Germany plans to boost green investment as Covid’s rebound coincides with tighter net zero targets, while Angela Merkel’s party faces a serious threat from the Greens in the September federal election.
The government has announced new plans to cut Germany’s carbon emissions to nearly two-thirds by 2030 and to zero by 2045, compared to previous proposals for 2050, as well as the unveiling of a sustainable financing strategy.
This foresees heavy investments in cleaner energy, physical infrastructure, retraining of workers and a “circular economy” with more recycling.
It could also pose a threat to the city of London, as Germany aims to become “a leading sustainable finance hub”, in part by issuing more green bonds this year.
The move comes as Germany leads the eurozone’s rebound after its double-dip recession, led by strong growth in manufacturing in the currency area’s largest economy.
Advances in immunization mean lifting some lockdown rules allows the service sector to start growing in some countries.
The Purchasing Managers Index, a survey of IHS Markit companies, rose to 53.8 from 53.2 in March.
Any score above 50 indicates an increase in activity over the month, and therefore an acceleration in growth.
Nicola Nobile of Oxford Economics said he “confirmed that the worst for the eurozone economy should be over”.
She expects eurozone GDP to grow by around 1.5% in the second quarter, reversing the 0.6% contraction experienced in the first three months of the year.