Germanwatch v. Germany

On November 7, 2024, a coalition of European non-governmental organizations (NGOs) formally submitted coordinated complaints to the European Commission,* seeking the initiation of infringement proceedings against France, Germany, Ireland, Italy, and Sweden for alleged violations of their legal obligations under European Union (EU) law concerning their National Energy and Climate Plans (NECPs). These complaints are supported by evidence demonstrating that the NECPs of the aforementioned Member States are insufficient and fail to comply with the EU’s binding climate and energy targets. The NGOs contend that these plans lack adequate and effective measures to transform the stated commitments into tangible outcomes and fail to incorporate meaningful public participation in developing socially equitable policies. Despite the deadline for submission of NECPs having passed on June 30, 2024, only 14 Member States have complied, and the coalition asserts that these delays and deficiencies undermine the EU’s overarching climate objectives and the principle of a just transition for its citizens. The complaint against Germany, submitted by the organization Germanwatch, alleges that Germany’s NECP breaches European Union law. Specifically, Germanwatch alleges that Germany’s NECP is legally insufficient, lacking concrete measures and the ambition necessary for meeting the EU’s 2030 climate and energy targets. Germany’s NECP reaffirms its notable ambition to reduce greenhouse gas emissions by at least 55% by 2030 in comparison to 1990 levels, which is a target outlined in Germany's Federal Climate Action Law, adopted in 2019. Germany’s NECP also reflects the state’s long-term goal of achieving climate neutrality by 2050. To achieve these commitments, the NECP incorporates key measures from the “2030 Climate Protection Plan”, otherwise referred to as the “Climate Package”. A key component of this package includes the introduction of national carbon pricing under the Fuel Emissions Trading Act, which took effect in 2021. The pricing mechanism is intended to ensure that Germany meets its 2030 targets, specifically targeting the transport and heating sectors absent from the EU Emissions Trading System (ETS). Germanwatch contends that the NECP remains insufficiently ambitious, referencing a lack of clarity in the NECP’s outlining of how the state will meet its goals. The complaint asserts that the national CO2 pricing scheme, although a step forward, sets too low of prices to drive meaningful emissions reductions. In order to stay on track with its 2030 goals, Germanwatch contends that a rapid price increase between 2026 and 2030 would be necessary, posing risks for the effectiveness and social acceptance of the intiative. Additionally, Germanwatch states that Germany’s non-ETS targets under the EU Effort Sharing target, specifically a 38% reduction of greenhouse gases by 2030 compared to 2005 levels, lack robustness and clarity in their policies. The target of reducing the share of primary energy consumption set at a 30% share of renewable energy in the gross final energy consumption by 2030 also represents minimal ambition, according to Germanwatch. Germanwatch also acknowledges the removal of references to the Tenant Electricity Supply Act in the state’s NECP, outlining the Act’s potential to enable equitable access to solar energy in urban areas, and how its removal results in insufficient measures to ensure social equity in the energy transition. *Pursuant to EU law, the European Commission is mandated to ensure that Member States fulfill their legal obligations. Should the Commission determine that a Member State is in breach, it may initiate formal infringement proceedings to bring national legislation and practices into compliance with EU law. The Commission has 12 months to respond to these complaints.