Berlin: German Chancellor Angela Merkel says she is fighting climate change with all her strength to enable future generations to live in peace and prosperity.

"Global warming is real. It is threatening," Merkel said in the recorded New Year's speech due to be broadcasted on Tuesday evening. Rising world temperatures and the problems created by global warming are all man-made, Merkel added.

German Chancellor Angela Merkel poses for media after the recording of her annual New Year's speech at the Chancellery in Berlin. Credit:AP

"So we have to do everything humanly possible to overcome this human challenge. It is still possible," Merkel said.

Merkel said that was the principle behind a recently agreed German package of measures aimed at addressing climate change, which include a carbon dioxide pricing system for the transport and heating sectors and lowering value-added tax on long-distance rail tickets.