BERLIN (dpa-AFX) - Against the backdrop of the global energy crisis and Germany's economic downturn, Chancellor Friedrich Merz is scheduled to deliver a keynote speech on climate policy this afternoon. Closing the Petersberg Climate Dialogue, the CDU leader is expected to outline the next steps for the expansion of renewable energy and the structural transformation of German industry.

Fatih Birol, Executive Director of the International Energy Agency, is also expected to attend the high-level closing session of the conference. He is slated to provide an assessment of the current state of energy markets. Business representatives are set to detail the regulatory frameworks they deem necessary for a successful climate policy. Participants include executives from Salzgitter AG, the building materials group Cemex, and the Institutional Investors Group on Climate Change.

Approximately 30 nations in consultations

The Petersberg Climate Dialogue commenced on Tuesday. At the invitation of Federal Environment Minister Carsten Schneider (SPD), representatives from approximately 30 nations are discussing international climate protection and the transition from carbon-intensive energy sources such as oil, gas, and coal to renewables. The conference also serves as a preparatory meeting for the next UN Climate Change Conference in Turkey this November.

In light of the repercussions of the Iran war and the surge in oil and gas prices, Schneider was among those calling for an accelerated energy transition. Climate policy provides solutions to reduce dependence on imports, Schneider noted, pointing to renewable energy, electromobility, and heat pumps as established remedies. On the first day of the conference, Schneider stated that the fossil fuel crisis would act as an accelerator.

Domestic policy friction

Germany has committed to ambitious international climate targets. The country aims to reduce greenhouse gas emissions by 65 percent compared to 1990 levels by 2030, with the goal of reaching climate neutrality by 2045. Simultaneously, the "Grand Coalition" (Schwarz-Rot) plans to ease strict EU mandates for internal combustion engine vehicles and allow more flexibility for fossil-fuel heating systems. Within the government, there are also disagreements regarding the pace and subsidization of renewable energy.

The Green Party has voiced sharp criticism. Party leader Felix Banaszak told the "Rheinische Post" that Schneider was being completely sidelined by his own federal government. "We cannot lecture the world on climate partnerships while Chancellor Merz and Economy Minister (Katherina) Reiche seek to dismantle the climate achievements of recent years within a matter of months at home."

Schneider defends policy stance

Schneider himself defended the federal government's climate and energy policy. His climate protection program earmarks an additional eight billion euros for the coming years. He noted that the adjustments to the combustion engine phase-out would mean achieving 97 percent electrification for cars by 2035 instead of 100 percent - a compromise he said he could live with. Regarding heating systems, he emphasized that the rising CO2 price continues to send a clear signal to "switch." Schneider stated on Tuesday that the Building Modernization Act would include robust tenant protections and expressed his satisfaction with the progress.

Merz previously delivered a speech on international climate policy at the climate summit in Belém, Brazil, in November 2025. At that time, he emphasized that Germany remains committed to national and European climate targets. "To achieve these, we are relying on innovation and technology to bridge the gap between competitiveness, climate protection, and social balance," he stated./vsr/DP/stk