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THREAD| Draft of the #Climate Change Act, presented by (@bmu) this week: The proposal is a framework law, featuring elements from international acts, e.g. from UK (@theCCCuk). In contrast to the German Climate Action Plan 2050, it will be legally binding. #Klimaschutzgesetz
2| The framework law includes emission reduction targets, defines CO2 budgets for each sector, and clarifies responsibilities, as well as review, transparency & sanctioning mechanisms. Implementation measures for each sector will be detailled in 2030 programmes, due in Mar 2019.
3| Progress will be supported by an independent advisory group of 7 experts. Focus is on reaching the 2030 CO2 reduction targets, but the draft works towards at least 95% reduction by 2050. The remaining 5% to reach #netzero could be reached through compensation policies.
4| Nota bene, the EU's 2030 climate targets are already legally binding for Germany. The domestic targets do not yet go beyond EU legislation. Reaching the targets would simply prevent Germany from paying fines to the EU, mainly in the non-ETS sectors, as currently projected.
5| The new law would assign specific responsibilities for each economic sector, and clarify on payment obligations as part of the public budget. E.g. if the transport sector does not reach its goals, the Transport Ministry would have to pay EU fines from its ministerial budget.
6| The outlined 2030 and 2040 reduction targets (55%, 70%) are in line with the Climate Action Plan. 95% reduction by 2050 is the upper end of the current plan (80-95%) and will likely be subject of heated discussions, along with the mentioned payment obligations.
7| Sectoral targets are broken down into annual CO2 budgets. Deviations will be reviewed annually, and potentially reconfigured to reach overall sector targets. Review moments would allow for a ratcheting up of ambition in a later stage, but not for a reduction of ambition.
8| If targets are missed, government has to present an emergency plan to reach targets in upcoming years. An annual report will make progress in each sector transparent for the public, drafted by the advisory expert body which will also analyze effectiveness of measures taken.
9| Implementation measures will not be detailled in the Climate Change Act. The mentioned programmes of measures will be approved by Cabinet, and translated into existing or new legislation, e.g. the outcome of the Coal Commission will be translated in a new coal phase out law.
10| Programmes of measures will be updated regularly. Notably, public investments are featured as opportunity to "lead by example". Public administration should be climate-neutral by 2030, all government institutions should consider Paris alignment in their investment strategies,
11| and assess the financial risk of investments resulting from climate change (#sustainablefinance). There is however no obligation to change practices ("comply or explain"). Next steps: The government coalition committed to ratify a Climate Change Act by end of 2019.
12| However, Minister Schulze's (SPD) coalition partner (CDU/CSU) has already voiced criticism, calling the draft central planning of the economy, and particularly criticizing the payment obligations per ministry. Intense debates and compromises in various areas are very likely.
13| In additon, the SPD positioning is not yet clear. It will be key to observe to what extent frontbench SPD officials will back the proposal. Overall, this is a strong draft which could help GER get back on track towards #netzero and re-gain a leadership role on climate.
14| Given the difficult political constellation and public discourse, the next months will be key for legislation and implementation. A Cabinet decision is expected by late spring, the parliamentary process could be finalized by EOY, on time for GER EU Council Presidency in 2020.
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