Germany Reconsiders Green Energy Ambitions

(MENAFN) Chancellor Friedrich Merz has signaled a major shift in Germany’s energy policy, warning that a full transition away from fossil fuels would “deindustrialize” the country, marking a departure from Berlin’s prior aggressive push toward green energy.

The adjustment comes as Germany faces the economic fallout from reduced energy imports and rising costs. Prices have surged due to the ongoing conflict in Iran and disruptions near the Strait of Hormuz, placing additional strain on German industry. The EU’s largest economy historically relied on affordable, stable energy to support its manufacturing sector. That model, once based on Russian pipeline gas, was abandoned after the 2022 Ukraine escalation in favor of more expensive alternatives and accelerated renewable adoption.

Speaking to the Bundestag on Wednesday, Merz cautioned that abandoning oil and gas would endanger vital sectors, particularly chemicals, asserting that “large parts of our industry… would no longer be viable” under such a scenario.

“Oil and gas are an important raw material for our industry,” he added, emphasizing the need for Germany to maintain the capacity “to import and maybe even to produce gas itself.”

Recent studies, however, indicate that domestic reserves can no longer meet demand, as previously productive fields are mostly depleted. This reliance on imported energy leaves Germany vulnerable to rising costs and supply shocks. Russia previously supplied 55% of the country’s natural gas, and Germany’s economy has experienced steady contraction since moving away from Russian sources.

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