissions from the energy sectors) of 142 million tonnes of CO 2 equivalents or 16 percent is projected for the period from 2005 to Trends in CO 2 emissions from steel and cement production and N 2 O emissions from the chemical industry are the major influence on trends in greenhouse gas emissions from industrial processes in Germany. As well as process-related CO 2 and N 2 O emissions, HFC, PFC and SF 6 emissions from industrial processes and use of products are also an important factor. In the with-measures scenario, emission reductions here in 2020 totalled 14 million tonnes of CO 2 equivalents, which is 17 percent down on Figure 3: Trends in total greenhouse gas emissions by source category 1990 to 2035* 1,400 Million tonnes of CO 2 equivalents 1,200 1, % -17% -21% -24% -28% -33% -37% -43% -48% Year Energy industry Housholds Transport Trade, commerce, services Industry Agriculture Other emissions * not counting international fuel bunkers Source: 1990 to 2010: actual emissions. From 2015 onwards: projections 525/2013/EU. online:

19 Climate action report Table 2: Trends in total greenhouse gases by source category 2005 to Million tonnes CO 2 equivalents Energy industry Industry Transport Households Trade/commerce/service Agriculture Other Total compared with % -8.9% -15.7% -20.9% -28.5% -35.0% compared with % -25.1% -27.7% -33.1% -37.2% -43.2% -48.4% compared with basisyear * -20.9% -25.3% -27.9% -33.3% -37.4% -43.4% -48.5% * The base year is 1990 for carbon dioxide. methane and nitrous oxide and 1995 for HFCs, PFCs and sulphur hexafluoride. The calculations of base year emissions take this into account Source: : actual emissions. From 2015 onwards: projections 525/2013/EU. online:

20 20 Climate action report Fields of action and emission trends sectoral analysis The Climate Action Programme 2020 allocates emissions to sectors on the basis of the source principle, i.e. where they are generated. For example, emissions resulting from electricity consumption in private households are caused by fossil fuels being burned in a power station and are therefore allocated to the energy industry. According to initial estimates by the Federal Environment Agency, Germany s total emissions fell from 1,250 to 912 million tonnes of CO 2 equivalents between 1990 and The breakdown by sector for 2014 shows that, at just under 39 percent, the energy industry was the highest emitter of greenhouse gases. The second highest was industry at 21 percent, followed by transport at 18 percent. By comparison, households at 10 percent, agriculture at 8 percent and the commerce/ trade/services sector at 4 percent played a minor role. Other emissions totalling 1 percent were mainly accounted for by the waste management sector.

21 Climate action report Figure 4: Trends in greenhouse gas emissions in Germany 1990 to 2013 and an estimate for 2014 by sector as defined in the Climate Action Programme ,400 Million tonnes of CO 2 equivalents 1,200 1, , ,061 1,122 1, ,037 1, , , Estimate 2020 Year for 2014 Target Energ industry Housholds Transport Trade, commerce, services Industry Agriculture Other emissions Kyoto budget * not counting international fuel bunkers Source: German Projection Report 2015, as required by Regulation 525/2013/EU online: to 2010: actual emissions. From 2015: projections Table 3: A comparison of trends in total greenhouse gas emissions in Germany Sector Emissions in 1990 in million tonnes of CO 2 equivalent Emissions in 2013 in million tonnes of CO 2 equivalent Trend from 1990 to 2013 as a percentage Emissions in 2014 in million tonnes of CO 2 equivalent [estimate] Absolute [%] Absolute [%] Trend from 1990 to 2014 as a percentage "With measures" projection for 2020 (not including measures under the Action Programme) With measures projection for Change from 1990 Energy industry % -19% % -24% % Industry % -34% % -34% % Transport % -3% % +1% % Households % -21% 88 10% -33% 77-41% Trade/commerce/service % -46% 35 4% -54% 40-48% Agriculture % -20% 70 8% -21% 66-26% Other % -65% 13 1% -67% 9-76% Total 1, % -24% % -27% % Source: German Projection Report 2015 and authors' own presentation

22 22 Climate action report Energy industry The energy industry includes all the emissions produced by burning fossil fuels in power stations to supply electricity and heat to the public grids. It therefore also comprises emissions arising from electricity consumption by private households and by the transport sector, industry (except self-generated electricity and heat) and the commerce/trade/services sector. At 377 million tonnes of CO 2 equivalents and a 40 percent share in total emissions, the energy industry was the highest emitter of greenhouse gases in This percentage had remained constant for several years. Whereas CH 4 emissions decreased as a result of increased energy recovery from coal mine gas, CO 2 emissions, which account for about 98 percent of total GHG emissions in the energy industry, stagnated. Initial estimates indicate that at 355 million tonnes of CO 2 equivalents the energy industry s emissions in 2014 were just under 6 percent down on The main reason for that is that less coal was used. However, since 2014 was an unusually mild year, it is not possible to assume that this trend is the result of measures put in place. According to the German 2015 Projection Report, we can assume that emissions in the energy sector will fall to 314 million tonnes of CO 2 equivalents by 2020 as a result of measures in place as of 31 August Industry The industry category includes emissions from combustion processes and from electricity self-generation in the manufacturing industry and emissions from commercial and industrial processes (production and product use 4 ). Based on the principle of categorisation by source, emissions caused by electricity from external suppliers are included in the energy industry category. As in previous years, industry was after the energy sector the highest emitter. In 2013, emissions were almost three percent up on 2012, rising to 188 million tonnes of CO 2 equivalents. Whereas total emissions across all sectors decreased in 2014, there was virtually no change in the absolute values for industry. As a result, its share in total emissions has risen slightly to 21 percent. However, in the past especially in the 1990s industry s emissions did decline so that their greenhouse gas emissions in 2014 were 89 million tonnes of CO 2 equivalents or 34 percent lower than in According to the German Projection Report, it can be assumed that, as a result of climate change mitigation measures in place as August 2014, emissions from The key climate change mitigation measures in this sector are emissions trading, expansion of renewable energy and combined heat and power generation, and the gradual reduction of electricity production in lignite-fired power stations on the supply side, combined with all the measures that have been put in place to reduce the demand for electricity, heat and cooling from power stations in the public energy supply system (increasing energy efficiency). The Action Programme s measures in the electricity sector, the increased use of combined heat and power generation, strengthening of emissions trading, and ambitious implementation of the National Action Plan on Energy Efficiency and the European Union (EU) Energy Efficiency Directive all play a key role in the energy industry s additional contributions to reducing greenhouse gas emissions. 4 Including fluorinated greenhouse gases, known as F-gases.

23 Climate action report industry will fall to 182 million tonnes of CO 2 equivalents. There is still considerable technical and economic potential for reduction. The most important climate change mitigation measures in this sector to date are emissions trading, incentives to invest in higher energy productivity, increased use of renewable energy and regulations for reducing fluorinated greenhouse gases (F-gases). Here too as in the energy industry strengthening the emissions trading scheme and ambitious implementation of the National Action Plan on Energy Efficiency (NAPE) and the EU Energy Efficiency Directive (EED) will play a key role. 4.3 Commerce/trade/services This sector includes all emissions from combustion processes in the commerce/trade/services industry (also known as the small-scale consumer sector), most of which are caused by heat supply 5. Consequently, the emission trends for this sector are closely weatherrelated. The emissions from electrical applications such as lighting and IT are accounted for in the energy industry. The commerce/trade/services sector accounted for only a small percentage of Germany s total emissions in million tonnes of CO 2 equivalents or four percent. According to initial estimates, emissions fell further from 2013 to 2014 to 35 million tonnes of CO 2 equivalents; a significant decrease, which was, however, predominantly weather-related. This meant that from 1990 to 2014 the sector made a 57-percent contribution to cutting emissions, which was well above average. To date, significant emissions reductions have been achieved primarily as a result of imposing energy-efficiency requirements on buildings, processes and products. According to the German Projection Report, no further decrease in emissions can be expected as a result of existing measures but not taking into account those listed in the Action Programme. Here too there is still considerable technical and economic potential for reduction. The building stock in this sector (i.e. non-residential buildings) is regarded as an obvious area to focus on. There is also additional potential for saving electricity and for using renewable energy, which would make a contribution to the desired reduction of emissions in the energy industry. The measures under the National Action Plan on Energy Efficiency and the climate-friendly building and housing strategy play an important role in the commerce/trade/services sector. 4.4 Households In the household sector too direct emissions (i.e. not counting electricity and district heating) are caused almost exclusively by the production of space heating and hot water in residential buildings. Emission trends are therefore affected by very marked weather-related fluctuations. From 1990 to 2013, direct emissions in the household sector fell by 21 percent to 104 million tonnes of CO 2 equivalents. As a result of weather conditions, there was an even greater reduction in 2014, with emissions totalling 88 million tonnes of CO 2 equivalents, which is 33 percent lower than the 1990 level. This progress is the result of energy-efficient refurbishment of existing buildings, energy-efficient new buildings, and changes to heating systems. Key instruments are regulations and subsidy programmes such as the low-carbon building refurbishment programme (grant programmes to promote energy-efficiency in new builds and refurbishment of the existing building stock run by the Kreditanstalt für Wiederaufbau [KfW]) and the market incentive programme to promote the use of renewable energy in the heat market. According to Germany s 2015 Projection Report, we can assume that, as a result of measures in place as at 31 August 2014, emissions in this sector will continue to fall to approximately 77 million tonnes of CO 2 equivalents by The Action Programme s additional measures could enable further reductions to be achieved by These measures include directing funding at building refurbishment schemes that have a high standard of energy saving, continuing to increase the use of renewable energy and harnessing potential in the medium and long term by implementing neighbourhood concepts in energy-efficient redevelopment 5 Fuel for space heating, cooking and hot water.

24 24 Climate action report 2015 programmes and in the public utilities sector 6. Furthermore, there is also scope for electricity-saving measures, which would support emissions reduction in the energy industry. 4.5 Transport Emissions in the transport sector are caused by fuel combustion in road and rail transport and domestic shipping and aviation. The transport sector does not include the use of fuel for agricultural purposes 7 nor are GHG emissions from international aviation and shipping, for which continued growth is forecast, accounted for in the transport sector. The main factors influencing greenhouse gas emissions in this sector are traffic volume, energy consumption and fuels used. At 160 million tonnes of CO 2 equivalents, domestic transport s share in Germany s GHG emissions in 1990 was 13 percent. Between 1990 and 1999, transport emissions rose to a peak of 185 million tonnes of CO 2 equivalents. After a phase of decline, they have been on the increase again since 2010 and in 2014 slightly exceeded the 1990 level at 164 million tonnes of CO 2 equivalents. The sector s share in total emissions has increased from 13 to 18 percent. According to the German Projection Report, emissions in the transport sector (not counting emissions from international transport) will fall to 144 million tonnes of CO 2 equivalents by 2020 as a result of measures in place as at 31 August The use of newer, more efficient technologies in the transport sector electromobility based on renewable energy and alternative fuels and modal shifts in individual mobility to public transport, bicycle and pedestrian transport and in the freight sector to rail transport. This is where the focus of measures under the Action Programme lies. 4.6 Agriculture Emissions in the agriculture sector include methane and nitrous oxide emissions from animal husbandry and fertilizer management and carbon dioxide emissions from agricultural fuel use. From 1990 to 2013, greenhouse gas emissions in the agriculture sector fell by 19 percent from 88 to 71 million tonnes of CO 2 equivalents. In 2014, they totalled 70 million tonnes of CO 2 equivalents, according to initial estimates. This means their share in total emissions rose negligibly from seven to eight percent. According to the German Projection Report, emissions in this sector will stabilise at 66 million tonnes of CO 2 equivalents by 2020 as a result of measures in place as at 31 August The reductions achieved thus far in the agriculture sector are primarily due to the environmental standards included in the EU Common Agricultural Policy, better fertiliser management and appropriate stocking rates for livestock. The Action Programme looks at other reduction options including, for example, improving nitrogen use efficiency and expanding organic farming. 6 E.g. heat recovery from grey water. 7 Fuel used in agriculture is accounted for in the agriculture sector.

25 Climate action report maintain the carbon sink function. After forests effect as a sink for greenhouse gases decreased from around 75 million tonnes of CO 2 equivalents a year in 1990 to roughly 39 million tonnes of CO 2 equivalents on average between 2002 and 2007, it has now according to the latest federal forest inventory (BWI3) increased once more to around 57 million tonnes of CO 2 equivalents per year. The carbon storage effect of wood products over the last five years, which has been included in the calculations since 2015, amounted on average to a further 3 million tonnes of CO 2 equivalents each year. Furthermore, wood can be used as a substitute both for products whose manufacture uses more energy and for fossil fuels. These substitution effects have an indirect impact by reducing greenhouse gas emissions in the energy industry and industry source groups, but it is not directly apparent that this contribution is made by the forestry/timber industry. 4.7 Land use, land use change and forestry Emissions from and removals by agricultural soils (caused by ploughing up grassland, for example, or rewetting peatlands and fens) and emissions and removals through carbon storage in forestry have to date not been included in assessments of whether climate targets have been met. In the medium term, the potential for additional climate action in this sector should be explored. Accounting for emissions in the land use, land use change and forestry sector (LULUCF) is more difficult in terms of methodology than in other sectors and there is a lack of adequate databases. Due to the fact that forests act as a sink, the sector is on balance still overall a sink when all emissions and sequestration are accounted for. Since other land uses also cause emissions, any balance sheet drawn up should analyse greenhouse gases by specific land use. Using peatland for arable and grassland farming alone causes emissions of 30 million tonnes of CO 2 equivalents, which equates to about four percent of Germany s total greenhouse gas emissions. Conserving permanent grassland and protecting peatland can contribute to climate change mitigation. Similarly, sustainable forestry in conjunction with the carbon storage effect of wood products can help to 4.8 Other emissions This sector primarily records methane and nitrous oxide emissions from closed-cycle and waste management and the water sector. Seventy-five percent of emissions in this sector come from gas emitted by waste landfills, 18 percent from wastewater treatment and seven percent from composting and bio-mechanical waste treatment. Since 1990, emissions in this sector have fallen by over two thirds from 45 million tonnes of CO 2 equivalents to 13 million tonnes of CO 2 equivalents. At 1 percent of total emissions, they currently make only a minor contribution to climate-relevant emissions in Germany. These reductions, which are way above average, result primarily from making it illegal to landfill organic degradable municipal waste and stepping up recycling rates. According to the German Projection Report, a further decline in emissions of nine million tonnes of CO 2 equivalents can be expected by 2020 as a result of measures in place as at 31 August The Action Programme addresses other potential, for example in the area of landfills and wastewater treatment. Other consumer-side measures designed to improve resource efficiency have an effect in other sectors, such as households, industry and the energy sector.

26 26 Climate action report Implementation of the Climate Action Programme s key policy measures This section describes the implementation status for all the Action Programme s measures on the date this climate action report was produced (editorial deadline: mid-october 2015). The order in which they are described largely follows the Climate Action Programme. The Action Programme also includes estimates of the reduction effects of its measures/components. An updated estimate of the reduction effects is planned for the next climate action report (2016). 5.1 Financing the measures set out in the Climate Action Programme 2020 The German government uses a tried and tested mix of instruments in its Climate Action Programme 2020: regulatory law, economic incentives, funding programmes and advice and information. A significant percentage of the measures in the Climate Action Programme 2020 that are based on funding programmes are funded from the government s Future Investments Programme. The funds available under the Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety s (BMUB) National Climate Initiative alone (NKI) for 2016 to 2018 will be increased by a further 450 million euros. BMUB s funds for the construction and urban development sector will also be increased by around 360 million euros and will be used for urban development projects, refurbishment of local authority facilities for sport, youth and culture or for model projects on sustainable housing for students and vocational trainees. In this way, a large proportion of the funds will be channelled into climate action and energy efficiency measures. A total of 1.19 billion euros will be made available from the Future Investments Programme for the period 2016 to 2018 to fund the implementation of energy

27 Climate action report efficiency measures (National Action Plan on Energy Efficiency, NAPE). In addition to the measures under the National Action Plan on Energy Efficiency, there are others to increase energy efficiency that are based on decisions on key parameters for successful implementation of Germany s energy transition taken by the coalition committee on 1 July The aim is to achieve cuts of 5.5 million tonnes of CO 2 equivalents by 2020 through energy efficiency measures in the buildings sector, local authorities, industry and rail transport. To achieve this goal, up to 5.8 billion euros more will go to the Special Energy and Climate Fund to fund the additional measures up to In the transport sector too, funds from the Future Investments Programme will be used for measures under the Climate Action Programme. The funds for the National Action Plan on Energy Efficiency measures under the current budget total almost 1.19 billion euros, another 0.81 billion euros have been approved under the Future Investments Programme, plus funds have been earmarked for the transport sector and to implement the efficiency measures envisaged in the package of measures for the electricity industry (compare Section 5.4.2). With this, the German government is sending out an unequivocal message that it intends to step up climate action and underlining the importance that climate change mitigation has for Germany in terms of sustainable growth, investment and jobs. Overall the measures are being implemented within the budget and financial planning approaches of each of the government departments (including permanent and temporary posts) under the proviso that the necessary funds are available in the budget. 5.2 Measures within the Climate Action Programme 2020 The package put forward by the Climate Action Programme 2020 comprises over 100 individual measures from all sectors of the economy, which are designed to achieve the government s goal of cutting greenhouse gas emissions by 40 percent by 2020 compared with 1990 levels. The current implementation status of the various measures is described below, introduced by a brief explanation of the measure in question, along with details of how implementation is scheduled to continue. The order in which the measures are listed basically corresponds to the structural categorisation of the measures, as set out in the Climate Action Programme Emissions trading, European and international climate policy Climate change is a transnational problem that can only be tackled through close collaboration at European and international level. Germany s climate policy is therefore embedded in European and international agreements and legal obligations and constantly interacts with them. Germany has always been a reliable partner in its external relations and acts as a forerunner with its ambitious climate action, injecting new ideas into European and international climate policy International cooperation The 21st Conference of the Parties to the UNFCCC will be held in Paris in December 2015, with the aim of adopting a new post-2020 climate treaty. Germany and the EU are seeking to achieve a comprehensive, ambitious, modern and fair climate treaty that will keep the global temperature rise below two degrees Celsius above pre-industrial levels. The aim is for all countries to sign up to this, setting ambitious climate change targets and a long-term framework for low-carbon, climate-resilient development. The important thing here is that a flexible ratchet mechanism will make it possible to increase the level of ambition, overcoming the split into industrialized and developing countries and helping to ensure that sustainable climate policy and measures to achieve international development goals are mutually beneficial. At the same time, the aim is for the varying responsibilities and capacities of different countries to be taken into consideration in the light of the different levels of development but also in the context of changes that have occurred since 1992 and future developments. Countries in need that are endangered by climate change will receive support to take action to mitigate and adapt to climate change and develop better ways of dealing with risk of damage and loss caused by climate change. Verifiable action on climate change is a central element of the agreement.

28 28 Climate action report 2015 This year, the German government has paved the way for the goals cited above through its constant work in different forums and on different levels and has thus made a crucial contribution to preparations for the Paris conference. Germany has succeeding in injecting important momentum into the process, in particular in organising the VI Petersberg Climate Dialogue and also during its presidency of the G7. During the Petersberg Climate Dialogue, held in Berlin from 17 to 19 May 2015, 36 countries from all over the world discussed possible approaches for the international climate negotiations. The Petersberg Climate Dialogue has illustrated that by working together it will be possible for countries to adopt an ambitious and lasting climate agreement at the end of the year. The global political will to do this is stronger than ever before. The German government was able to further reinforce this positive momentum in particular during its presidency of the G7 and during the Elmau summit (7 8 June 2015). In the summit s final declaration, the G7 stressed for the first time the necessity to decarbonise the global economy over the course of this century, thus sending out a clear signal that developing and implementing long-term national low-carbon and climate-resilient strategies is the path that all countries must follow. To this end, it is essential that the international community reduces greenhouse gas emissions by 2050 in line with the upper end of the IPCC recommendation, i.e. by percent compared with 2010 levels. The G7 will transform its energy industries by 2050 to achieve this. Bilateral international relations were also used as an opportunity to hold intensive talks on climate action. For example, during consultations between their governments, Germany and Brazil adopted a joint climate declaration in which Brazil an important partner country and Latin America s leading economic power subscribed to the decarbonisation goal and thus illustrated once more the global importance of this goal. At the third Indo-German government consultations, a Joint Statement on Climate Change and Energy Technology Cooperation was adopted and an Indo-German Climate and Renewables Alliance agreed. The German government will make every effort to build on these positive signals and ensure the Paris climate negotiations reach a successful conclusion, so that the conference sends a clear message that the governments of all nations have decided to follow a lowcarbon, climate-friendly and climate-resilient development path and will adopt and implement national and international regulations accordingly. Germany also continues to support developing countries and emerging economies in putting their development on a low-carbon basis and in particular supports the poorest countries that are most severely affected by climate change in strengthening their resilience to the impact of climate change.

29 Climate action report Cooperation within the EU Climate action is one of the European Union s (EU) key policy areas. The EU is well on the way to surpassing its current target of cutting greenhouse gas emissions by 20 percent by 2020 compared with 1990 levels. In October 2014, the EU heads of state and government adopted a new target to succeed the 2020 target: to cut greenhouse gas emissions within the EU by at least 40 percent below 1990 levels by This target is part of a cost-efficient reduction path that ultimately leads to the EU s long-term objective of reducing climatedamaging gases by percent below 1990 levels by Following the same approach as for the 2020 target, the plan is to meet the 2030 climate target by a combination of the EU emissions trading scheme, which primarily applies to industry and the energy industry, and binding national targets for the sectors not covered by the emissions trading scheme in particular transport, buildings, and agriculture. In addition to the climate target, the EU s 2030 climate and energy framework s other targets are to boost the share of renewables to at least 27 percent of final energy consumption and increase energy efficiency to use at least 27 percent less primary energy, with the option to raise that to 30 percent. This is in line with the structure of the 2020 climate and energy package, which also contains targets for renewables (20 percent) and energy efficiency (20 percent). On 6 March 2015, the EU adopted its 2030 climate target as its contribution to the planned international climate agreement and submitted it to the UNFCCC secretariat. The EU Commission presented a legislative proposal to revise the EU Emissions Trading System (ETS) in line with the new 2030 climate target on 15 July 2015 (compare Section 5.3.3) and a proposal for the sectors not covered by the emissions trading scheme is scheduled to follow in the first half of Emissions trading Emissions trading is one of the core elements of European climate policy. It covers the majority of emissions from industry and the energy sector and was extended to aviation within Europe in However, it turned out that the economic and financial crisis combined with the inflow of international project credits produced huge surpluses, leading to very low CO 2 prices, which severely weakened the incentive effects of the Emissions Trading System. For that reason, even before the 2020 Climate Action Programme was passed, the EU adopted a backloading proposal, which involves taking 900 million emissions allowances out of the market by However, this is merely intended to be a first step towards a structural reform aimed at eliminating the accumulated surpluses in the medium term and making the Emissions Trading System more flexible to cope with greater demand fluctuations and therefore price fluctuations. To this end, the EU Commission proposed introducing a market stability reserve. The proposal was passed by the European Parliament and Council. The German government advocated at European level for the market stability reserve to come into force by 2017, but this did not prove possible. However, the German government views the compromise that has been achieved to introduce the market stability reserve by 2019 and also transfer the backloaded allowances, including any allowances remaining from the previous trading period, into the market stability reserve as an important step towards stabilising emissions trading as a European climate change instrument. Thus, when the market stability reserve is introduced in 2019, the accumulated surpluses will gradually be eliminated and the instrument will in future be able to respond more flexibly to strong fluctuations in demand. 5.4 Reducing the impact of electricity generation on the climate To achieve the necessary cuts in the energy industry, the Action Programme addresses not only the reform of emissions trading and expansion of renewable energy but also combined heat and power generation and other measures specifically directed at the electricity industry, along with measures to reduce electricity consumption (NAPE, see Section 5.5).

30 30 Climate action report Renewable energy Use of renewable energy in the electricity sector helped to avoid around 110 million tonnes of CO 2 equivalents in Wind energy, biomass and photovoltaics made the main contributions to mitigating climate change. The 2014 amendment to the Renewable Energy Sources Act (EEG 2014) set a framework within which to organise the expansion of renewables in the electricity sector in a way that can be planned and managed effectively. The aim is to adhere to the targeted expansion corridor of 40 to 45 percent of renewable energy in the electricity supply by 2025 and 55 to 60 percent in 2035 and to reach these targets as cost-effectively as possible. Thus, for example, despite an increase in the share of renewable electricity in gross electricity consumption to 27.4 percent or 161 TWh (Terawatthoures) in 2014, it was possible to stabilise the EEG surcharge at the same level as the previous years. The core element of the adjustment and an instrument in controlling volumes is the introduction of competitive tendering, which will be used in future to set feedin tariffs. In 2015, two rounds of tendering were successfully carried out as pilots in the field of ground-mounted photovoltaic systems. The first round of tendering closed on 15 April 2015, the second on 1 August The capacity auctioned (150 MW) was oversubscribed in both cases. The successful bid in the first round of pay-as-bid tendering was 9.17 ct/kwh. In the second round, it was 8.49 ct/kwh, which is significantly lower than the feed-in tariff of 8.93 ct/kwh which applied until 1 September In the second round of tendering the feed-in tariff was determined using a uniform pricing approach, under which the clearing price for all bidders is the value of the highest winning bid. The results of a further round of tendering are expected in December In 2017 at the latest, the level of financial subsidies is scheduled to be established through tendering procedures for other forms of renewable energy Other measures, especially in the electricity sector With an additional cut in emissions of 22 million tonnes of CO 2 equivalents, other measures, especially in the electricity sector, put in place in line with the National Action Plan on Energy Efficiency, are set to make the second largest contribution to achieving the 2020 targets. On 1 July 2015, the governing coalition published a paper outlining the key parameters for successful implementation of Germany s energy transition with corresponding proposals for a package of measures. They include the gradual decommissioning of lignitefired power station units with a total capacity of 2.7 GW. They will be gradually and provisionally shut down and will be on standby for four years, at the end of which they will be permanently decommissioned. The operators will receive compensation. This measure

31 Climate action report is set to produce savings of 12.5 million tonnes of CO 2 in It will be implemented under the Electricity Market Act and will therefore come into force in In addition to this, the power station operators have committed to achieving further savings of up to 1.5 million tonnes of CO 2 per year, starting in 2019, if necessary, i.e. if the measure alone does not meet the target of saving 12.5 million tonnes of CO 2. Efforts to promote CHP (Combined heat and power generation) are set to deliver a further 4 million tonnes of CO 2 savings (compare also Section 5.4.3). Support to enable CHP to achieve this target is due to be increased from 750 million euros (currently 500 million euros of that have already been spent) to 1.5 billion euros per calendar year which is 500 million euros more than originally proposed by the Federal Ministry for Economic Affairs and Energy in March A third of the funding (500 million euros) is to be made available to convert existing coal-based systems to natural gas and for moderate grants for projects to build new gas-fired plants. New coal-based systems and modernisation/ retrofitting are not eligible for funding. Highly efficient existing CHP plants that are gas-fired and belong to the public utilities (municipal utilities, energy providers) will receive further funding for a limited period of time to enable them to shore up their existing installed capacity. The remaining 5.5 million tonnes of CO 2 in cuts are to be delivered starting in 2016 through efficiency measures in the buildings sector, local authorities, industry and the rail transport sector. Financing of up to 1.16 billion euros per year up to 2020 is to be guaranteed from public funding channelled through the Special Energy and Climate Fund (EKF) Combined heat and power generation One of the mainstays in promoting energy efficiency in the energy conversion sector are systems that co-generate electricity and heat in highly efficient combined heat and power plants (CHP). The share of electricity generated in this way has risen steadily in recent years, not least as a result of consistent further development of the CHP Act. Even under the different conditions of an electricity market that is currently in a state of radical change, CHP will, as planned, make a considerable contribution to efficient provision of electricity and heat. This requires the CHP Act to be constantly further developed, especially in the light of the latest decisions on the electricity market and climate action. The Federal Ministry for Economic Affairs and Energy (BMWi) published key parameters on reforming the CHP Act (Amendment to the Combined Heat and Power Act) in March On 1 July 2015 (compare Section 5.4.2), the governing coalition agreed on additional points of this, including support for the replacement of existing coal-fired CHP plants with gas-fired ones (compare Section 5.4.2). This stabilises CHP s share but replacing a CO 2 -intensive fuel with a low-co 2 fuel also makes a significant contribution to reducing the energy industry s carbon dioxide emissions. The bill to amend the Combined Heat and Power Act was approved by the cabinet on 23 September 2015 and is now being discussed in parliament. It is hoped that the amendment to the CHP Act will enter into force on 1 January LED lead market initiative Use of LED (Light emitting diodes) lighting has steadily increased in recent years. Private households in particular are increasingly choosing this cost-effective and energy-efficient lighting option. However, information deficits and human resource bottlenecks in many local authorities mean that the significant potential of LEDs is still not being exploited in exterior and street lighting nor in interior lighting. The LED lead market initiative removes non-financial obstacles to implementation that impact on local authorities switching to LEDs in interior and exterior lighting. A project to monitor the LED lead market initiative focusing on local authorities has now been commissioned to analyse these obstacles and their impact on market developments with the aim of achieving a greater switch to LED lighting in the future. The findings of the project, which began in 2015, will gradually be incorporated into the National Climate Initiative.

32 32 Climate action report National Action Plan on Energy Efficiency Reducing the final energy demand and the primary energy required to meet that demand by introducing energy efficiency measures is crucial to cutting greenhouse gas emissions. The National Action Plan on Energy Efficiency (NAPE) aims to avoid between 25 and 30 million tonnes of CO 2 equivalents by In this sense, increasing energy efficiency is a key element in meeting the emission reduction targets. For that reason, NAPE and the measures it describes and has adopted constitute both an independent programme for achieving economic and energy policy goals especially those based on reducing energy demand and a significant contribution to the 2020 Climate Action Programme, which focuses on meeting the 2020 climate targets. Whereas the effects of NAPE on reducing energy consumption in Germany are being examined in a separate monitoring process, this climate action report is concerned with its effects on emission reduction. The National Action Plan on Energy Efficiency is divided into different areas: Energy saving as a business opportunity and way of generating returns on investment (compare Section 5.5.1) Individual responsibility for increasing energy efficiency (compare Section 5.5.2) Energy efficiency in the buildings sector (compare Section 5.6.2) Energy saving as a business opportunity and way of generating returns on investment Introducing a competitive tendering system for energy efficiency Competitive tendering procedures for efficiency measures offer an opportunity to activate the market to search for the most cost-effective ways of harnessing savings potential. They motivate the actors involved to identify for themselves electricity savings options that are also cost efficient. To date a funding guideline entitled Saving electricity as part of competitive tendering procedures: making use of the potential for electricity efficiency STEPup!" has been developed. Its aim is to promote the implementation of electricity efficiency measures with no restrictions regarding type of stakeholder, sector or technology. The key criterion that funding decisions are based on is the ratio of funding costs to electricity saving achieved (euros/kwh). Once a project partner has been selected and has been familiarised with the project, the first call for tenders will be issued in Promoting energy performance contracting indemnity bonds provided by guarantee banks for energy performance contract funding/ funding programme for energy-saving performance contracting Typical contracting risks are an obstacle to lending in the field of energy performance contracting. To address this, greater use is to be made of indemnity bonds offered by Länder-owned guarantee banks, with the counter-guarantees made by the federal and Land governments being adapted accordingly. A number of expert workshops will be held on this topic in On 18 September 2015, the joint federal/länder committee on indemnities and guarantees decided to go along with the project to some extent still awaiting approval by management and the relevant bodies. The programme is due to start in 2016.

33 Climate action report Campaign to use waste heat About two thirds of the energy used in industry is for process heat, which in turn produces a significant amount of waste heat. The considerable and often costeffective potential for making savings by preventing or using waste heat should be exploited more consistently. The amendment to the guidelines for funding climate-friendly cross-cutting technologies and for providing energy advice to medium-sized companies resulting from the German government s decisions on the National Action Plan on Energy Efficiency in December 2014 were fully implemented at the beginning of Furthermore, advice to local authorities and SMEs on putting energy performance contracting into practice has been supported by a funding guideline Federal Office for Economic Affairs and Export Control (BAFA) since 1 January Developing KfW s energy efficiency programmes KfW s energy efficiency programmes centre on awarding low-interest loans and are intended to promote energy-efficient production facilities and processes that have a high energy-saving potential. In taking this programme forward, a new minimum entry level (10 percent savings) and a new premium level (30 percent savings) have been introduced with the level of funding being based on the level of energy saved. Investments in production facilities and processes designed to save energy are also eligible for funding. As part of the implementation of the decisions of the coalition committee of 1 July 2015 (new package of energy-saving measures, compare Section 5.4.2), the campaign to use waste heat is to be expanded into a new and comprehensive initiative to avoid and use waste heat and will become a key measure. In addition, funding for high-efficiency pumps and other cross-cutting technologies designed to increase efficiency will be expanded or continued Programme to pilot energy-savings meters Instead of funding savings based on the use of predetermined technologies, the idea here is to use energysavings meters that can measure the savings brought about by individual appliances with great precision and at little cost. The funding thus does not favour any particular technology. In line with the German government s decisions, a funding guideline on the programme to pilot energysavings meters is therefore being developed and will come into force at the beginning of There will then be an invitation to tender for a monitoring project and an IT interface. The improved funding conditions took effect in July 2015; the latest guidance notes are published on KfW s website. For information on funding for energyefficient refurbishment and energy-efficient new commercial buildings please refer to the further development of the low-carbon building refurbishment programme (compare Section ).

34 34 Climate action report Improving the conditions for energy efficiency services Numerous non-monetary obstacles are hampering what would actually be profitable investment in energy efficiency and energy-saving technologies. The idea here is to work with the stakeholders concerned with a view to improving the conditions for investment of this kind. Specific proposals for action will be presented before the end of this year. It is also important here to engage in dialogue with the Länder, which is why the federal government is launching an information campaign and will setting up a working group on performance contracting in conjunction with the Länder. The federal government will work towards ensuring that all public property (excluding property belonging to the armed forces) that has energy costs in excess of 100,000 euros should be reviewed to determine if it is suitable for performance contracting and within five years cost-efficient performance contracting schemes should be put in place unless the operators themselves put similar measures in place at lower cost. In 2015, a process of dialogue on this project was initiated by setting up a working group on law and energy performance contracting as part of the energy efficiency platform established at the Federal Ministry for Economic Affairs and Energy (BMWi) New financing concepts In practice, numerous problems hamper investment even in highly profitable efficiency measures. They include the problem of trapped liquidity and the rules of individual companies regarding payback periods. To resolve these problems, new financing concepts and models will be reviewed. They include the idea of using future profits to boost liquidity for investment today for example, by consolidating projects, standardisation of business models and making use of the new European EFSI for investment in current efficiency. The process of dialogue on this project was launched by setting up a working group on innovative financing instruments as part of the energy efficiency platform at BMWi. Another aim is to speed up the introduction of environmental and energy management systems (such as ISO , EMAS) in companies, improve the incentives to do this, develop and implement easy-access options, especially for Small and medium-sized enterprises (SMEs), and refine the standards system to take account of climate change. A modular energy efficiency model known as mod:eem was developed within the National Climate Initiative (NKI). It is available free of charge to companies wishing to introduce an energy management system. The government would like to see as many companies as possible participating and is supporting its broad-based use Strengthening research to improve energy efficiency The German government is focusing on applicationrelated, project-oriented research into increasing energy efficiency and will continue to put more funding measures in place in this area. To this end, topic-specific research networks are gradually being set up and are already in place for the buildings, electricity grids and systems analysis fields. Other topics are currently under review Reviewing the efficiency requirement of the Act on the Prevention of Harmful Effects on the Environment Caused by Air Pollution, Noise, Vibration and Similar Phenomena (BImSchG), including with regard to optimising its enforcement The requirement to use energy sparingly and efficiently is explicitly stated as a statutory requirement for operators in Article 5 (1), bullet point 4 of the Act on the Prevention of Harmful Effects on the Environment Caused by Air Pollution, Noise, Vibration and Similar Phenomena. The responsible government agency must verify compliance with this requirement, particularly as part of licensing procedures pursuant to this legislation. When it comes to enforcement, however, it is often not easy to evaluate the licensing application documentation. First, the information requirements regarding energy efficiency as specified in Article 4 (d) of the Ordinance on the Licensing Procedure (9. BImSchV) secondary legislation implementing the Act are very general in character. Secondly, the question arises of standardised evaluation criteria when deciding on whether a project should be licensed. Here there are a number of uncertainties about the conditions companies can be required to meet including with regard to enforcement. There is a need for action here. The project is still at an early stage of development; its specifics will be defined at a later date.

35 Climate action report Continuing existing programmes to promote energy-efficient production (cross-cutting technologies in SMEs, optimisation of production processes) Industry and commerce, responsible for almost a third of Germany s annual energy consumption, offer great potential for energy efficiency measures. A funding programme that awards grants to promote highefficiency cross-cutting technologies in SMEs creates incentives for companies to make greater use of these technologies. They receive funding either for individual measures (e.g. use of high-efficiency heat exchangers in air conditioning systems) or for more complex measures to optimise systems (e.g. heat recovery systems, insulation for pipes and pumps). Harnessing the savings potential that exists in these areas makes a significant contribution to increasing energy efficiency. In addition to increasing energy efficiency, decreasing greenhouse gas emissions is also of particular importance for German industry. For that reason, BMWi has been supporting industry since 2014 whenever energyefficient and climate friendly production processes are used. Companies receive funding when investing in production processes provided they choose options that are as energy-efficient and therefore environmentally friendly as possible. Currently, experience gained during the first round of applications is being used to amend the guideline and make the programme even more tightly focused on achieving its goal. It will also be coordinated with the additional measures proposed for industry that resulted from the coalition committee s decision of 1 July 2015.

36 36 Climate action report Individual responsibility for increasing energy efficiency Energy efficiency network initiative In energy efficiency networks, processes involving energy advisors and facilitators help companies to define efficiency targets for the network and take the steps needed to meet them. The work of the networks participating in this initiative, which is run by the German government and German industry associations, is based on uniform minimum standards. The aim is to establish 500 energy efficiency networks by Companies are contacted by industry associations and organisations, which in individual cases also initiate networks. The German government provides support for public relations (financing for offices provided by BMWi) and by increasing funding for the LEEN 100 plus project (financed by the Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety under its National Climate Initiative, NKI), which aims to set up the energy efficiency networks in compliance with the LEEN standard. On 3 December 2014 immediately after the National Action Plan on Energy Efficiency had been adopted the agreement on which the network initiative is based was signed by the German government and the industry associations involved. A best practice guide for the networks was published in June 2015 and the initiative s internet portal was launched in September Preparations to set up an office are currently underway. An invitation to tender for an accompanying monitoring project will be issued in Advice on local authority energy efficiency networks This advisory programme is intended to recruit local authorities to join energy efficiency networks, support their establishment and operation, and monitor and ensure quality assurance. The funding guideline entered into force on 1 January 2015 (BAFA). Since it is addressed to the same target group as the guidelines on energy efficiency in wastewater treatment (compare Section ) and on providing energy advice to local authorities (compare- Section ), these measures will in future be implemented under a single funding guideline. A new guideline on energy advice and energy efficiency networks for local authorities and non-profit organisations is scheduled to enter into force at the beginning of EU labelling and ecodesign/national top-runner initiative There are plans to amend the EU Energy Labelling Directive. In summer 2015, the EU Commission presented a proposal for a Directive, which includes plans to return to the A G label and the introduction of a product database. The aim is to achieve an agreement on policy in the Council as early as the end of November 2015 and to conclude negotiations with the European Parliament in the first half of A dialogue series was held, including a number of workshops with different stakeholders, to prepare Germany s position on the planned amendment. The German government also plans to commission a study on label design and ease of understanding for consumers. The national top-runner initiative (NTRI) is meant to provide information, promote dialogue and inject new ideas. The idea is for it to become established as a key energy efficiency tool in the context of the continued development of the EU energy label. It aims to work along the value chain manufacturer/retailer/consumer to accelerate the market penetration of highquality products and services (top runners) that help to lower energy consumption. Current proposals envisage the initiative comprising the following elements: Consumer-oriented communication on electricity efficiency Product-related energy efficiency and rational use of electricity in households

37 Climate action report according to ISO or environmental management scheme in line with EMAS. The Energy Services Act was amended by a decision of the Bundestag on 5 February 2015 to take account of this. The Federal Office for Economic Affairs and Export Control (BAFA) is responsible for enforcement (Articles 8c and 12 of the Act). It published a fact sheet on this in May Taking forward the initiative to support SMEs in implementing Germany s energy transition and its climate change mitigation policy Activating retailers as efficiency multiplications Activating manufacturers to develop future top runners (e.g. through an open innovation platform) A national online database, and A stakeholder dialogue/dialogue series on product efficiency. An invitation to tender for the implementation of the initiative was issued in 2015 so that its launch is expected to take place at the beginning of A parallel evaluation project will determine the savings effects. The German government expects the first findings from this to be available in late Mandatory energy audits for enterprises that are not SMEs (implementation of Article 8 of the Energy Efficiency Directive) The German government believes that there is often considerable potential for energy savings in large companies that have a correspondingly high final energy demand. This means that there is likewise huge potential for reducing greenhouse gases. Under Article 8 of the EU Energy Efficiency Directive, these companies (not SMEs) are obliged to carry out an energy audit in compliance with DIN EN by 5 December 2015 and then at four-year intervals, or alternatively to introduce a continual energy management system Since 1 January 2013, this initiative targeting SMEs has been supporting companies in embracing Germany s energy transition. It offers training and networking projects to provide practical help on energy efficiency and climate action for small and medium-sized enterprises in both the skilled crafts and trades sector and industry. The SME initiative is a collaborative project involving the Association of German Chambers of Commerce and Industry (DIHK), the German Confederation of Skilled Crafts (ZDH), the Federal Ministry for Economic Affairs and Energy (BMWi) and the Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB). Currently, its continuation beyond 2015, including the specific measures planned, is the subject of discussion among the partners involved: BMUB, BMWi, DIHK and ZDH Taking forward the programme to provide energy advice to SMEs The programme to provide energy advice to SMEs has been adapted to incorporate the energy audit requirements as specified in Annex VI of the Energy Efficiency Directive 2012/27/EU. The maximum level of funding has been increased and it is now also possible to receive funding to monitor implementation of measures. The amended funding guideline came into force on 1 January National efficiency label for old heating systems The aim of this measure is to provide a motivation for building owners to replace old, inefficient and therefore greenhouse gas-intensive heating. A voluntary scheme is planned to start in 2016, under which various actors (heating engineers, heating inspectors, building energy advisors) will issue an energy label to boilers that are more than 15 years old. From 2017 onwards, it

38 38 Climate action report 2015 is planned that chief heating inspectors will be obliged to attach the label to the heat-producing appliance after completing their inspection. The amendment to the Energy Consumption Labelling Act (EnVKG) required to implement the national efficiency label for old heating systems was successfully concluded in November The German government is therefore confident that the efficiency labelling scheme will be launched on 1 January 2016 according to plan as one of the National Action Plan on Energy Efficiency s immediate actions. The savings effects brought about by the measure will be determined by an evaluation process. The first estimates of the total savings effects will not be possible before the end of Energy efficiency in the wastewater treatment sector Due to the high electricity saving potential and therefore GHG reduction potential, the German government decided to fund energy checks and analyses in local authority wastewater treatment facilities for a five-year period. As a result of the insights gained through the funding programme, a joint review is being carried out with the Länder to establish whether local authority wastewater treatment facilities should be obliged to carry out energy checks and analyses in the future. For information on the funding guideline and how the procedure will continue see Section Since it addresses the same target group as the guidelines on advising local authority energy efficiency networks (compare Section 5.6.2) and energy advice for local authorities (compare Section ), these measures will in future be implemented under a single funding guideline. A new guideline on energy advice and energy efficiency networks for local authorities and non-profit organisations is scheduled to enter into force at the beginning of Advice: consolidation and quality assurance High-quality advice is crucial if efficiency potential is to be sustainably exploited and Greenhouse gas (GHG) emissions cut as a result. The German government has therefore agreed to collaborate with all stakeholders to review existing advisory schemes and establish whether they are easily comprehensible and effective and fulfil other requirements. It also intends, wherever possible, to consolidate advisory schemes within the different fields of action. In addition to that, existing quality assurance instruments within the field of energy advice will be extended to other target groups and their criteria will be reviewed and standardised as far as possible for each field of action. Furthermore, criteria will be defined to guarantee high-quality advice and, where necessary, the development of new quality standards will be instigated and supported. The content of the advisory programmes will be geared to the requirements of the Energy Efficiency Directive and better adapted to the needs of those receiving the advice. The aim is to develop a comprehensive range of advisory services with clearly defined criteria for the advisors in each area. The possibility of defining a job description for energy advisor will be explored. During the implementation of the measure, the German government has improved the funding terms and conditions for on-site energy advice for residential buildings (compare Section ) and energy advice for SMEs (compare Section ). Basically, the funding programmes are regularly updated and further optimised with regard to effectiveness and quality assurance. It goes without saying that the content of the advisory programmes is geared to the requirements of the Energy Efficiency Directive and better adapted to the individual needs of those receiving the advice. The energy advisors working within the federal government s funding programmes are registered on a government list of energy efficiency experts. Proof of their qualifications for the job includes producing regular evidence of continuing professional development courses and random checks of their work. The expert list is therefore a way of assuring the quality of the government-funded programme to support advice, planning and completion of energy-efficient building refurbishment. Since there is no definitive profile for the job of energy advisor, there are plans to invite tenders in the near

39 Climate action report future to develop an examination that energy advisors would be required to pass. The process of dialogue around these measures was launched this year by setting up a working group on advice and information as part of the energy efficiency platform at the Federal Ministry for Economic Affairs and Energy (BMWi) Developing key performance indicators and benchmarks in the commercial sector and for households To be able to use energy efficiently, it is essential to first of all know the level of energy consumption in the past, define a baseline and ensure that future energy consumption can be measured. Recognised bases of comparison, methods, key performance indicators and benchmarks and a comprehensive mix of instruments to collect and use this data can be useful here. The German government therefore decided to put the appropriate measures in place to achieve this Energy efficiency in information and communications technology On the one hand, the huge progress in information and communications technology (ICT) has already helped to bring about significant reductions in specific energy demand in this field but, on the other hand, the fact that the steady increase in ICT use continues unabated and is accompanied by more and more appliances and IT infrastructure is significantly boosting both electricity consumption and cooling demand in this field. To counter this trend with appropriate measures and make the use of ICT, which has become a firm fixture of daily life, efficient and therefore lessen its impact on the climate, the German government has decided to address efficiency potential in this field too. To this end, the Federal Ministry for Economic Affairs and Energy (BMWi) commissioned a study on current trends in ICT-related electricity demand in Germany. The findings of the study became available in October 2015 and are currently being analysed. One of the aims is to predict future ICT-related electricity demand up to 2025 and present recommendations for action to reduce it. Based on the study s findings and recommendations, measures will be put in place to address the potential for greater efficiency in the field of ICT Energy advice for agricultural businesses Energy advice has proved to be an excellent tool for providing interested parties with high-quality information in all economic sectors and motivating operators of facilities and users and owners of buildings to take measures to mitigate climate change through energy efficiency. However, this presupposes the availability of highly skilled and appropriately trained energy advisors, who know how to address the different target groups and advise them appropriately. For this reason, the German government decided to roll out its first nationwide funding programme for energy advice in agriculture. Funding energy advice and knowledge transfer is part of the Federal Ministry of Food and Agriculture s 2016 to 2018 programme to promote measures to increase energy efficiency in agriculture and horticulture. The Federal Office for Agriculture and Food (BLE) is the implementing agency. The advice provided by BLE-approved advisors is intended to result in energy-saving strategies for each individual business. Funding knowledge transfer is meant to facilitate accessible participation for farmers at energy efficiency roundtables. The Federal Ministry of Food and Agriculture has already developed the funding guideline needed for this and registered it for approval at the EU Commission. The programme is likely to be launched at the beginning of 2016.

40 40 Climate action report Reinstating the federal programme to promote energy efficiency in agriculture and horticulture From 2009 to 2012, the Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety and the Federal Ministry of Food and Agriculture already had a programme funding measures to increase energy efficiency in agriculture and horticulture. Due to the economic crisis at the time and the fact that businesses were taking a cautious approach to investment, the number of funding applications only picked up towards the end of the programme. However, since practitioners have increasingly expressed a wish for the programme to be revived and this sector is still thought to hold significant potential for increasing energy efficiency, the German government decided to reinstate the funding programme in its National Action Plan on Energy Efficiency, initially for the 2016 to 2018 period. The federal programme to promote measures to increase energy efficiency in agriculture and horticulture 2016 to 2018 offers different kinds of funding for small and medium-sized enterprises. It includes funding for modernisation schemes (individual measures and systematic optimisation) and for constructing new low-energy buildings for plant production. This takes the form of different levels of grants awarded to the businesses. The Federal Office for Agriculture and Food (BLE) is the implementing agency. The Federal Ministry of Food and Agriculture has already developed the funding guideline needed for this and registered it for approval at the EU Commission. The programme is likely to be launched at the beginning of Promoting energy efficiency managers to harness potential in business and industrial parks, for example By promoting the deployment of energy efficiency managers, it is possible to identify energy efficiency potential both within individual companies and beyond the factory gate for example, across entire business parks, and to work with the participating businesses to harness that potential. To date, the question of increasing efficiency has been looked at primarily at the level of the individual company, which means that synergy effects across companies remain untapped. The idea is that energy efficiency managers should analyse the participating companies relevant databases, advise them on funding programmes, identify cost-effective efficiency approaches, and support and monitor their implementation of measures. The programme is currently being devised and implementation options examined Sector-specific efficiency campaigns The current climate and energy policy instruments and measures for industry and the commerce/trade/services sector are often not directed at any specific sector but instead work on a cross-sectoral level. The total energy savings achieved could be higher if, in addition to these measures, a greater number of sector-specific measures were put in place. For this reason, the German government s decisions set out in the National Action Plan on Energy Efficiency propose carrying out energy efficiency campaigns, organised by two associations in sectors that have a great savings potential in industry and the commerce/trade/ services sector. The aim is to make it possible to access information tailored to particular target groups on sector-typical energy consumption, cost drivers, savings and funding opportunities and regional events. The Federal Environment Agency (UBA) has already presented a draft concept, on the basis of which the next step can be taken, which is to make contact with industry associations that could potentially implement it. One scheme that has already been successfully launched is DEHOGA s (German Association of Hotels and Restaurants) energy and climate action campaign, which includes numerous practical energy-saving tips ranging from technology through to funding opportunities along with investment and profitability assessment tools. It works closely with qualified energy experts and

41 Climate action report enables its members in the hotel and catering business to participate in environmental checks covering energy, waste, water and food. The National Action Plan on Energy Efficiency highlights it as an example of good practice for other sector-based approaches to follow Pilot project on using a new method to establish key energy efficiency parameters in companies and promote dissemination As part of the development of key performance indicators and benchmarks in the commercial sector and for households (compare Section ), a method to establish key energy efficiency parameters in companies has been developed and will be field-tested. Based on the experience gained during this pilot, it will be revised and then rolled out in practice. Key energy efficiency parameters in companies can be used, for example, as the basis for the work being carried out in energy efficiency networks and in advisory services. 5.6 Climate-friendly building and housing strategy The German government will only be able to meet its climate targets if its policies on environment and climate-friendly building, energy-efficient neighbourhood and urban development and energy efficiency in buildings are dovetailed. Scarcely any other area has such a direct impact on people s everyday lives as the buildings in which they live, work and spend their free time. For that reason, the government is developing an efficiency strategy for buildings (compare Section 5.6.2) with the Federal Ministry for Economic Affairs and Energy (BMWi) as lead agency and a climate-friendly building and housing strategy, for which the Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety is the lead agency. With its climate-friendly building and housing strategy, the government has set itself the goal of using an integrated and cross-cutting approach that combines energy efficiency concerns with more far-reaching climate action and also deals with more general questions regarding housing, neighbourhood and urban development, development of rural areas and the challenges posed by demographic change with the aim of making an additional contribution to reducing emissions. The climate-friendly building and housing strategy is thus intended to become a mainstay of climate change mitigation policy, particularly with regard to meeting the goal of achieving a virtually climate-neutral building stock by Long-term goal: climate-neutral building stock The climate-friendly building and housing strategy will create the reliable long-term framework for individuals, villages, towns and cities, and neighbourhoods needed to achieve a virtually climate-neutral building stock by It will take cultural, social and economic effects into consideration. That includes, in particular, the affordability of new and existing buildings and housing, compliance with standards for housing for the elderly, environmental criteria, avoidable health risks and other more general issues (e.g. development of rural areas, avoiding land use conflicts). Its decision to continue to develop its climate-friendly building and housing strategy is an indication that the German government is making good progress so that early in 2016 findings are likely to be available and it will be possible to act on them. The aim is to officially incorporate the climate-friendly building and housing strategy into the Climate Action Plan 2050 in The basis for this long-term climate-friendly building and housing strategy is a reliable and valid overview of building data, which should make it possible to carry out a differentiated assessment of the climate impact of the building stock. The German government therefore attaches great importance to improving the database for existing buildings, since it intends to achieve a virtually climate-neutral building stock by Climateneutral means that the buildings have only a very low energy demand, which is for the most part met by renewables. The government aims to instigate a research project to improve the data situation Energy efficiency in the buildings sector Energy efficiency in the buildings sector focuses on reducing final energy consumption and increasing the use of renewable energy in buildings. Efficient use of energy in buildings reduces primary energy demand and therefore not only produces benefits for economy as a whole, but also makes a significant contribution to cutting greenhouse gas emissions in the buildings sector.

42 42 Climate action report Quality assurance and optimisation/development of existing energy advisory schemes Efficiency, particularly in the buildings sector, involves considerable quality specifications, not only with regard to the standard of building work but also at an earlier stage when decisions are taken. For that reason, the existing energy advice scheme is closely linked to the lowcarbon building refurbishment programme. It is already possible at all stages starting with initial advice such as building and heating check-ups or more in-depth on-site advice through to support for refurbishment schemes to access appropriate funding programmes, including those offered by the Federal Office for Economic Affairs and Export Control (BAFA) and KfW. This time-tested concept has now been expanded, creating additional incentives such as better funding conditions and the inclusion of homeowners associations. The amended funding guideline on on-site advice, which came into force on 1 March 2015, addresses in particular the individual needs and financial circumstances of people willing to carry out energy-efficient building refurbishment. Funding is available for advice on comprehensive refurbishment and on preparing individual refurbishment timetables, which facilitate carefully coordinated, step-by-step refurbishment measures to increase energy efficiency Tax incentives for energy-efficient refurbishment The National Action Plan on Energy Efficiency contains provisions on future support for energy-efficient building refurbishment using tax incentives worth 1 billion euros a year, funded jointly by federal and Land governments and local authorities. However, it has not yet been possible to reach the necessary final agreement with the Länder especially regarding financing these arrangements by measures in the same policy area. As an alternative to the planned tax incentives for energy-efficient building refurbishment under the National Action Plan on Energy Efficiency, a new incentive programme for energy efficiency will usefully complement and strengthen the existing funding landscape (low-carbon building refurbishment programme and MAP). To this end, it will also be possible to use the 165 million euros in federal funds available per annum for additional efficiency measures in the buildings sector. The key areas for funding are modernisation of heating systems and installation of ventilation systems to prevent damage to buildings (such as mould). The programme is scheduled to begin at the beginning of Continuing, refining and providing additional funding for the low-carbon building refurbishment programme up to 2018 including introducing the Efficiency House Plus funding standard The German government s low-carbon building refurbishment programme, which finances the KfW s funding programmes for energy-efficient new build and refurbishment, is one of the government s established and very successful funding programmes. From 2006 until the end of July 2015, it has supported the energyefficient refurbishment or new build of almost 4 million homes with an investment volume of over 210 billion euros. Furthermore, since 2007, energy-saving measures in over 2,200 buildings that are part of social or local authority infrastructure have been funded. As a result of investment that has been funded since 2006, CO 2 output over the 30-year lifetime of the measures will be reduced by about 7.9 million tonnes a year. The low-carbon building refurbishment programme is thus a mainstay of Germany s energy transition and makes a crucial contribution to meeting the targets the government has set. This successful, time-tested funding instrument has been refined and 200 million euros have been added to it to enable building refurbishment and new residential buildings, local authority and social facilities and commercial buildings to be funded. The requirements that have to be met under this programme are far more stringent than the legal requirements under the Energy Conservation Ordinance (EnEV) and will culminate in the introduction of the Efficiency House Plus funding standard. Since the beginning of 2015, the KfW funding programmes have gradually been modified to enable building refurbishment to make an additional contribution to energy saving and climate change mitigation and to offset the additional (energy-related) investment costs and maintain the funding impetus despite low market interest rates. For example, subsidies for energy-efficient individual measures and comprehensive refurbishment to Efficiency House standards have been increased, a repayment subsidy has been introduced in grant-based funding schemes and repayment subsidies in general have been increased. Furthermore, the

43 Climate action report loan caps for new build and refurbishment have been adjusted. Homeowner associations benefit particularly from these measures. Access to funding for this group of homeowners has also been made easier within the regulations on state aid (EU s de-minimis Regulation). In the non-residential buildings sector, two programmes were rolled out: one on energy-efficient building and refurbishment of commercial buildings and the other on energy-efficient refurbishment of local authority buildings and buildings housing social facilities (non-residential buildings). The introduction of a new funding standard entitled Efficiency House 40 Plus is planned for residential buildings in Heating check-ups The voluntary heating check-up scheme is meant to identify weaknesses in inefficient heating systems and provide suggestions for how to remedy them. It looks at the entire system, including how the heat is generated and the possibility of using renewable energy, as well as heat storage, distribution and transfer. To this end, the existing heating check-ups under DIN were further developed by the industry concerned and academic institutions. The aim is to increase the efficiency of heating systems and hand in hand with that reduce the amount of primary energy used and lower CO 2 emissions. A funding programme is scheduled to be introduced to accompany this scheme in 2016 and will be implemented by the Federal Office for Economics and Export Control (BAFA) Energy advice for local authorities Some local authority-owned properties and facilities are highly complex in terms of building technology. At the same time, the number of properties local authorities own means that there are considerable opportunities to significantly increase energy efficiency. The starting point for the refurbishment needed to achieve this is as a rule well-founded energy advice that is tailored to the specific needs of local authorities. For that reason, the German government decided that its National Action Plan on Energy Efficiency should include the launch of a funding programme that would support on-site energy advice for local authority and public buildings and facilities, which would cover both energy-efficient refurbishment of existing buildings and new builds. Since it has the same target group as the scheme concerned with local authority energy efficiency networks (compare Section ) and support for the measure promoting energy efficiency in the wastewater treatment sector (compare Section ), these measures will in future be implemented under a single funding guideline. The new guideline on energy advice and energy efficiency networks for local authorities and non-profit organisations is scheduled to enter into force at the beginning of The guideline entered into force after consultation with the local authority associations and energy advice associations. The Federal Office for Economics and Export Control is responsible for enforcement.

44 44 Climate action report Energy saving legislation I further developing the Energy Conservation Ordinance (nearly zero-energy standard for new builds; review of specifications for existing buildings; review of energy performance certificates; improving enforcement) As well as the measures already mentioned in the buildings sector to increase energy efficiency, reduce primary energy demand and therefore cut CO 2 emissions, which are to be implemented primarily through enormous funding efforts, there are also plans to further develop the building efficiency requirements that are applicable under regulatory law. The standards stipulated under the Energy Conservation Act (EnEG) and Energy Conservation Ordinance (EnEV) are crucial to meeting the German government s energy efficiency and climate targets. The latest amendment to the Energy Conservation Ordinance entered into force on 1 May The core regulation is that energy requirements for new builds will become more stringent as of The Energy Conservation Ordinance s new-build standard, which will apply as of 2016, implements one of the key provisions of the EU Energy Performance of Buildings Directive and is the basis for the German government s National Action Plan on Energy Efficiency (NAPE) and thus also for its Climate Action Programme It is a step towards the nearly zero-energy building, for which a standard will be introduced as part of the amendment to the Energy Conservation Ordinance scheduled for 2016 to implement the EU Energy Performance of Buildings Directive. The EnEG, on which the Energy Conservation Ordinance is based, provides the necessary legal basis. The Act implements the general provisions of the EU Energy Performance of Buildings Directive and stipulates that new builds must be constructed as nearly zero-energy buildings from 1 January For non-residential new builds belonging to the public sector, this requirement comes into effect on 1 January The nearly zero-energy building is defined in the Energy Conservation Act as follows: nearly zero-energy building are defined in law as buildings that have a very high energy efficiency performance, i.e. have a very low energy demand, which is predominantly met from renewable sources. The EU Energy Performance of Buildings Directive speaks here of a nearly zero or very low energy requirement. The detailed specifications for nearly zero-energy buildings are to be regulated in the Energy Conservation Ordinance. Under the provisions of the Energy Conservation Act, new regulations must be adopted before 1 January A study is currently being carried out to establish what requirements of nearly zero-energy buildings are technically and economically feasible. This study is also looking at the question of whether and to what extent the requirements can be adapted to apply to alterations, extensions and conversion work to existing buildings provided they can be shown to be economically acceptable. The study will be concluded by the end of Furthermore, the transparency and comprehensibility of energy performance certificates and efficiency categories will be reviewed. A further aim is to work jointly with the Länder to bring about improvements in enforcement Energy saving legislation II a comparison between the Energy Conservation Ordinance and Renewable Energies Heat Act The Renewable Energies Heat Act is another key regulatory instrument alongside the Energy Conservation Act and its secondary legislation the Energy Conservation Ordinance. Further developing this legislation to create a coordinated system is a crucial component in meeting the goal of a virtually climate-neutral building stock. An expert evaluation to compare the Renewable Energies Heat Act and the Energy Conservation Act/Energy Conservation Ordinance, which has now been concluded, has identified a number of options for doing this. The evaluation examines overlaps at various interfaces and simplification options, especially with a view to better integration of renewable energy into heat supply for buildings and to making enforcement more effective. It also describes possible ways of merging the Renewable Energies Heat Act and Energy Conservation Act/Energy Conservation Ordinance Energy saving legislation III improving the Heating Costs Ordinance (review) Germany s energy saving legislation includes a stipulation in the Heating Costs Ordinance that heating and hot water costs must be billed on a consumption basis. In its National Action Plan on Energy Efficiency, the German government decided to review whether developing the legal provisions on billing and consumption information, bearing in mind the need to observe economic considerations, could make a useful contribution to increasing energy saving. The findings of the research project supporting this review are expected in 2016.

45 Climate action report Tenancy law Landlords are unlikely to carry out energy-efficient and therefore climate-friendly modernisation of rented property without an incentive. The possibility of being able to increase the rent following modernisation work is one such incentive. Tenants benefit from energyefficient modernisation in particular if their heatinginclusive rent is lower as a result of the modernisation work (win-win situation). If the rent increase is significantly greater than the cost savings achieved as a result of lower energy consumption following the modernisation work, tenants may in individual cases struggle financially. Preserving affordable housing is also one of the German government s key goals. It therefore plans, as proposed in the coalition agreement, to revise the regulations on rent increases following modernisation, including the hardship clause. The changes are meant to protect tenants from unaffordable rent increases. At the same time, care must be taken to ensure that there is no negative impact on incentives to carry out energy-efficient modernisation work. Currently, the Federal Ministry of Justice and Consumer Protection (BMJV) is developing guidelines, which are expected to be incorporated into legal regulations on this matter in Individual refurbishment timetables for residential and non-residential buildings The aim of drawing up individual refurbishment timetables is to ensure that building refurbishment work, which is often carried out in stages, is coordinated so that the final result is in line with the overall target of achieving a climate-neutral building stock by The German government will therefore develop a standardised framework that building owners can voluntarily use to determine the best refurbishment options technically and financially for their building. The findings of the ongoing study will undergo indepth field testing and could in future be incorporated into funding guidelines connected with the on-site advice and energy advice for SMEs schemes (see above) Taking forward the market incentive programme for renewable energies At 300 million euros in available funding per annum, the market incentive programme for renewable energies (MAP) is the key instrument for expanding the use of renewables in the heat market. It thus makes an important contribution to meeting Germany s climate targets in that it motivates and supports private individuals, businesses and local authorities to invest in sustainable heat supply technology and use renewable energy to meet their heating and cooling demand. At the same time, it also helps to meet the aim legally enshrined in the Renewable Energies Heat Act. Funding can take the form of a grant (BAFA) or a reduced interest loan, combined with a repayment subsidy (KfW). The aim of taking forward the market incentive programme for renewable energies is not simply to refine the programme as such but also to meet the target legally anchored in the Renewable Energies Heat Act of supplying 14 percent of final energy consumption in the heating and cooling sector from renewable sources. In addition to this, a number of communications activities have been carried out to explain the MAP and make people more aware of it. Work on this was concluded in the first quarter of 2015, which meant that the recast funding guideline was able to enter into force on 1 April 2015.

46 46 Climate action report Setting new standards promptly developing system components It is not unusual in the buildings sector for 20 years to elapse between a new development appearing and it establishing itself on the market. As a consequence of this, one-off solutions are invariably used when constructing buildings and little use is made of standardised solutions. By contrast, increased use of standardised system components offers the opportunity to construct buildings including their technology not only in a cost-effective way but also in uniform quality. The aim of the measure is therefore to establish clearer market interfaces for components, starting with research and development through to market trials. To this end, the German government has commissioned a study with the Federal Ministry for Economic Affairs and Energy (BMWi) as lead agency. Its findings are scheduled to be available before the end of 2015 and will be incorporated into the efficiency strategy for buildings (see below) Research network on energy in buildings and neighbourhoods The German government believes that its goal to achieve a climate-neutral building stock by 2050 can only be met if innovative solutions continue to emerge from research and be made available in practice. This depends to a great extent on a rapid transfer of results in one direction and of requirements (specifications) in the other so that research and development can be well directed and focus on practical needs. The research network on energy in buildings and neighbourhoods was instigated to consolidate the flow of information and develop ongoing research initiatives as a result of this process. The kick-off meeting took place in March 2015 and resulted in nine working groups being set up. Currently, around 500 experts are discussing what research is needed, along with future funding strategies, as a contribution to fleshing out plans for a funding initiative on solar construction/ energy-efficient towns and cities scheduled for The efficiency strategy for buildings The efficiency strategy for buildings is the title of a paper outlining a strategy on the energy transition in the buildings sector, which looks not only at technical and energy-related aspects but also at some initial approaches to the economic and possibly social issues connected with it. In a similarly integrative way, aspects such as interaction with other sectors (e.g. electricity/heat) are considered. The efficiency strategy for buildings examines how energy and climate targets can be achieved in the buildings sector. It thus makes an important contribution to identifying how to move towards the desired climate-neutral building stock. The efficiency strategy for buildings will therefore be adopted in the federal cabinet in conjunction with this climate action report.

47 Climate action report Training initiative in building efficiency Build up skills In addition to the measures already described, information and training and continuing professional development are also significant factors in climate-friendly development of the building stock. The German government believes that a building stock that is climateneutral in the long term can only be achieved if the trades and craftspeople, architects and all the planners involved in constructing a building are trained to a high standard. For that reason, it aims to launch a dialogue with all the relevant stakeholders as part of a programme to revitalize housing and energy-efficient building refurbishment. Under the European BUILD UP Skills initiative for the construction sector, the German Confederation of Skilled Crafts (ZDH) in conjunction with six consortium partners analysed training needs in the construction sector between 2011 and 2013, including in the light of the climate and energy targets agreed. The following conclusions were reached: The future skills needed in the buildings sector have thus far not been recognised soon enough and measures are needed to anticipate skills needed in the future, taking a long-term and coordinated approach. Cooperation across the different trades is often inadequate with the result that efficiency potential is not being fully exploited. Even the personnel providing training in the trades are not adequately skilled, particular in collaborating across the trades. Small and medium-sized trades businesses do not have the necessary resources to carry out intensive human resources development, which is why strategies to support them are needed. Levels of participation in continuing professional development are too low because courses are not sufficiently transparent and not enough is done to publicise them Programme under the ESF In addition to the project described above, which is carried out by the German Confederation of Skilled Crafts, the Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB) is also implementing a funding programme as part of the European Social Fund (ESF) entitled Vocational training for sustainable development key green skills to facilitate climate-friendly and resource-efficient working practices. This is the first federal programme in the history of the ESF with an explicit focus on the environment and climate action. The BMUB and the European Union will provide 35 million euros in project funds to 2020, which will be used in two areas: Field of action 1: cross-trade training strengthens collaboration right from the trainee stage across the trades that work on climate-friendly, low-energy construction and refurbishment. Field of action 2: each job is green is a scheme to fund work camps and road shows to provide more information about climate-friendly and resourceefficient jobs and production methods. It is the first federal programme to focus distinctly on aspects of environmental protection and climate change mitigation. In this it complies with the European Commission s objective to contribute in this funding period to a resource-efficient economy, including with the ESF. It is scheduled to run from 2015 to A funding guideline was published in 2015 for the first round of funding from 2015 to 2017/2018, which meant that implementation started that same year Climate-friendly housing for low-income households Climate component in housing benefit The rents (not including heating costs) of many homes where energy-efficient refurbishment has been carried out are higher than the maximum rent allowances for people receiving income-support benefits, which means that they often cannot afford to live in homes with a high energy performance standard. The German government, in conjunction with the Länder, is reviewing the possibility of adding a climate component to housing benefit. This could make it

48 48 Climate action report 2015 possible, for example, to base the maximum amounts payable on the energy performance of the building. The first objective is to carry out a research project to review the problem in its entirety and develop recommendations for action based on its findings. Results are expected to be available by the end of They will include a description of what effects (recipient numbers and financial impact) a climate component would have Amending books II and XII (SGB II and SGB XII) of the social code In addition to the possibility of including a climate component in housing benefit, the German government is considering amending books II and XII (SGB II and SGB XII) of Germany s social code. The idea is to make it possible to use a single concept (gross rent including heating) to decide on the appropriate level of payments for accommodation and heating within the basic income support for jobseekers under book II (SGB II) and within social security benefits under book XII (SGB XII). A research project has already been commissioned to look into this. Its findings are expected to be available at the end of Rents maps Differences in energy performance are not always reflected in the market. The Federal Ministry of Justice and Consumer Protection is currently reviewing the legal provisions regulating how local reference rents are calculated in rents maps. This work is being supported by experts. The possibility of including the standard of energy-related fittings and energy performance in rents maps is being considered. The BMJV is likely to present the first guidelines on this at the end of Draft legislation can be expected in Energy efficiency measures and climate action in local authorities Energy-efficient urban rehabilitation If climate targets are to be met, it is essential that energy-efficient solutions are not confined to individual buildings but extend to entire neighbourhoods. KfW s energy-efficient urban rehabilitation programme has been running since the end of By funding integrated neighbourhood strategies and rehabilitation managers and energy-efficient supply systems for neighbourhoods (especially heat supply), it has triggered comprehensive measures to improve energy efficiency in buildings and local authority infrastructure. The programme is being continually developed and dovetailed with other funding programmes. The following improvements to the programme will be implemented shortly: From 1 December 2015, the option of extending the rehabilitation management scheme from three to five years will be introduced. From 1 December 2015 repayment subsidies for the energy-efficient neighbourhood utilities programme will be introduced to make it more attractive for investors. Ways of eliminating barriers are to be given greater consideration in future both at concept and implementation level. Public relations work will be expanded to make the programme better known and to ensure a transfer of knowledge among stakeholders. There are plans to select examples of good practice from the 63 pilot projects in the next few years and

49 Climate action report Funding for the local authority guideline has been significantly increased as part of the Climate Action Programme This has improved the support for local authority climate action projects. For example, a summer application window was introduced in October 2015 in addition to the established application window at the beginning of each year. Funding for investmentbased climate action projects has also been extended. New priority areas here include LED street lighting, along with investment measures in schools, children s daycare facilities, leisure and sports facilities and swimming pools Funding the refurbishment of facilities for sports, youth and culture (model projects) to gather insights on how to improve implementation of the programme. An exchange of information among the rehabilitation managers is to be ensured by annual networking meetings and the annual meeting between rehabilitation managers and climate action managers maintained.. Further developing KfW s energy-efficient urban rehabilitation programme is also a priority for the Alliance for Affordable Housing and Building (Bündnis für bezahlbares Wohnen und Bauen). In addition to neighbourhood approaches and broadbased local authority climate action, facilities for sports, youth and culture will receive special funding in future, since they play a key role in social integration. A new federal programme, which will be launched before the end of 2015, aims to fund larger-scale social infrastructure projects that attract nationwide attention and have the dual purpose of social integration and climate change mitigation. This easy-access funding for climate action is also intended to leverage relevant mitigation potential with low to medium investment volume. It will address in particular those local authorities for whom a new build or complete refurbishment of sports facilities, swimming pools and youth amenities is not an option. To ensure rapid implementation, the funding will be integrated into the comprehensive funding of the local authority guideline (see above) Climate action in local authorities local authority guideline Since 2008, the BMUB has been funding climate action projects on the basis of a guideline on promoting climate action projects in social, cultural and public organisations under the National Climate Initiative ("local authority guideline"). A total of 8,000 projects in around 3,000 local authorities have already been supported. Based on this local authority guideline, advisory services, development of climate action concepts, climate action management schemes and investment measures to promote climate change mitigation have been supported in areas such as LED lighting and ventilation Climate-friendly heat generation Micro-CHP One of the mainstays of climate-friendly building and housing is energy efficiency; the other is ensuring that whatever heat is needed for space heating and hot water is supplied in a way that is as climate-friendly as possible. To drive climate-friendly heat generation forward, the German government intends to amend the existing micro-chp guideline as part of the National Climate Initiative, develop it in line with its CHP strategy and expand it to take account of the electricity market, for

50 50 Climate action report 2015 example by introducing a funding criterion for particularly electricity-efficient systems. Thus, in early 2015 the first amendment to the micro- CHP guideline was completed the first step to promoting climate action in this segment of power generation. New bonus subsidies were introduced, one for heat efficiency and the other for electricity efficiency Eliminating tax obstacles for housing companies Beyond promoting the dissemination of efficient technologies, especially technologies such as CHP, the German government would also like to ensure that there are no obstacles to using climate-friendly energy conversion. This includes a tax issue that applies to housing companies that generate electricity from renewables or in combined heat and power plants. If they fulfil certain criteria, housing associations are currently exempt from business and corporation tax. Other types of property development company can apply for relief on business tax. However, any tax relief can be lost if they operate photovoltaic or combined heat and power plants. The authorities have already demonstrated possible solutions to the problem in the form of the decision issued by Düsseldorf regional tax office of 9 September 2013 (G /0015). However, if it is seen that obstacles continue to exist in practice, every attempt should be made to ensure that housing associations and companies do not lose their tax relief if they generate electricity from renewables or CHP. The German government s Climate Action Programme 2020 included a mandate to review this situation. This is currently being worked on in the Alliance for Affordable Housing and Building with the aim of finding a solution that takes all relevant aspects into account Competition for ideas: making climate-friendly building an attractive option The German government sees the public s identification with the aims of its climate action policy in particular with the objectives in the buildings sector as a key factor in the success of the country s energy transition and action to mitigate climate change. For that reason, its Climate Action Programme 2020 includes the decision to hold a competition for ideas with the aim of finding new communications approaches to make climate-friendly, energy-saving building and housing an attractive lifestyle product. Thus far, the German government has identified the following key elements for carrying out the competition: Drawing up a concept for running the competition for ideas Running the competition with awards for the best ideas Translating the results into practice Instigating a think tank on climate-friendly building The definitive concept for running the competition is likely to be completed by the end of 2015, so that it can be expected to take place in 2016 and 2017.

51 Climate action report Climate change mitigation in the transport sector In terms of traffic volume, the transport sector is one of the sectors experiencing the most significant growth, its share in total emissions in Germany being similar to the buildings sector. At the same time, the German government believes there is considerable potential for reducing greenhouse gas emissions here. Consequently, with the decision included in the Climate Action Programme 2020, the German government is stressing that the transport sector can contribute between about 7 and 10 million tonnes of CO 2 equivalents to meeting the 2020 climate targets as a result of a broad-ranging package of measures. This package applies to the following areas: Making passenger and freight transport climatefriendly Increased use of electric drives in vehicles Cross-cutting measures in the transport sector Climate change mitigation measures in aviation, and Making freight transport climate-friendly Further developing the HGV toll and basing it on energy efficiency classes Based on a decision by the German government, the measure to make freight transport climate-friendly is to be achieved by a package of measures. For example, since 1 January 2015, the toll system has incorporated infrastructure costs and the external costs of air pollution on a scale based on emission classes. On 1 July 2015, the HGV toll was extended to an additional 1,100 kilometres of trunk road that are of a similar standard to motorways and since 1 October 2015 it has applied to vehicles with a maximum laden weight of between 7.5 and 12 tonnes, which were not previously included. Furthermore, there are plans to extend the HGV toll to all trunk roads in The technical and organisational implementation of this is currently being examined. The incorporation of additional categories of vehicle (such as buses) and staggered charges based on energy consumption and noise (in addition to ambient pollutants) is also being reviewed. Supporting climate change mitigation in international maritime transport.

52 52 Climate action report Market launch of energy-efficient commercial vehicles The market launch of energy-efficient commercial vehicles, is to be supported by a fixed-term incentive scheme. The work needed to flesh out the future funding programme is ongoing Strengthening rail freight transport In addition to the road transport mode, the German government believes there is also considerable potential for reducing greenhouse gas emissions by expanding rail transport. Consequently, rail transport is to be increasingly upgraded over the next few years. For that reason, there will be much higher investment in upgrading rail infrastructure between 2016 and In addition to carrying out projects included in the requirement plan, funds for multimodal transport are also to be maintained at a sufficiently high level. On 1 July 2015, the federal cabinet decided to instigate a spending review on funding for multimodal transport. The spending review is mandated to examine whether the funding programme s objectives are appropriate, whether they are being achieved, whether this is being done in a cost-effective way, and how the funding might be optimised. The findings of the spending review will be taken into consideration in the future development of the funding from 2017 onwards. Furthermore, the measures to increase capacity that are part of the immediate action programme on sea ports/hinterland connections II will be implemented between 2015 and 2020 and the Munich Geltendorf Lindau and Ulm Friedrichshafen Lindau railway lines will be electrified. The financing agreement for a first tranche for the immediate action programme on sea ports/hinterland connections II has been concluded and measures for a second tranche are currently being examined. The financing arrangements for the line electrification schemes are currently being negotiated Strengthening inland waterway transport In addition to road and rail, inland waterway transport is also earmarked as the third transport mode to be made climate-friendly in the future. Thus, the funding guideline for lower emission engines in inland shipping has been revised and as of 21 July 2015 replaced by a guideline on grants for inland shipping enterprises for sustainable modernisation of inland vessels (programme to fund the sustainable modernisation of inland vessels). Furthermore, funding for multimodal transport will be maintained at a high level and the spending review is considering how the funding might be optimised (compare Section ) Strengthening local economies Beyond moves to strengthen the individual modes of transport as described above, the Climate Action Programme 2020 also includes a decision to strengthen local economies and organise delivery traffic in a more environment-friendly way. Here joint regional land accounting systems, optimisation of how regional structure plans, spatial development plans, regional transport development plans and strategies for local authorities to join forces to develop commercial areas could help to create structures that incur less traffic. To this end, there are plans to develop options for action for local authorities in the form of a guidance document, on the basis of which more specific proposals for a funding programme will be developed. The aim is to use the joint management intentions of local authorities to reduce the number of trips and the transport distances, protect sensitive areas and reduce land use. Currently, work is ongoing to award a contract for a preparatory analysis, which will form the basis of the guidance document referred to above. The findings are likely to be available in the first half of 2016.

53 Climate action report Making passenger transport climate-friendly Strengthening public transport Like the policy to make freight transport climatefriendly, this policy to make passenger transport climate-friendly also comprises an entire package of measures. In 2014, the Länder received around 7.3 billion euros in regionalisation funds through the Local Public Transport (Regionalisation) Act (Regionalisierungsgesetz, RegG), which they are able to use primarily to finance public rail transport services but can also invest in improving the local public transport system. The amount of regionalisation funds the Länder are entitled to had to be redefined and the new stipulation took effect as of The German government presented a bill on this and the Bundesrat (Germany s upper house) referred it to the mediation committee. The Bundestag (lower house) and Bundesrat accepted the mediation committee s recommendation for a decision on the 15 October 2015 and 16 October 2015 respectively, which concluded the legislative procedure. The following was agreed: A 1.5-percent increase in the regionalisation funds to approximately 7.4 billion euros for 2015 with no change to the formula for allocating the funds to the Länder. Increase in the regionalisation funds to 8 billion euros in The amount of funding for 2016 rises by 1.8 percent each year from 2017 to 2031 inclusive. The horizontal distribution of the regionalisation funds to the Länder from 2016 will be stipulated in a special federal government ordinance with the consent of the Bundesrat. Since 2007, legislation on unbundling (Entflechtungsgesetz) has meant that the Länder have received around billion euros each year in compensation payments from the federal government to enable them to improve transport in the municipalities (local public transport and local authority road building). Since 2014, these funds have been subject to only a general ringfencing provision concerning investment. They are entitled to further payments of million euros per annum under the federal programme based on legislation regulating federal government support for local transport funding (Act on Federal Government Financial Aid to Improve Transport at the Local Authority Level), which can be used to partially fund local rail transport infrastructure in densely populated areas. Both the payments from this federal programme and those from the unbundling legislation will only be available until and including 2019 as a result of the reform of the federal system. The coalition agreement provides for reliable follow-on financing for the federal programme under the above-mentioned act. On 24 September 2015, the federal and Länder governments decided to continue the same level of funding for the act beyond 2019 as part of the new regulations on financial relations between the federal and Länder governments. Furthermore, under the current budget, federal funds for investment in rail infrastructure will continue to rise over the next few years. The aim is to use the funds to upgrade the rail infrastructure, which will also be of benefit for long-distance passenger transport. The German government continues to support the nationwide introduction of e-tickets and an improved passenger information system to make public transport more attractive. Three workshops on the dialogue and stakeholder process on digital networking in public transport have been held thus far. Another expert workshop will be held in November Furthermore, as part of the funding guideline on electromobility published by the Federal Ministry of Transport and Digital Infrastructure on 8 June 2015, projects to develop and implement local authority electromobility strategies are funded, including those focusing on public transport.

54 54 Climate action report Promotion of alternative drives systems in local public transport The measures to make passenger transport climatefriendly will also include a continuation of support for transport companies in purchasing hybrid-drive buses. As part of the new funding guideline published by the Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB) (term: 2015 to 2017), the procurement of externally chargeable plug-in hybrid buses will also be supported. The first funding applications have already been approved Strengthening cycle and pedestrian transport The main objective of the measure to strengthen cycle and pedestrian transport, which is also a part of making passenger transport climate-friendly, is to further develop the cycle transport system and link it up with other modes of transport through investment and communications measures. The federal government s task here is to create the underlying conditions needed to further develop cycle transport. It therefore promotes cycle transport as part of its legislative responsibilities. As part of the National Cycle Paths Plan, the federal government plays a key role as moderator, coordinator and source of new ideas. Under certain conditions, towpaths on federal waterways can also be upgraded to make them suitable for cycle transport. The current call for projects for the National Cycle Paths Plan (NRVP) for the 2016 funding year is seeking project proposals and ideas, in particular those that focus on electromobility and bikes and the space they interact with. The new NRVP model projects are scheduled to start in the spring of On the provision that local authorities contribute half the financing and assume responsibility for traffic safety, tow paths on federal waterways can also be upgraded to accommodate cycle transport. As part of the amendment to the local authority guideline, the question of whether additional funding can be made available to local authorities to strengthen cycle transport is being considered. Furthermore, funding to build cycle paths on trunk roads is also likely to be increased Promoting corporate mobility management The aim of the decision to promote corporate mobility management is to make commuter journeys and journeys to work highly sustainable. The development of strategies for doing this is therefore to be supported through a BMUB and BMVI funding guideline. The basic funding programme is currently being developed, so that work on a funding guideline can begin shortly, with the aim of publishing it in the first half of 2016.

55 Climate action report Fuel-saving driving techniques (cars/hgvs) A number of different measures can also be used to encourage fuel-saving driving techniques both for cars and heavy goods vehicles. The main ones include: Funding fuel-saving training courses, and Funding and investment programmes for installation of dashboard displays showing consumption and when to change gear, and speed governors for HGVs (Heavy goods vehicle) Talks are to be held with the relevant stakeholders on implementation of these measures (e.g. the motor and insurance industry, association of driving instructors, the ADAC (motorists organisation) and the VCD [green automobile association]). A project is currently being prepared which is meant to examine the various options in this area: funding fuelsaving training courses, investment programmes for installation of dashboard displays showing consumption and when to change gear, and speed governors for HGVs. Similarly, initial talks with the stakeholders mentioned above have already been held Car Sharing Act The measures to make passenger transport climatefriendly include supporting car sharing, especially in densely populated areas. For example, the coalition agreement for the 18 th legislative period includes the mandate to make it possible to give preferential treatment to car sharing. Specifically, the legal conditions are to be created to make it possible to designate special car sharing bays or make vehicles used for car sharing either completely exempt from parking charges or eligible for lower parking charges Increased use of electric drives in vehicles The German government believes that increasing electrification of vehicle drives in passenger and freight transport is of key importance in reducing CO 2 emissions in the passenger and freight transport sector in the medium and long-term. It is therefore looking intensively into possible funding instruments Special depreciation allowance for commercial electric vehicles Supporting the introduction and rapid market penetration of electric vehicles is important in the view of the German government. It is therefore currently looking intensively into all possible funding instruments, including a special depreciation allowance for commercial customers. On 10 July 2015, the Bundesrat passed a decision to bring a bill on introducing special depreciation allowances for electric vehicles before the Bundestag (BR- Drs. 114/15). The measures in the bill need to be examined in more depth by the government with regard to their scope and reach and technical details Charging stations A German government decision indicates that it will establish essential infrastructure (charging stations) as a key contribution to promoting the expansion of electric vehicles. The Charging Point Ordinance creates mandatory plug standards for the charging infrastructure for electric vehicles. It is likely to enter into force in 2016, once it has been discussed in the Bundesrat. Furthermore, operators of charging infrastructure and final consumers are to be treated equally under the Electricity Market Act. This will create legal clarity with regard to operators energy-related obligations. Under a research project instigated by the Federal Ministry for Economic Affairs and Energy known under its German acronym SLAM, which is concerned with setting up a rapid charging network for major axes and cities, up to 600 additional rapid charging points are to be established between 2015 and 2017; 67 charging points already exist.

56 56 Climate action report 2015 The research project also includes developing and carrying out scientific studies on locations and operator models for rapid charging points, developing a golden test device and a standardised payment and accounting system. The rapid charging infrastructure for electric vehicles is also scheduled to be installed on 400 motorways service stations if possible by The first three rapid charging points went into service at the Köschinger Forst service station on the A9 motorway in September Field trial on electric drives in heavy commercial vehicles To date the use of electric drives in heavy commercial vehicles has been very restricted by their limited battery capacity, which reduces the vehicles range. By combining fast charging batteries with sections with overhead contact lines to recharge the batteries when the vehicle is being driven, the range of uses for electrical drive vehicles can be significantly extended. A field trial will test this combination of battery-powered HGVs and an overhead contact line section under realistic conditions. The funding announcement for the BMUB s renewably mobile programme, scheduled to be published before the end of 2015, includes an invitation to submit project outlines Procurement campaign for electric vehicles information campaign In addition to the measures to increase their use mentioned above, the German government believes it is necessary for the public sector to lead by example and increase public acceptance of electric vehicles. To put this belief into practice, the government will start by launching an information campaign in conjunction with the Länder with the aim of increasing the share of electric vehicles in the public sector s vehicle fleets. As part of this campaign, a procurement conference has already been held in 2015, organised by the joint Electromobility Office. Other activities will take place as part of the Alliance for Sustainable Procurement and the Electromobility Showcase and are currently being prepared. The aim is to send out a package of information on procurement of electric vehicles put together by the Alliance for Sustainable Procurement at the beginning of The question of whether financial support for procurement can be provided to government agencies at federal and Land level is also being considered. An evaluation of the project outlines and an invitation to submit applications are scheduled for 2016.

57 Climate action report Cross-cutting measures in the transport sector Mobility and the federal public administration A mobility management scheme is an approach to influencing transport demand within the federal public administration with the aim of making transport efficient, environmentally and socially acceptable, and therefore sustainable. This can be achieved using soft measures such as information, communication, motivation, coordination and service, or through financial incentives. The aim is to establish a mobility management scheme in the federal public administration, along with a standardised and certified procedure for planning, implementing and evaluating mobility management measures. As well as reducing environmental pollution, government agencies could also make cost savings by promoting energy-efficient vehicles, environmentally sound mobility in the daily journeys to work of their employees and more particularly in official business trips, for example. Information about specific measures in the federal public administration can be found in the State Secretaries Committee for Sustainable Development s programme of measures of 30 March The activities focus on financial incentives for climatefriendly mobility. The possibility of creating greater incentives to use environmentally friendly modes of transport is being reviewed. Furthermore, the conditions for video conferencing are to be improved, mobile working, employer-subsidised local transport season tickets expanded and the use of company bicycles supported. A project will prepare implementation of the package of measures. The contract award procedure is currently being prepared Extension of tax concessions for natural gas and liquefied petroleum gas vehicles beyond 2018 The Climate Action Programme 2020 incorporated the idea of extending the promotion of natural gas and liquefied petroleum gas as fuel, which had been included in the coalition agreement and the government s mobility and fuel strategy. Promoting natural gas and liquefied petroleum gas as transport fuel beyond 2018 had already been an element of the mobility and fuel strategy adopted in mid In this the government of the time announced it would examine whether, and under what conditions, it would be appropriate to conditionally extend the concessions on energy tax. In the meantime, in its 115 th session on 2 July 2015, the Bundestag adopted by majority vote the motion tabled by the CDU/CSU and SPD parliamentary parties from Bundestag publication 18/5378 entitled Extend energy tax concessions for natural gas and liquefied petroleum gas With this, the Bundestag sent out an important signal to companies and consumers that it acknowledges gasfuelled vehicles as an important element in the energy transition in the transport sector. The motion mentioned above also sets out the next steps. The findings of the research project on developing energy tax revenue in the transport fuel sector and considerations of tax concessions and other measures to promote natural gas and liquefied petroleum gas, which was commissioned by the Federal Ministry of Finance, are to be submitted to the Bundestag by 15 December 2015 and the German government is to present a bill at the latest in spring The report was also mandated to describe the costs of extending energy tax concessions for natural gas and liquefied petroleum gas. To ensure the measures to finance these concessions are in place, which can only be undertaken on the basis of a realistic assessment of the financial effects of extending them, it is important to ensure the analysis is precise. On this basis, a further requirement was that the report includes proposals for an appropriate degressive rate of concessions, possibly differentiating between LPG and natural gas.

58 58 Climate action report Supporting climate change mitigation in international maritime transport Climate change mitigation measures in international maritime transport still cannot be counted towards national reduction targets. The German government has nevertheless included two measures in this field in the Climate Action Programme 2020 in order stress to the important role maritime transport plays in international climate action Monitoring, reporting, verification A core element of this measure is a programme to monitor introduction of the EU system for monitoring, reporting, and verification (MRV) of CO 2 emissions from maritime transport and to support the introduction of a measure at IMO (International Maritime Organization) level to reduce CO Climate change mitigation measures in air transport Single European Sky The Single European Sky programme was implemented in 2004 as a response to the liberalisation of the aviation market in 1993 and the continuing increase in flight numbers anticipated. The creation of standardised and harmonised European air space was intended to improve aviation, including its efficiency. The ambitious technological changes sought were analysed by the Single European Sky ATM Research (SESAR) 1 Programme; now SESAR 2020 is tasked with developing a completely new European air traffic management system. Financing is currently being explored at EU level. The International Civil Aviation Organization (ICAO) is developing a global market-based measure to limit CO 2 emissions from international aviation, which is scheduled to be completed by 2016 and to enter into force in The ICAO is also working on a CO 2 standard for aircraft. The MRV regulation entered into force in mid-2015 and will now be implemented at European level Alternative fuels and LNG Furthermore, demand for Liquefied natural gas (LNG) is to be increased and more climate-friendly alternative fuels supported through measures to promote, for example, new maritime vessels being appropriately equipped or existing vessels retrofitted. Individual projects have been identified and are currently being evaluated. At the same time, a funding guideline is to be developed as a basis for awarding funding from 2016 onwards Other measures in the transport sector Another key element in reducing CO 2 emissions in the transport sector is to drive forward the development of the European framework. Thus, for example, the aim of Regulations (EU) 333/2014 and (EU) 427/2014 was to set new fleet-wide average targets for cars and light duty vehicles. As a result, the EU new vehicle fleet has to comply with emission limits of 95 g CO 2 /km (cars) from 2021 and 147 g CO 2 /km (light duty vehicles) from Target values for individual manufacturers are based on the EU targets. Exceeding these targets can incur substantial fines.

59 Climate action report Reducing non-energy-related emissions in industry and in the commerce/trade/services sector Below is a description of measures to reduce nonenergy-related greenhouse gas emissions in industry and the commerce/trade/services sector, which were adopted by the German government in its Action Programme 2020, along with details of their implementation status. Efficiency measures to reduce energy-related emissions in these sectors are dealt with in Section 5.5 on the National Action Plan on Energy Efficiency Strengthening waste avoidance, recycling and reuse Waste avoidance and recycling are key strategies in resource conservation, which in turn helps to reduce greenhouse gas emissions. Initial plans include strengthening recycling by drafting a Recyclables Act, amending the Commercial Wastes Ordinance and fast-tracking the substitution of primary by secondary materials. Furthermore, avoidance measures are to be developed as part of the national waste avoidance programme. The amendment of the Commercial Wastes Ordinance announced in the Climate Action Programme 2020 is scheduled to enter into force in The Recyclables Act is currently being drafted by the Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety, which is the lead agency. To prepare implementation of the waste avoidance programme a number of dialogues were carried out with stakeholders as part of a UFOPLAN project. In addition to the regulatory approaches mentioned above, other approaches both for final consumers and manufacturers are to be taken forward to increase the intensity of use (e.g. lifetime optimisation, reuse and facilitation of reuse, and shared use of products). There are also plans to support community initiatives concerned with developing alternative ways of using products, including shared use Reducing F-Gas emissions Other gases as well as CO 2 contribute significantly to climate change. Continuing to reduce emissions of fluorinated greenhouse gases (F-gases), which have a significantly higher global warming potential than CO 2, is therefore an important part of this Action Programme.

60 60 Climate action report Implementation of the EU F-gas regulation and preparatory/flanking measures At European level, the EU F-gas regulation (no. 517/2014) was an important step towards further reducing emissions of these gases. However, in the main the regulation will not be effective until after Further measures are therefore necessary to achieve additional effects up to They include preparatory and flanking measures to ensure effective implementation of the EU F-gas regulation ahead of schedule. In particular, technological developments and planning decisions are to be strengthened in order to avoid lock-in effects. This includes above all compiling technical resources (e.g. studies, specialist publications) for the areas in which natural refrigerants can be used, appropriate strengthening of technical advice for planners, investors and operators provided by specialist firms, and training and continuing professional development for technical personnel. Key technical resources were developed, for example on the areas of application for flammable refrigerants in 2015, so that practical implementation programmes (e.g. training courses, advisory centres) will most likely be established before the end of Continuation and adaptation of the funding programme for commercial refrigeration and air conditioning units Furthermore, the National Climate Initiative s existing funding programme for measures connected with refrigeration and air conditioning units was also amended in The first step was to expand the target group: as well as companies, local authorities, churches and non-profit organisations can now also apply for funding. Advisory services by experts were already eligible for funding. This "minor amendment" entered into force on 1 October Since 1 September 2015, work has been ongoing to draft a "major amendment" of the guideline, which is set to be implemented in the course of Its principal elements are: Continuation of the funding programme and regular modification of the funding conditions Examination of the possibility of increasing funding Introduction of an advisory component to eliminate obstacles to using systems with natural refrigerants, and Extending the programme to climate-friendly mobile refrigeration and air conditioning units Increasing resource efficiency Resource-efficient production technologies and practices can make a significant contribution to avoiding environmental pollution and greenhouse gas emissions. Implementation of the measure to increase resource efficiency includes once more commissioning the VDI Centre for Resource Efficiency up to 2019 to continue and expand the provision of information for SMEs to enhance the diffusion of knowledge about resource-efficient technologies and practices, expand and reinforce resource efficiency networks and strengthen and possibly expand and increase funding for existing research programmes concerned with resource efficiency. The specifics for an existing idea for a project to expand and reinforce resource efficiency networks are currently being worked out. Implementation is scheduled for mid-2016.

61 Climate action report Waste management and circular economy measures; other emissions Aeration of landfills to reduce methane emissions By aerating closed landfills, biologically degradable waste undergoes microbial oxidation. Instead of being converted into methane, which is what happens during anaerobic degradation, the biogenic carbon in the waste is converted under aerobic conditions into carbon dioxide, which is biogenic in origin and therefore greenhouse-neutral. The landfill s potential to form methane is correspondingly reduced. Even before the Climate Action Programme 2020 was adopted, the German government had been funding aeration of landfills. Due to the positive experience gained, it therefore decided in December 2014 not only to continue the measure but to extend it to more landfills, particularly larger ones. The local authority guideline was revised to incorporate this, so that funding applications can be made from the third quarter of 2015 onwards Agriculture The measures relating to agriculture adopted by the German government do not primarily apply to CO 2 but to other greenhouse gases such as nitrous oxide (N 2 O) Amendment to the Fertiliser Application Ordinance The use of nitrogen fertilisers in agriculture causes direct N 2 O emissions from the fertilised soil and indirect N 2 O emissions as a result of reactive nitrogen compounds (mainly ammonia) being released from agricultural land. In addition to this, their production causes greenhouse gas emissions resulting from the energy needed and their transport. These emissions are not accounted for in the agriculture sector. The amendment to the Fertiliser Application Ordinance aims to improve nitrogen use efficiency and reduce nitrogen surpluses and in this way help to reduce N 2 O emissions. This also makes a significant contribution to the aim expressed in the German government s sustainability strategy of reducing the nitrogen surplus on agricultural land and in livestock housing to 80 kg N/ha. The draft for the amendment to the Fertiliser Application Ordinance is in the final phase of interministerial consultation. The next stages planned are notification to the EU Commission and carrying out a strategic environmental assessment.

62 62 Climate action report Increasing the percentage of land that is organically farmed The German government s national sustainability strategy states that 20 percent of agricultural land should be organically farmed in future. The main reason that organic farming causes few greenhouse gas emissions is the fact that it does not use mineral nitrogen fertilisers. The measure that was adopted by the German government as part of its Climate Action Programme aims to continue to focus on the details of how to promote organic farming at Länder level within the strategic plan of the Federal Government/Länder Joint Task for the Improvement of Agricultural Structures and Coastal Protection (GAK) and on carrying out its programme to promote organic farming and other forms of sustainable agriculture (BÖLN). To this end, the Planning Committee for Agricultural Structures and Coastal Protection (PLANAK) took a decision in 2014 to increase payments for organic farming (funding category 4: land management tailored to the market and to the individual site in the GAK strategic plan 2015 to 2018). The land payments for organically farmed land were increased by up to 24 percent from their 2013 level. Furthermore, the existing programme to promote organic farming and other forms of sustainable agriculture focuses on the following priorities: Identify what research is needed, instigate and support research projects, process the knowledge gained in a way appropriate for each target group. Use training and information schemes and competitions to support the supply and demand for organically and sustainably produced products. Support the agriculture sector in providing information services and organising stands at trade shows to promote organic farming and other forms of sustainable agriculture. A future strategy is currently being developed designed to boost the growth of organic farming in Germany.

63 Climate action report Land use, land use change and forestry CO emissions from agricultural land and CO sinks are 2 2 not included in the analysis of progress towards national and European climate targets. There is, however, considerable potential for reducing the amount of greenhouse gases released in this sector. In December 2014, the EU Council adopted a decision that emissions in this sector will in future be included in climate targets Conserving permanent grassland When permanent grassland is ploughed up, soil organic matter is lost along with the carbon held in it, which is released as CO 2. Furthermore, the increased mineralisation of the soil organic matter causes nitrogen to be released, which in turn causes nitrous oxide emissions. Ploughing up permanent grassland releases far greater quantities of greenhouse gases more rapidly than newly created grassland can sequester. The federal government has therefore decided to work with the Länder to conserve permanent grassland by implementing the decisions taken under the Common Agricultural Policy and by making it a priority when it comes to the fleshing out the details of agro-environmental measures and climate action at Land level. From 2015, conservation of permanent grassland will be regulated within the EU s new agricultural policy under legislation on what is known as greening (Regulation (EU) No. 1307/2013). EU member states must ensure that the ratio of permanent grassland to the total agricultural area must not fall by more than five percent compared to the reference year. Germany s primary and secondary legislation on direct payments implementing this (Direktzahlungen-Durchführungsgesetz and Direktzahlungen-Durchführungsverordnung) created the legal conditions that entered into force on 1 January 2015 prohibiting conversion and ploughing up of permanent grassland situated within Habitat Directive sites. Permanent grassland that is situated outside Habitat Directive sites and was created before 2015 may, subject to a permitting procedure, be ploughed up, but only if this is not precluded by other legal provisions and on the condition that replacement land is sown to permanent grassland. There is also the possibility of participating in voluntary agro-environmental measures and climate change mitigation activities that make an additional contribution to conserving permanent grassland. Agreements can be concluded throughout the entire 2014 to 2020 EU funding period. The decision taken by the Planning Committee for Agricultural Structures and Coastal Protection (PLANAK) of August 2014 therefore provides for higher payments for particularly sustainable practices on permanent grassland (funding category 4: land management tailored to the market and to the individual site in the GAK strategic plan 2015 to 2018, agricultural measures and climate action). Its priority areas are: Extensive use of permanent grassland Extensive management of permanent grassland Extensive management to conserve grassland vegetation that contains valuable plant genetic resources. The Länder are responsible for issuing permits and carrying out checks to conserve grassland and for implementing agro-environmental measures and climate change mitigation activities. The Federal Ministry of Food and Agriculture is currently developing a national grassland strategy.

64 64 Climate action report Peatland conservation Greenhouse gas emissions from drained peatland can be reduced by increasing the water level. Almost complete rewetting of peatlands makes it possible to reinstate their carbon storage function. This also has significant positive effects on the water balance and biodiversity. For that reason, the German government has set itself the goal of reaching an agreement with the Länder, based on a position paper of November 2012 by the Federal Government/Länder Working Group on Nature Conservation, Landscape Management and Recreation (LANA). It is the responsibility of the Länder to implement peatland conservation programmes. Measures that are supported by the Federal Government/Länder Joint Task for the Improvement of Agricultural Structures and Coastal Protection (GAK) are jointly financed by the federal government and the Länder and can contribute to peatland conservation. To date, the maximum payment for permanent conversion of arable land into permanent grassland was 644 euros/ha. From 2015, this was markedly increased to 1,690 euros/ha. When particularly environmentally friendly seed mixes that are appropriate for the site are used, the payment can be as much as 2,210 euros/ha. This means that there is now a significant incentive to reduce emissions arising from the use of organic soils. Other particularly sustainable practices on permanent grassland are listed under group of measures D and can contribute to extensive use that conserves peat. They include: Zero tillage Stop using mineral nitrogen fertilizers Low livestock density Delay putting livestock out to graze in spring by two weeks Defer cultivation measures by four weeks In particular the last two points listed can ensure higher groundwater levels in the spring. Furthermore, model projects on protection, conservation and renaturation of peatland in forests are funded through the Forest Climate Fund (Waldklimafonds).

65 Climate action report The government s role in demonstrating best practice Public procurement: strengthening the Competence Centre for Sustainable Procurement and the Alliance for Sustainable Procurement The federal government, Länder and local authorities have been working together in the Alliance for Sustainable Procurement, which is chaired by the federal government, since It provides the opportunity to share experience and is meant to help significantly increase the percentage of sustainable products and services purchased by the public sector. Progress reports are published at regular intervals giving information about the findings of the Alliance for Sustainable Procurement. The Competence Centre for Sustainable Procurement was set up based on the outcome of an extraordinary meeting of state secretaries on 21 October 2011 and of the meeting of the State Secretaries Committee on Sustainable Development on 31 October Its mandate and aim is to provide information and advice to the procurement departments of the federal government, Länder and local authorities on sustainable procurement issues. The Competence Centre for Sustainable Procurement maintains a web-based information platform with tools for procurement departments. It also works in a number of different bodies and offers training in sustainable procurement The German government s programme of sustainability measures The programme of sustainability measures aims to make the federal public administration more sustainable. It applies to all agencies and institutions that are directly part of the federal public administration. The programme of sustainability measures, which dates back to 2010, has now been taken forward based on the decision of the State Secretaries Committee on Sustainable Development of 30 March By working towards a climate-neutral federal public administration, the German government is making an active contribution to climate change mitigation. The programme includes measures relating to federal buildings, the introduction of energy and environmental management system, as well as measures concerned with sustainable procurement and mobility. To make progress visible, there are plans to systematically collect data on CO 2 emissions for federal buildings and mobility and explain the changes from the previous year. The first monitoring report on the programme of measures is due for publication in Climate-damaging subsidies On 28 January 2015, the federal cabinet added a commitment to carry out a sustainability assessment and step up the evaluation of subsides to its guidelines on subsidy policy. The sustainability assessment that is carried out as part of the German government s subsidy report is essentially based on the goals of the national sustainability strategy and concentrates on considering the long-term economic, environmental and social effects of subsidies. In compliance with the Climate Action Programme 2020, climate change mitigation aspects will also be taken into account. The findings of this assessment were documented for the first time in the 25 th subsidy report adopted by the Federal Cabinet on 26 August The German government s climate policy decision of 3 December 2014 states that in continuing the measures special attention must be paid to sustainability concerns. The German government s subsidy report is published every two years Drawing up energy-efficient refurbishment timetables for the public sector The decisions taken under the Climate Action Programme 2020 stipulate that greater efforts must be made to tackle the energy-efficient refurbishment of public buildings. The reason for this is, on, the one hand, that given the public sector s role in leading by example it sends out a signal that affects what happens with private buildings. However, it can also significantly increase the acceptance for refurbishment activities in the non-residential building sector and encourage their more widespread implementation. A draft energy-efficient refurbishment timetable for buildings owned or used by the federal public administration is currently being discussed within the German government. It provides for energy strategies to be developed for all buildings that the preliminary work on drawing up the timetable identified as being in need of refurbishment. On the basis of these energy strategies,

66 66 Climate action report 2015 specific energy-efficient refurbishment work will be carried out over the next few years. Refurbishment timetables are also to be drawn up for buildings belonging to the Länder and local authorities. They will, wherever possible, be based on those for federal buildings. The federal government will use its experience in drawing up refurbishment timetables for its own buildings to support the Länder and local authorities. However, this will only be possible after the strategy has been drawn up at federal level hence in 2016 at the earliest Implementation of sustainability assessment systems at Länder, local authority and federal government level Under a decree of 5 July 2013, the federal building authorities in the Länder are responsible for organising the certification of buildings using the federal Assessment System for Sustainable Building (BNB) as of 1 January This had previously been the responsibility of the Federal Institute for Research on Building, Urban Affairs and Spatial Development (BBSR). The Länder have put the necessary organisational measures in place and assigned some of the tasks of the compliance authorities to the supervisory tiers of the administration. Regular user meetings organised by the compliance authorities are intended to ensure uniform conduct throughout Germany in the continued implementation of the Guideline for Sustainable Building. The first meeting was held in October 2015, headed by the Federal Institute for Research on Building, Urban Affairs and Spatial Development. Furthermore, events jointly organised by the Länder and local authorities to implement assessment systems are planned. One event was held in Cologne in September Länder and local authority entities are regularly incorporated into the political and technical implementation process through the round tables on sustainable building," held at the Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety Research and development We will continue to need innovative input from the scientific community in the future not only in order to be proactive and take appropriate measures to put Germany on the right path towards being a carbon-free society but also in order to identify ways that will enable us to recognise the consequences of climate change and be in a better position to deal with it. In its decision on the Climate Action Programme 2020, the German government therefore declared its intent to redouble its efforts in the following types of research: Research for the energy transition Research into preventing climate change Socio-ecological research, and Applied research in the urban design and buildings sector Research for the energy transition Innovative energy technologies and policies are crucial to the success of Germany s energy transition. Energy research is thus a strategic instrument of energy policy. Government research funding is based on the federal government s 6 th energy research programme. It is geared to the energy transition and takes a transdisciplinary approach to enable it to respond adequately to the complexity of this ambitious cutting-edge project. Numerous coordinated measures cover both long-term basic research and also application-focused energy research: Research and innovation is a platform for the energy transition; it advises on the creation and further development of energy research programmes (ongoing). Activities within the energy transition research forum, such as funding what are known as Kopernikus projects aimed to develop the technologies and systems needed to implement the energy transition through to industrial-scale applications.

67 Climate action report Cross-ministerial funding initiatives on future grids and energy storage systems are working on developing the grid infrastructure and storage elements within the energy system. Materials research for the energy transition, designed to facilitate the breakthroughs needed to develop new materials. Here, applications-focused basic research provides constant contributions to developing innovative technologies and transforming the energy system in a socially acceptable way. Applications-focused energy research looks into technologies and policies along the entire energy chain from conversion, transport and distribution through to the efficient use of energy in various sectors, including the buildings sector and industry. The new research networks on selected topics (thus far: efficient buildings, grids, systems analysis) drive forward communication among stakeholders and accelerate the transfer of results into practice. The Kopernikus projects also create a new format designed to take a tighter focus in linking subjects and results of basic research with industry, facilitate industrial-scale application, and implement them with the involvement of all social groups. For that reason, an invitation to apply for funding for Kopernikus projects was launched in Furthermore, at the end of the first quarter of 2016, a status seminar will be held on whether the country s electricity grids are fit for the future. Currently, the third funding initiative on solar building design/energy-efficient cities and a funding initiative to put the city of the future into practice are in the preparatory stage. The third funding phase for materials research for the energy transition will also be launched in Research into preventing climate change Research into preventing climate change aims to close high-priority gaps in knowledge on climate change, build practically effective capacity in using that knowledge and develop the innovation dynamics needed to drive sustainable growth. Implementation takes place, and thus contributes to climate change mitigation, in the following three priority fields of action: National climate modelling initiative Regionalisation of climate knowledge Integrated evaluation method for climate policy and innovation Research into preventing climate change has been firmly established as a component of the Research for

68 68 Climate action report 2015 Sustainable Development programme (FONA3). It defines the above-mentioned research goals and priority fields of action. On this basis, funding measures and other activities are devised and implemented in all three fields of action. The Federal Ministry of Education and Research (BMBF) has already been able to instigate numerous processes subsequent to the decisions on the Climate Action Programme Worthy of mention here is the process of dialogue on the economy of climate change, the findings of which will be available before the end of It will be followed up by a funding announcement on the economy of climate change. In addition to this, a funding measure on changing urban climates was launched in the first quarter of It is complemented by a measure dealing with climate action in cities and regions, which is part of a FONA3 flagship initiative on the City of the Future, which began in the last quarter of A research initiative on paleoclimate modelling was instigated in mid-2015 to further improve the knowledge base on climate change and our ability to model it and hence improve our predictions. The recently launched phase II of the funding measure on developing medium-term climate predictions will also be able to make a significant contribution to improving climate predictions, especially now that the supercomputer at German Climate Computing Centre in Hamburg has been inaugurated. In 2015, the Federal Ministry of Education and Research (BMBF) also prepared a funding measure in the field of climate services in conjunction with other European partners. It is scheduled to start in Socio-environmental research Socio-environmental research is concerned primarily with the processes of change and transformation in society involved in achieving the ideal of sustainable development. The BMBF established this as a funding priority back in It generates knowledge on key elements of sustainability transformation such as the energy transition, sustainable urban and rural development, climate change mitigation and adaptation, and the green economy. Fostering young talent is an important aspect here, with groups of young researchers working on the topics mentioned above. To date, around 130 socio-environmental research projects were funded in over 12 funding measures with a volume of approximately 120 million euros. Currently, a number of funding measures are contributing to mitigating climate change in this field: 33 projects that collaborated with the scientific/academic community and practitioners to develop options for developing the energy system, governance measures designed to sustainably transform the energy system, and proposals for involving the public in the transformation process. The interim results of the projects were presented in mid-september At the same time, the kick-off event for 30 projects on the green economy took place. Climate-relevant aspects, such as energy efficiency, also play a role in the project. The kick-off event for the six European collaborative projects on climate change took place back in June New announcements were also published for young researcher groups (for which all topics are eligible for support) and for sustainable transformation of urban space in February and April 2015 respectively.

69 Climate action report Environment, Nature Conservation, Building and Nuclear Safety s funding guideline on the award of grants to projects under the Zukunft Bau research initiative entered into force in the first half of The applications, which had to be submitted by mid-september 2015, are currently being evaluated so that suitable projects will be selected by a panel of experts in the first quarter of Within the research network on energy in buildings and neighbourhoods, the conditions are being created to coordinate programmes on energy-related topics. This is designed to avoid duplication and identify areas where synergies can be exploited Advice, public education and independent initiatives to step up climate action Climate change mitigation in business The measures described below in the field of climate change mitigation in business aim to remove obstacles to the private sector becoming more involved in combating climate change, while at the same time strengthening and making greater use of innovation potential in German business. The principal measures here are: Strengthening applied research in the urban design and buildings sector Another concern of research and development under the Climate Action Programme 2020 is to support small and medium-sized companies in developing and optimising innovative products and technologies. Since the building sector is a mainstay of climate policy especially in the light of the goal to achieve a climate-neutral building stock by 2050 the intent here is to gear research to strategies and concepts for sustainable building. Particular attention will be paid to taking forward the Zukunft Bau research initiative. Its priorities are funding research and development in the building sector and within the entire construction value chain in general but also specific projects such as model projects concerned with the Efficiency House Plus standard. In the course of implementing measures under the Action Programme, the Federal Ministry for the A dialogue process entitled Business takes action on climate change Climate check-ups for micro businesses and Measures that are earmarked for more funding under the Environmental Innovation Programme Dialogue process: Business takes action on climate change Communication and cooperation are not measures that have a directly quantifiable effect on the climate but they are nevertheless useful in creating points of access and thus a willingness particularly on the part of businesses on the basis of which obstacles can be eliminated, enabling businesses to take further climate action. With this in mind, the German government took a decision under the Climate Action Programme 2020 to launch a dialogue process with business with a view to

70 70 Climate action report 2015 eliminating any existing obstacles and thus ultimately achieving an accelerated implementation of specific measures to reduce greenhouse gases. An invitation to tender for the design phase of the dialogue process was issued and the contract is scheduled to be awarded before the end of The first results will therefore be available towards the end of the first half of National Climate Initiative (NKI) climate check-up for micro businesses In addition to the dialogue process mentioned above, the German government has also decided to raise awareness for the possibility of doing more for the climate, especially among small businesses. With that in mind, a new pilot project and a new funding guideline were launched under the National Climate Initiative. The aim is to approach micro businesses about the possibility of their putting measures to mitigate climate change in place in their companies and in particular directly implementing small-scale measures on the ground. This could include depending on the trade or particular company in question specific measures to increase the efficiency of technical applications or to reduce material and water consumption and waste. The pilot project, which is currently in the application phase, will include developing an information and advice scheme and testing it across selected trades, such as bakers, butchers, chemists, car repair businesses and hairdressers. The aim of the pilot phase is to gather information that can be used to flesh out a funding guideline that will be addressed to more trades and is scheduled to start in Environmental Innovation Programme Demonstration projects implementing an innovative environmentally friendly technology on an industrial scale for the first time are funded under the Environmental Innovation Programme. In this way, the programme helps to bring progressive technology to the market and contributes to implementing the Climate Action Programme. Up to 2018, more funding will go to demonstration projects that focus on climate change mitigation and a funding initiative for innovative demonstration projects concerned with using industrial waste heat is under consideration.

71 Climate action report Consumer action on climate change (prioritising electricity saving) Many of the above-mentioned measures under the Climate Action Programme address initiatives concerned with developing regulatory provisions and funding activities undertaken by the German government in sectors that have only an indirect effect on consumers especially if the main focus of the measure is on electricity as delivered energy. However, in addition to the numerous measures concerned with buildings and housing that are directly addressed to consumers (compare Section 5.6), and that prioritise heating, there are plans to direct further measures specifically at consumers in the area of delivered electricity Electricity savings check The German government is focusing particularly on low-income households for whom measures that require even a minimal level of investment are often beyond their budget. For that reason, the decision was taken under the Climate Action Programme 2020 to consider how to continue the scheme providing situation-specific advice and financial support for low-income households to purchase energy-saving, resource-efficient technology (large household appliances) on a needs basis. The plan is to involve the same kinds of agency as to date, i.e. social welfare organisations, charities, and energy and climate action agencies. In this connection, the question is also being reviewed as to whether and to what extent it is possible to embed the programme more fully in local authorities and bundle it with other programmes concerned with funding urban development (e.g. the social city programme) Electricity saving campaign The aim of the electricity saving campaign is to motivate as many private households in Germany as possible to exploit their energy-saving potential and save electricity. This will enable private households to lower their energy costs in the long term but the climate will also benefit from the energy savings and Germany s dependence on imported energy will decrease as a result. The electricity saving campaign is an initiative run by the Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety, which was funded until It is supported by participants in the round table which brought together from the very outset not only welfare and consumer protection associations, churches and local authority associations but also the Federal Employment Agency (Bundesagentur für Arbeit) and energy industry and energy technology business associations. The question of how to continue the initiative is currently being considered Climate action in schools and educational establishments The Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety s Education Department runs the Climate Action Programme in Schools and Educational Establishments, which was launched in It is an umbrella programme for a diverse range of education projects that are funded under the National Climate Initiative. The BMUB uses the programme, on the one hand, to provide information on climate change and raise awareness about the need to take action and, on the other hand, to inspire and implement specific activities designed to make CO 2 savings. This takes place through practice-based projects, action days and campaigns and is backed up by educational resources for the classroom, interactive learning opportunities and competitions. In 2015, eight educational projects were funded under the National Climate Initiative; two of them have recently been concluded. One was concerned with organising events for schools about government and EU funding for energy efficiency and the other involved 500 schools instigating climate change projects by linking up with others in their local community. A number of other projects will continue to run until They cover a broad range of activities such as giving school students information about degree courses and jobs involving climate action, funding artists to work with schools on climate change, offering GPS-guided mobile learning activities, or involving students in schools built to the Passive House standard in learning about how their building works.

72 72 Climate action report Activities undertaken by the Länder, local authorities and social stakeholders 6.1 Climate action undertaken by the Länder and local authority associations When drawing up its Climate Action Programme 2020, the German government invited the Länder, local authority associations and the Association of German Cities (Deutscher Städtetag) to submit an overview of the climate activities they had started or adopted since November The descriptions submitted by the16 Länder and the German Local Authorities Confederation (Deutscher Städte- und Gemeindebund) have been published on the BMUB s website ( The Association of German Cities and the Association of German Counties (Deutscher Landkreistag) stress their support to help Germany meet its climate targets and implement the energy transition. There are plans to update the overview of the climate activities carried out by the Länder, cities and local authorities when the 2016 climate action report is drafted.

73 Climate action report Social innovation and climate action Social and cultural initiatives, such as participatory local governance schemes and cooperatives, often combine communal and participatory ideas with climate action in areas such as transport (car sharing), building (building groups, multi-generation housing) or renewable energy municipalities. The examples illustrate civil society s ideas for new and creative ways of tackling the problems associated with climate change mitigation. In 2015, the National Climate Initiative and the BMUB s funding for associations made it possible both directly and indirectly to develop and try out social innovations. Research projects also investigate the factors that contribute to the success of social innovations and the options for directing funding to these innovations.

74 74 Climate action report Monitoring implementation of the Climate Action Programme examining the institutional capacity available for continuous reporting and reviewing Some of the work needed for the continuous reporting that is carried out with regard to emissions, projections, policies and measures is performed by the Federal Environment Agency. The primary reason for this work is to comply with the German government s international and European reporting obligations. To ensure this continuous and scientifically sound reporting, which also forms the basis for the German government s climate action reports, the government is considering whether and how it can guarantee the necessary institutional capacity

75 Climate action report The economic impact of the measures under the Climate Action Programme 2020 Systematic climate action that focuses on cost-efficiency, affordability and competitiveness also holds considerable economic potential. For example, it reduces the dependency on importing fossil energy sources and therefore helps to increase the security of the energy supply. It supports the development of new technologies, creates new jobs in many sectors and generates lasting added value. When implementing climate action, it is important not to lose sight of the socio-economic challenges for consumers and business. When introducing and further developing instruments to mitigate climate change, not only their effectiveness but also their efficiency and distribution effects are important decision criteria. The different government departments pay attention to this when fleshing out the measures that come under their jurisdiction. The BMUB has also commissioned a research project to determine with methodological consistency the effect on climate change mitigation and the costs and benefits to the national economy of the measures under the Climate Action Programme To assess the overall effect of the Action Programme, it will pay special attention to synergies across the measures. The research project is still running and its findings are expected in In addition to this, one of the Federal Ministry of Education and Research s ongoing priority funding areas on the economy of climate change makes key contributions to improving the economic assessment of climate policy measures and instruments.

76 76 Climate action report Climate Action Alliance The German government has set up a National Climate Action Alliance, comprising representatives from all groups of society, with the BMUB as lead agency. The aim of the Climate Action Alliance is to support implementation of measures adopted, make it easier to activate potential that is currently rated as not quantifiable and identify further options for action. About 170 representatives from various interest groups and government institutions took part in the Climate Action Alliance s kick-off meeting on 25 March The proceedings are documented on the BMUB website at In order to keep the discussion and work process tightly focused, the Vienna setting established at international negotiations was used, with 15 tables being set up at which the interested organisations chose their places. Each table was allocated places at the alliance s round table that confer the right to speak. There are additional seats for other representatives, but they are not allowed to intervene. The participants occupying the seats that confer the right to speak are selected by the other participants of a single table.

77 Climate action report In its second meeting on 23 September 2015, the Climate Action Alliance held further discussions in the same format on the key issues of climate action in transport and climate action in local authorities. They also discussed the German government s climate action report drafted by the BMUB. The Climate Action Alliance s tables were given the opportunity to comment in writing on this draft and on the implementation status of the measures under the Climate Action Programme The following tables did this 8 : The Länder Representatives of all sectors/industry/the commerce/trade/services sector Energy Buildings/housing industry/private households Waste and other emissions Agriculture and forestry associations Trade unions/social welfare associations Development cooperation Environmental protection, nature conservation and climate action Transport SMEs/crafts and trades Scientific/academic community The comments can be accessed on the BMUB website at ( The German government has incorporated insights gained from the comments submitted by the Climate Action Alliance into its deliberations. 8 The tables representing the local authorities and consumer/tenant protection associations did not submit written comments.

78 78 Climate action report Climate Action Plan 2050 At the end of June 2015, a kick-off conference was held to launch the broad-based dialogue process aimed at developing strategic measures for the Climate Action Plan In five different workshops, possible paths to achieving Germany s climate targets were presented and discussed and views collected across numerous fields of action: the energy industry, industry and the commerce/trade/services sector, buildings, transport, and agriculture/land use. The first round of dialogue comprised three forums held in September and October 2015, at which Länder, local authorities and interest groups discussed what medium and long-term measures within the paths identified might be appropriate for achieving an 80 to 95-percent reduction in greenhouse gases emissions compared with1990 by In November, 500 members of the public considered the same question at five nationwide events. At the end of their dialogue events, all four groups Länder, local authorities, interest groups and the public elected delegates to act as rapporteurs for their forums and develop joint recommendations to the German government on measures to be taken. The government will review the recommendations put forward by these delegate panels and respond in an appropriate form. The plan itself will be reviewed and updated at regular intervals in the years to follow to ensure that the path to meeting the 2050 climate target is met.