The Lima Climate Summit received a further boost yesterday, as the German government approved a wide-ranging new strategy designed to ensure it meets its goal of slashing greenhouse gas emissions 40 per cent by 2020.

 

The German government yesterday approved plans to deliver a 78 million tonnes of emission reductions by 2020, which will be delivered by steep cuts in emissions from the building, transport, waste, and energy sectors.

 

Reports suggested the new programme would help mobilize €40bn of investment by 2018, delivering an economic boost to the ailing eurozone.

 

Specifically, €1bn a year of subsidies are to be offered to domestic energy-efficiency programmes in a bid to cut emissions by 25 million to 30 million tonnes, while an electric car rollout could curb emissions by a further 10 million tonnes. About 3.6 million tonnes of savings are expected to be provided by the agricultural sector, with waste management reforms and cuts to industrial emissions also expected to deliver significant savings.

 

Controversially, the new strategy envisages 22 million tonnes of emission savings from the energy sector, which could result in eight coal-fired power plants being closed.

 

The move has prompted warnings from industry groups that it could undermine Germany's competitiveness, increase energy costs, and still see the country import coal power from its neighbors.

 

Conversely, green groups slammed the package of proposals, accusing the government of failing to provide a firm commitment to close down coal plants and not delivering detailed proposals to ensure the new targets are met.

 

The new strategy is the latest in a string of fresh emission-reduction commitments which have fuelled hopes that diplomats could make significant progress at the current Lima Climate Summit towards a global agreement.