How Fair Is the Energy Transition? Distributional Effects in German Energy and Climate Policy

Germany has raised its climate targets following the EU’s decision to tighten European climate targets and the ruling by the Federal Constitutional Court on the partial unconstitutionality of the Climate Protection Act. Greenhouse gas emissions are to be reduced by at least 65 percent by 2030 compared with 1990 levels, and climate neutrality is to be achieved by 2045. Achieving the climate targets will require comprehensive measures to reduce greenhouse gas emissions, particularly in the energy and transport sectors. Implementation will be critical to the level and distribution of the burden. Who will primarily have to bear the costs of the energy turnaround and the associated burdens?