Can Politics Stop Climate Change?

The decision by the Federal Constitutional Court was a setback for the German government, which must make improvements in the area of climate protection. The question: What incentives pave the way for new, climate-friendly technologies to enter the economy? They have to become profitable, says Ecologic Institute's Benjamin Görlach in an interview with Carsten Roemheld for the Fidelity Kapitalmarkt – Podcast.

Part 1/2: The Consequences of the Climate Ruling by the German Constitutional Court

The podcast episode starts off with fundamentals – what did the German Federal Constitutional Court decide on the German national climate law in June 2021, what does this mean for German climate policy going forward – but also more broadly, how are climate protection and freedom interlinked?

Part 2/2: What Climate Protection has to do with Regional Policy?

After that, the discussion zoomed in on some core challenges in the transformation process:

• How can the transformation to a climate-neutral industry succeed? How do we have to rethink international competitiveness – from producing at least cost, to being able to compete in a world economy that is setting course for climate neutrality? And which political instruments do Germany and the EU to support their domestic industries in this transformation process? What is the role of emissions trading in all this – and why is the CO₂ price alone not enough?
• How can carbon pricing be combined with greater social equity? Who is affected by carbon pricing in what way – and which effects need to be compensated? What forms of social compensation for rising CO₂ prices are there – and how can they support low-income households in the transition process?
• And finally, how is the governance of energy and climate policy organised in the new German government – what has changed, and how well is the government positioned to manage climate protection across the boundaries of the ministries involved?