Deutsche Version: umweltklimaenergie.de/klimarecht/
Climate law sets the targets and instruments for reducing greenhouse gas emissions and adapting to the consequences of climate change. For companies operating in Germany, it determines carbon costs, reporting obligations and the regulatory framework for investments in low-carbon technologies. We advise on German, EU and international rules.
German climate targets
The Federal Climate Change Act (Bundes-Klimaschutzgesetz – KSG) requires greenhouse gas emissions to be reduced by at least 65 % by 2030 and 88 % by 2040 compared with 1990, and greenhouse gas neutrality by 2045. Since the 2024 amendment, compliance is assessed across sectors and on the basis of annual projection data reviewed by the Council of Experts on Climate Change (Expertenrat für Klimafragen). The Federal Government must take additional measures if the projections show that the total permitted emissions will be exceeded in two consecutive years.
In its climate decision of 24 March 2021 (1 BvR 2656/18 and others), the Federal Constitutional Court (Bundesverfassungsgericht) held that the previous version of the Act did not sufficiently protect the freedoms of future generations; the Act was subsequently tightened in 2021.
The Federal Climate Adaptation Act (Bundes-Klimaanpassungsgesetz – KAnG), in force since 1 July 2024, requires the Federal Government and the federal states to adopt climate adaptation strategies.
Carbon pricing
- EU ETS 1: The EU Emissions Trading System covers the energy sector, energy-intensive industry and aviation, and since 2024 also maritime transport. In Germany it is implemented by the Greenhouse Gas Emissions Trading Act (Treibhausgas-Emissionshandelsgesetz – TEHG).
- National fuel emissions trading: Since 2021, companies placing fossil fuels such as heating oil, petrol, diesel or natural gas on the market must acquire certificates under the Fuel Emissions Trading Act (Brennstoffemissionshandelsgesetz – BEHG). For 2026, a price corridor of EUR 55 to 65 per tonne of CO₂ applies.
- EU ETS 2: A separate EU emissions trading system for buildings, road transport and further sectors is to replace the national scheme. Its start has been postponed to 2028.
- CBAM: The Carbon Border Adjustment Mechanism has been in its definitive phase since 1 January 2026. Importers of certain goods such as steel, aluminium, cement or fertilisers must account for embedded emissions.
EU framework
The European Climate Law (Regulation (EU) 2021/1119) sets a reduction of net greenhouse gas emissions by at least 55 % by 2030 compared with 1990 and climate neutrality by 2050. An amendment adopted in 2026 adds an intermediate target of minus 90 % by 2040. For sectors outside EU ETS 1, the Effort Sharing Regulation (Regulation (EU) 2018/842) sets national targets; for Germany, minus 50 % by 2030 compared with 2005. The Renewable Energy Directive (RED III, Directive (EU) 2023/2413) raises the binding EU target for renewables to at least 42.5 % of gross final energy consumption by 2030.
International framework and climate litigation
The Paris Agreement aims to limit global warming to well below 2 °C, and preferably 1.5 °C, through nationally determined contributions (NDCs). Courts are increasingly involved: in Urgenda Foundation v. Netherlands (Hoge Raad, 20 December 2019) the Dutch state was ordered to reduce emissions. In Lliuya v. RWE, the Higher Regional Court (Oberlandesgericht – OLG) Hamm dismissed the claim on 28 May 2025 (I-5 U 15/17) because no sufficiently specific risk to the claimant’s property was established, but considered civil liability of major emitters possible in principle.
How we support you
- Advice on emissions trading obligations, carbon costs and CBAM
- Support with reports and evidence such as carbon footprints and sustainability reports
- Drafting of contracts with climate clauses, for example in supply chains
- Representation in climate-related proceedings and in proceedings concerning breaches of climate rules
Questions about climate law in Germany? Our lawyers advise clients nationwide and internationally. Request a consultation