In an editorial article published in Handelsblatt, Clemens Fuest, head of the Institute for Economic Research (ifo), urges on the new German administration to demonstrate more commitment to European policy. A “new way of thinking” is required in climate policy, according to Fuest, who argues that present policies depend too much on inflexible sectoral objectives for emissions reduction and “blanket rules and standards that make climate protection needlessly expensive.
” Instead, he says, the new administration should place greater emphasis on the carbon price and the European Union’s emissions trading scheme (EU ETS) as tools for reducing emissions. It should also proceed with significant infrastructure expenditures, such as the construction of charge stations for electric cars and the extension of railway lines.
As part of this strategy, Fuest asks for the integration of decarbonisation with a reliable and competitively priced power supply for industry, as well as investments in adaption measures that can safeguard Germany against extreme weather events like as floods and storms.