In regard to the intended nationally determined contributions (INDCs) pledge to Paris agreement, Germany intends to reduce greenhouse gas emissions (GHGs) by 40% by 2020 and up to about 95% in 2050, as compared to 1990 levels. To achieve this aim, Germany drafted a policy known as the Climate Action Plan 2050 which provides emission reductions targets in individual sectors such as energy, industry, buildings, agriculture and transport among others as shown in the table below.

Source: www.bmub.bund.de (Federal ministry for Environment, Nature conservation, Building and Nuclear Safety)

The total emission reductions for 2040 and 2050 are 374 and 62-250 million tonnes of CO2 equivalent respectively. However, the Climate Action Plan, 2050 lacks an exact financial plan that provides transparent financial information on the management of capital flows in climate-friendly projects and companies. It also lacks ways to initiate the right capital flows in pensions or green market bonds for proper innovative products and positive financial market dynamics. Germany is also not doing enough to meet the sectoral targets. For instance, it is likely to miss the short-term emission reduction targets of 40% by 2020 which are set to help meet the sectoral targets. This is a major setback on Germany’s commitments to the EU emission reduction goals.