This document assesses the just transition aspects of Germany's draft updated National Energy and Climate Plan (NECP). Specifically, it focuses on how well the plan addresses the territorial and distributional challenges of transitioning to climate neutrality. A just transition aims to maximize positive opportunities while minimizing negative impacts on vulnerable communities and regions. The NECPs are essential tools mandated by the EU Governance Regulation for Member States to plan their climate strategies. Germany, like other EU countries, is updating its NECP to align with the European Climate Law and the Fit for 55 package, aiming for more ambitious climate goals. 

Just Transition – German NECP is insufficient 

Despite higher ambitions compared to the 2019 NECP, the assessment finds that the German draft updated NECP is hindered by an overly general approach and a lack of critical details in many areas. While some policy measures are mentioned in most of the assessed aspects, they are not detailed enough to determine whether their implementation will effectively achieve the intended goals. Several areas need significant refinement before the final version of the plan is released in 2024, particularly regarding the following aspects of just transition:

• transport poverty,
• working conditions and re-training,
• local clean energy initiatives and decarbonized industries.

Aim of the project and other case studies

The goal of our project, conducted in collaboration with Reform Institute, the BlueLink Foundation and ECCO, is to support this process by developing a methodological framework for assessing the updated NECPs from a just transition perspective and applying it to selected plans. The report is part of a series of reports investigating Territorial and Distributional Aspects of Just Transition. Other focus countries are Poland, Bulgaria and Italy. The reports, along with the methodological guiding document, can be accessed here.