Germany’s prospective coalition government has agreed to continue the country’s landmark energy transition without major adjustments and stick to existing climate targets, reports Clean Energy Wire. Faced with economic stagnation and the geopolitical shake-up after the US election, the coalition parties – the conservative CDU/CSU alliance under chancellor-in-waiting Friedrich Merz and the Social Democratic Party – have put more emphasis on economic competitiveness than climate action. The energy industry has praised the continuation of existing policy, while environmental NGOs showed relief over the treaty’s climate commitments, both on a domestic and the EU level.

In their highly anticipated coalition treaty, agreed after weeks of negotiations, the conservative CDU/CSU alliance of likely future chancellor Friedrich Merz and the Social Democratic Party (SDP) said they will carry on rolling out renewables and stick to the country’s target to be climate neutral by 2045.

The coalition partners also said they would continue to support schemes to make industry, building, transport and other sectors more climate-friendly. However, following two years of economic stagnation and recent geopolitical upheavals, boosting the growth of Europe’s largest economy – for example, via energy price cuts – by showing slightly less climate ambition than the outgoing government of the SPD and the Greens has been given priority.

While the business community welcomed the emphasis on competitiveness, cost reductions and the continuation of climate policy, climate activists said they were relieved that the future government remains committed to climate targets.

“It is a good sign that the coalition is not making a U-turn on the energy transition, but is instead promoting the continuation of energy policy and an innovation-driven course for Germany,” said the head of utility association BDEW, Kerstin Andreae. “The coalition agreement is a basis for the efficient continuation of the energy transition – cost and system efficiency must be the guiding principles in future.”

The new government looks set to be sworn in around early May, after both the SPD’s members and the CDU’s party delegates have approved the coalition treaty.