Ukraine war challenges Germany's climate commitments

Significance

The government has committed to building new liquefied natural gas (LNG) terminals, buying gas from new partners and boosting investment in renewables. However, the role accorded to Russian gas as a transition fuel and vital industrial input casts doubt on the country's ability to meet its decarbonisation goals.

Impacts

• Germany’s capacity to build more than a few LNG terminals will be limited due to political opposition.
• Unlike other EU countries, Germany is highly unlikely to reverse its nuclear phase-out policy.
• Challenges associated with balancing climate objectives and economic needs could fuel tension within the coalition government.