Germany Slips to 25th in Climate Protection Index but Emerges as a Global Climate Technology Export Leader

Germany has fallen to 25th place in the latest Climate Protection Index, reflecting a concerning decline in its domestic climate policy effectiveness despite its status as a key player in global climate technology exports. According to the ZDF report, Germany’s performance in greenhouse gas emissions, renewable energy, and climate policy was rated as "moderate," with a "good" rating only in energy consumption. Its national climate policy, however, was ranked "weak" and placed 36th, marking Germany’s lowest position ever in this category. The report attributes this decline largely to policies under Economy Minister Katherina Reiche, which have emphasized natural gas and slowed renewable energy advancement. This contrasts sharply with the technological progress witnessed globally in renewable energy and electric vehicles.

Meanwhile, a study by KfW and Deloitte, as reported by FAZ, highlights Germany’s significant role as a climate technology exporter, holding a 10% share of the global market, second only to China’s 26%. The global market for climate technologies, including solar panels, wind power equipment, battery storage, and electric vehicles, is projected to reach $2.8 trillion by 2025. Germany previously led in exporting climate-friendly transportation technology but has recently been overtaken by China, which is projected to hold an 18% market share in this sector by 2025 compared to Germany’s 17%. The study also warns of Germany’s increasing dependence on China, which dominates 85% of global battery cell manufacturing capacity and over 80% of photovoltaic supply chains, posing risks for European production in the event of supply disruptions.

Despite domestic policy shortcomings, Germany’s export strength in climate technology underscores its complex dual role in the global fight against climate change—lagging behind in internal climate policy but pushing boundaries as a technology leader. As the global emissions trajectory looks set to improve with technological advances, Germany’s challenge will be to align its domestic policies with its export leadership to foster a comprehensive climate strategy.

Denmark leads the Climate Protection Index for the sixth consecutive year, with top spots left vacant, signaling no nation fully meets the Paris Agreement goals. Countries such as Hungary, Portugal, the UK, Spain, and Morocco have made notable progress. The report’s spotlight on political stagnation amid technological advances further illustrates the urgent need for policy reforms in major emitters like Germany.