Abstract

This article discusses German and European climate policy, inquiring mainly whether the ambitious goals the EU has set itself can be achieved via the instruments presently employed for the purpose and whether these instruments are efficient. In particular we discuss shortcomings of the European emission trading system, we further level criticism at energy policy measures, notably subsidization for renewable energy sources and the overlap with emissions trading. Further we argue that while 20% reduction of CO2 is feasible at a reasonable cost, derived targets such as a share of 20% of renewable energy and 20% efficiency increase is expensive and not necessary. Finally, we scrutinize the latest climate-protection package proposed by Germany’s environment minister.