Commodities

Germany maps out fossil fuel exit, backing EVs, heat pumps

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BERLIN -- Germany’s cabinet approved a roadmap on Wednesday to phase out coal, oil and gas by 2045, reaffirming a climate strategy focused on electrification despite a minister’s call for more flexibility on cars, heating and carbon pricing.

An environment ministry spokesperson said the plan would be presented at the United Nations General Assembly in New York later on Wednesday.

Germany would be the third country after France and the Netherlands to adopt a national roadmap under an international effort to move away from fossil fuels, the spokesperson added.

Spiegel magazine earlier on Wednesday reported that, under the plan, Germany will examine whether an agreed deadline to end coal-fired power generation by 2038 can be brought forward to 2035.

In transport, the plan foresees EU fleet emissions rules to lead to battery-electric cars making up 100 per cent of new passenger car registrations by 2035, Spiegel said.

That contrasts with demands from some conservatives, including Economy Minister Katherina Reiche, to preserve a larger role for combustion-engine vehicles using alternative fuels.

In buildings, heat pumps are expected to become Germany’s dominant heating system in the coming years, while oil and gas boilers using rising shares of climate-neutral fuels are mentioned only as part of the transition, according to Spiegel.

Politico also reported on the initiative earlier.

(Reporting by Kirsti Knolle)