Germany has approved its Climate Protection Program 2026 (Klimaschutzprogramm 2026), advancing toward its 2045 carbon neutrality target.

The plan allocates around €2.9 billion to support industrial electrification, process decarbonization, and circular economy initiatives, while also expanding renewable energy development. The government estimates these measures will significantly cut emissions and reduce reliance on natural gas by 2030.

The German Steel Industry Association (WV Stahl) welcomed the overall direction and the introduction of a lead market for low-carbon materials, but noted a lack of concrete measures in key areas such as rail infrastructure, which could limit decarbonization progress. It also urged the establishment of “Made in Europe” criteria to safeguard industrial competitiveness and prevent the outflow of public funding.