Germany's industry faces climate‑target shift and job cuts amid rising energy costs

Germany’s emissions fell only modestly in 2025, with the EU‑ETS reporting a 3 % drop for stationary plants and a 2 % decline in aviation, while overall greenhouse‑gas levels remained near‑stable. Industry groups and trade unions have criticised the nation’s early climate goal of 2045, arguing it raises costs for manufacturers without adding climate benefit, and have called for alignment with the EU target of 2050.

RWE chief Markus Krebber and the IGBCE union have backed the push to postpone the national neutrality date, saying the “German Sonderweg” makes the industrial location more expensive and would simply shift emissions abroad. At the same time, the chemical sector is confronting a de‑industrialisation trend: Evonik plans to cut thousands of jobs by 2029, citing high energy prices, weak growth and stiff international competition. Industry bodies warn that without cheaper, reliable energy – and without a return to cheap Russian gas, which is deemed untenable – German manufacturing risks losing competitiveness.

Stakeholders argue that credible climate transformation requires stable, affordable energy, faster permitting and supportive policy frameworks to keep the chemical‑pharma sector viable while meeting long‑term decarbonisation goals.