Merz Argues Climate Action Must Not Compromise Germany's Economic Growth

German Chancellor Friedrich Merz has stated that environmental protection measures should be balanced with economic development and industrial competitiveness. Speaking at the Petersberg Climate Dialogue conference in Berlin on Wednesday, Merz emphasized that while Germany remains committed to addressing climate change, policies must be designed to maintain public backing and foster business expansion.

"We want to contribute to a reduction in climate change and Germany will make huge efforts to combat it," Merz told attendees at the international forum.

Balancing Green Goals with Economic Stability

The chancellor stressed the importance of pursuing "multilateral, ambitious and effective" climate strategies that do not undermine industrial sectors or discourage technological advancement. "A transformation which leads to deindustrialization will not be accepted by the public and will ultimately hinder innovation," he warned, while reaffirming Germany's commitment to supporting climate initiatives globally.

Merz's remarks come at a time when environmental advocates have voiced concerns about his coalition government's approach to green policy, citing moves to relax certain environmental regulations.

Clean Energy as Economic Opportunity

The German leader highlighted the economic potential of the clean energy sector, noting that the worldwide market for sustainable technologies is projected to expand to approximately $2 billion (€1.7 billion) by 2035—nearly tripling from current levels.

"Clean energy has become a driver of growth," Merz stated, pointing out that Germany's green-tech industry has expanded 50% faster than the broader economy since 2010.

Emissions Trading System and Industrial Competitiveness

As leader of the conservative Christian Democratic Union (CDU), Merz expressed support for the EU's emissions trading system, describing it as "market-based and technology-neutral." However, he called for revisions to the framework with "a clear focus on maintaining competitiveness" to ensure the mechanism remains "fit for the future."

Established in 2005, the emissions trading scheme functions by capping greenhouse gas emissions and permitting companies to exchange allowances, requiring significant polluters to secure permits for their operations.

Germany's Climate Targets

Germany has committed to achieving climate neutrality by 2045. While Merz has pledged that the nation will fulfill these obligations, environmental organizations have criticized the government for rolling back certain green measures, including advocacy for loosening the EU's ban on combustion engine vehicles and promoting the development of gas-powered electricity facilities.

The Petersberg Climate Dialogue, hosted by Germany annually since 2010 alongside UN climate conferences, is expected to draw ministers representing more than 30 nations.