A growing rift is emerging within the German coalition government over climate policy and the pace of the energy transition, with Berlin’s Senator for Economy and Energy, Franziska Giffey (SPD), publicly rebuking the prevailing narrative emanating from some federal ministers. Giffey, in an interview with ntv, sharply criticized the assertion that climate protection burdens the economy, arguing that the opposite is true: “We need a different narrative. The story that climate protection is a burden and weighs on the struggling economy is wrong. We will be economically successful “because” of climate protection.
Her remarks came in direct response to recent comments by CDU leader and potential future Chancellor Friedrich Merz, who prioritized economic growth and signaled concerns that Germany’s environmental policies were undermining democratic principles. This stance aligns with those of Economics Minister Katherina Reiche (CDU), who has been actively pushing for cuts to renewable energy subsidies and a reduction in the overall costs of the energy transition since assuming her position.
Giffey condemned this approach as short-sighted, drawing a parallel to neglecting future investments in order to achieve short-term savings. “It’s as if you aren’t investing in the future to save money” she stated, emphasizing the essential role of government support in driving structural change. She defended ongoing subsidy programs, stating they create essential incentives for innovation and adaptation.
Beyond the public disagreement with Merz, Giffey revealed a widespread unease amongst other state governments regarding Reiche’s current trajectory. During a recent Energy Ministers’ Conference, she indicated that all states expressed a firm commitment to maintaining existing climate policies. “We have adapted to this policy and are already using its potential in many ways” she explained, referencing concerns voiced privately within the government. “Many companies are developing business models for it. This must continue without hesitation.
Giffey pointed to Berlin’s thriving economy as a tangible example of the benefits of sustainable investment. She highlighted the city’s flourishing startup scene and businesses focused on efficiency, sustainability and related ecological ventures, emphasizing that their pursuit of profit is intrinsically linked to environmentally responsible practices. “They don’t do it out of altruism. They want to build a business model” she asserted.
The Senator concluded by confidently asserting Berlin’s continued economic success, claiming it has exceeded the national average for twelve consecutive years, a trend expected to continue. The increasingly vocal criticism from Giffey throws into sharp relief the internal tensions shaping Germany’s climate and energy transition and raises questions about the government’s long-term commitment to its environmental goals amidst growing economic anxieties. The clash highlights a fundamental divergence in perspectives within the ruling coalition regarding the balance between economic expediency and ecological responsibility.
