Germany Approves Roadmap to Phase Out Fossil Fuels by 2045

The Federal Government of Germany approved a roadmap on Wednesday to phase out fossil fuels by 2045, marking the first time the country has made an explicit promise to transition away from coal, oil, and gas. The strategy aims to increase the share of renewable energy in electricity generation from 55% to 80% by 2030 and reduce methane emissions by 30% within the same timeframe.

Germany reaffirmed its goal to exit coal by 2038, though officials noted the possibility of accelerating this deadline to 2035. In the transport sector, the plan mandates that battery-electric cars comprise 100% of new passenger car registrations by 2035. This target faced internal pushback from Economy Minister Katherina Reiche, who called for more flexibility regarding combustion engines, heating, and carbon pricing.

The policy shift aligns with a market surge for electric vehicles. Volkswagen Group reported that it is now selling more EVs than combustion cars in Germany, prompting the automaker to shift production capacity from its Wolfsburg plant to factories in Emden and Zwickau. The roadmap comes amid political opposition from the Alternative for Germany party, which has campaigned against wind turbines and heat pump mandates.